SASKEN TECHNOLOGIES 2020-21 Annual Report Analysis

Wed, 31 Mar

SASKEN TECHNOLOGIES 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.

SASKEN TECHNOLOGIES Income Statement Analysis

• Operating income during the year fell 9.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 47.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.9% in FY21 as against 17.8% in FY20.
• Depreciation charges decreased by 8.8% and finance costs decreased by 33.6% YoY, respectively.
• Other income declined by 13.1% YoY.
• Net profit for the year grew by 45.3% YoY.
• Net profit margins during the year grew from 16.0% in FY20 to 25.8% in FY21.

SASKEN TECHNOLOGIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	4,922	4,448	-9.6%
Other income	Rs m	364	316	-13.1%
Total Revenues	Rs m	5,286	4,764	-9.9%
Gross profit	Rs m	875	1,286	47.0%
Depreciation	Rs m	112	102	-8.8%
Interest	Rs m	7	5	-33.6%
Profit before tax	Rs m	1,120	1,495	33.5%
Tax	Rs m	331	349	5.5%
Profit after tax	Rs m	788	1,145	45.3%
Gross profit margin	%	17.8	28.9
Effective tax rate	%	29.6	23.4
Net profit margin	%	16.0	25.8

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SASKEN TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 978 million as compared to Rs 1 billion in FY20, thereby witnessing an decrease of -25.2%.
• Current assets fell 10% and stood at Rs 2 billion, while fixed assets rose 23% and stood at Rs 4 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 6 billion during FY20, thereby witnessing a growth of 8%.

SASKEN TECHNOLOGIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,748	5,641	18.8
Current Liabilities	Rs m	1,308	978	-25.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,110	6,627	8.5
Current assets	Rs m	2,717	2,442	-10.1
Fixed Assets	Rs m	3,393	4,185	23.3
Total Assets	Rs m	6,110	6,627	8.5

SASKEN TECHNOLOGIES Cash Flow Statement Analysis

• SASKEN TECHNOLOGIES's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 6.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -966 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -170 million, an improvement of 94% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 46 million from the Rs 14 million net cash flows seen during FY20.

SASKEN TECHNOLOGIES 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	1,120	1,193	6.5%
Cash Flow from Investing Activities	Rs m	1,732	-966	-
Cash Flow from Financing Activities	Rs m	-2,817	-170	-
Net Cash Flow	Rs m	14	46	228.7%

Current Valuations for SASKEN TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 76.1, an improvement from the EPS of Rs 52.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 873.3, stands at 11.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 7.9 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	327.1	295.6
TTM Earnings per share	Rs	52.4	76.1
Diluted earnings per share	Rs	52.4	76.1
Price to Cash Flow	x	6.3	7.9
TTM P/E ratio	x	7.2	11.5
Price / Book Value ratio	x	1.8	1.7
Market Cap	Rs m	8,400	9,798
Dividends per share (Unadj.)	Rs	55.0	25.0

Ratio Analysis for SASKEN TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY21, from 2.1x 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 320.4x during FY21, from 159.8x 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 20.3% during FY21, from 16.6% 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 26.6% during FY21, from 23.7% 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 17.4% during FY21, from 13.0% 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	2.1	2.5
Debtors’ Days	Days	691	546
Interest coverage	x	159.8	320.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.0	17.4
Return on equity	%	16.6	20.3
Return on capital employed	%	23.7	26.6

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

SASKEN TECHNOLOGIES Share Price Performance

Over the last one year, SASKEN TECHNOLOGIES share price has moved up from Rs 378.6 to Rs 873.3, registering a gain of Rs 494.7 or around 130.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 26,543.2 (down 0.7%). Over the last one year it has moved up from 12,842.7 to 26,543.2, a gain of 13,701 points (up 106.7%).

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

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

Read: Latest Annual Report Analysis of SASKEN TECHNOLOGIES