SAIL 2020-21 Annual Report Analysis

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SAIL 2020-21 Annual Report Analysis
Mon, 18 Oct

SAIL has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

SAIL Income Statement Analysis

  • Operating income during the year rose 12.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 35.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.5% in FY21 as against 15.3% in FY20.
  • Depreciation charges increased by 9.2% and finance costs decreased by 19.2% YoY, respectively.
  • Other income declined by 5.0% YoY.
  • Net profit for the year grew by 91.1% YoY.
  • Net profit margins during the year grew from 3.1% in FY20 to 5.3% in FY21.

SAIL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 616,642 691,136 12.1%
Other income Rs m 9,058 8,607 -5.0%
Total Revenues Rs m 625,700 699,743 11.8%
Gross profit Rs m 94,440 127,972 35.5%
Depreciation Rs m 37,557 41,028 9.2%
Interest Rs m 34,868 28,172 -19.2%
Profit before tax Rs m 31,073 67,379 116.8%
Tax Rs m 11,809 30,575 158.9%
Profit after tax Rs m 19,264 36,804 91.1%
Gross profit margin % 15.3 18.5
Effective tax rate % 38.0 45.4
Net profit margin % 3.1 5.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SAIL Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 467 billion as compared to Rs 450 billion in FY20, thereby witnessing an increase of 3.6%.
  • Long-term debt down at Rs 197 billion as compared to Rs 346 billion during FY20, a fall of 42.9%.
  • Current assets fell 21% and stood at Rs 324 billion, while fixed assets rose 4% and stood at Rs 871 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 1,194 billion as against Rs 1,250 billion during FY20, thereby witnessing a fall of 4%.

SAIL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 415,102 454,062 9.4
 
Current Liabilities Rs m 450,360 466,766 3.6
Long-term Debt Rs m 345,600 197,260 -42.9
Total Liabilities Rs m 1,249,766 1,194,249 -4.4
 
Current assets Rs m 411,966 323,632 -21.4
Fixed Assets Rs m 837,800 870,617 3.9
Total Assets Rs m 1,249,766 1,194,249 -4.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SAIL Cash Flow Statement Analysis

  • SAIL's cash flow from operating activities (CFO) during FY21 stood at Rs 234 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -34 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -197 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 3 billion from the Rs 1 billion net cash flows seen during FY20.

SAIL Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m -6,177 234,304 -
Cash Flow from Investing Activities Rs m -42,605 -34,127 -
Cash Flow from Financing Activities Rs m 50,032 -196,899 -
Net Cash Flow Rs m 1,250 3,277 162.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SAIL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.9, an improvement from the EPS of Rs 4.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 127.1, stands at 6.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 149.3 167.3
TTM Earnings per share Rs 4.7 8.9
Diluted earnings per share Rs 4.7 8.9
Price to Cash Flow x 9.2 6.7
TTM P/E ratio x 6.0 6.0
Price / Book Value ratio x 0.4 0.5
Market Cap Rs m 524,990 524,990
Dividends per share (Unadj.) Rs 0.0 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SAIL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY21, from 0.9x during FY20. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 3.4x during FY21, from 1.9x during FY20. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 8.1% during FY21, from 4.6% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 14.7% during FY21, from 8.7% during FY20. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 5.4% during FY21, from 4.3% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 0.9 0.7
Debtors’ Days Days 5 4
Interest coverage x 1.9 3.4
Debt to equity ratio x 0.8 0.4
Return on assets % 4.3 5.4
Return on equity % 4.6 8.1
Return on capital employed % 8.7 14.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how SAIL has performed over the last 5 years, please visit here.

SAIL Share Price Performance

Over the last one year, SAIL share price has moved up from Rs 34.0 to Rs 127.1, registering a gain of Rs 93.2 or around 274.4%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 22,460.8 (up 4.5%). Over the last one year it has moved up from 8,205.4 to 22,460.8, a gain of 14,255 points (up 173.7%).

Overall, the S&P BSE SENSEX is up 52.5% over the year.

(To know more, check out historical annual results for SAIL and quarterly results for SAIL)

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Dec 10, 2020 | Updated on Dec 10, 2020

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