SALASAR TECHNO ENGINEERING 2020-21 Annual Report Analysis

Wed, 31 Mar

SALASAR TECHNO ENGINEERING 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.

SALASAR TECHNO ENGINEERING Income Statement Analysis

• Operating income during the year rose 13.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.6% in FY21 as against 9.8% in FY20.
• Depreciation charges increased by 12.6% and finance costs decreased by 14.2% YoY, respectively.
• Other income grew by 492.5% YoY.
• Net profit for the year grew by 33.6% YoY.
• Net profit margins during the year grew from 4.3% in FY20 to 5.0% in FY21.

SALASAR TECHNO ENGINEERING Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	5,263	5,966	13.4%
Other income	Rs m	17	102	492.5%
Total Revenues	Rs m	5,280	6,067	14.9%
Gross profit	Rs m	518	570	10.0%
Depreciation	Rs m	50	56	12.6%
Interest	Rs m	206	176	-14.2%
Profit before tax	Rs m	279	439	56.9%
Tax	Rs m	56	140	150.6%
Profit after tax	Rs m	224	299	33.6%
Gross profit margin	%	9.8	9.6
Effective tax rate	%	19.9	31.8
Net profit margin	%	4.3	5.0

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SALASAR TECHNO ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 9.6%.
• Long-term debt stood at Rs 339 million as compared to Rs 52 million during FY20, a growth of 549.8%.
• Current assets rose 22% and stood at Rs 4 billion, while fixed assets rose 21% and stood at Rs 1 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 6 billion as against Rs 5 billion during FY20, thereby witnessing a growth of 22%.

SALASAR TECHNO ENGINEERING Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,071	2,527	22.0
Current Liabilities	Rs m	2,357	2,583	9.6
Long-term Debt	Rs m	52	339	549.8
Total Liabilities	Rs m	4,535	5,534	22.0
Current assets	Rs m	3,479	4,253	22.2
Fixed Assets	Rs m	1,056	1,281	21.3
Total Assets	Rs m	4,535	5,534	22.0

SALASAR TECHNO ENGINEERING Cash Flow Statement Analysis

• SALASAR TECHNO ENGINEERING's cash flow from operating activities (CFO) during FY21 stood at Rs -71 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -235 million, an improvement of 8.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 304 million, an improvement of 388% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -2 million from the Rs -12 million net cash flows seen during FY20.

SALASAR TECHNO ENGINEERING 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	311	-71	-
Cash Flow from Investing Activities	Rs m	-217	-235	-
Cash Flow from Financing Activities	Rs m	-106	304	-
Net Cash Flow	Rs m	-12	-2	-

Current Valuations for SALASAR TECHNO ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.9, an improvement from the EPS of Rs 16.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 364.9, stands at 34.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 9.4 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	396.0	417.5
TTM Earnings per share	Rs	16.8	20.9
Diluted earnings per share	Rs	7.8	10.5
Price to Cash Flow	x	8.1	9.4
TTM P/E ratio	x	9.9	34.9
Price / Book Value ratio	x	1.0	1.3
Market Cap	Rs m	2,043	3,321
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for SALASAR TECHNO ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY21, from 1.5x 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 3.5x during FY21, from 2.4x 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 11.8% during FY21, from 10.8% 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 declined and down at 21.5% during FY21, from 22.8% 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 declined and down at 8.6% during FY21, from 9.5% 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	1.5	1.6
Debtors’ Days	Days	1,485	1,469
Interest coverage	x	2.4	3.5
Debt to equity ratio	x	0.0	0.1
Return on assets	%	9.5	8.6
Return on equity	%	10.8	11.8
Return on capital employed	%	22.8	21.5

To see how SALASAR TECHNO ENGINEERING has performed over the last 5 years, please visit here.

SALASAR TECHNO ENGINEERING Share Price Performance

Over the last one year, SALASAR TECHNO ENGINEERING share price has moved up from Rs 77.9 to Rs 364.9, registering a gain of Rs 287.0 or around 368.4%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for SALASAR TECHNO ENGINEERING and quarterly results for SALASAR TECHNO ENGINEERING)

Read: Latest Annual Report Analysis of SALASAR TECHNO ENGINEERING