SASKEN TECHNOLOGIES 2021-22 Annual Report Analysis

Wed, 29 Jun

SASKEN TECHNOLOGIES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

SASKEN TECHNOLOGIES Income Statement Analysis

• Operating income during the year fell 2.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.7% in FY22 as against 28.9% in FY21.
• Depreciation charges decreased by 36.0% and finance costs decreased by 90.4% YoY, respectively.
• Other income grew by 11.9% YoY.
• Net profit for the year grew by 12.0% YoY.
• Net profit margins during the year grew from 25.8% in FY21 to 29.6% in FY22.

SASKEN TECHNOLOGIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	4,448	4,339	-2.5%
Other income	Rs m	316	353	11.9%
Total Revenues	Rs m	4,764	4,692	-1.5%
Gross profit	Rs m	1,286	1,291	0.4%
Depreciation	Rs m	102	65	-36.0%
Interest	Rs m	5	0	-90.4%
Profit before tax	Rs m	1,495	1,579	5.6%
Tax	Rs m	349	296	-15.3%
Profit after tax	Rs m	1,145	1,282	12.0%
Gross profit margin	%	28.9	29.7
Effective tax rate	%	23.4	18.8
Net profit margin	%	25.8	29.6

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SASKEN TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 978 million in FY21, thereby witnessing an increase of 12.5%.
• Current assets fell 26% and stood at Rs 2 billion, while fixed assets rose 39% and stood at Rs 6 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 8 billion as against Rs 7 billion during FY21, thereby witnessing a growth of 15%.

SASKEN TECHNOLOGIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,641	6,523	15.6
Current Liabilities	Rs m	978	1,100	12.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,627	7,627	15.1
Current assets	Rs m	2,442	1,797	-26.4
Fixed Assets	Rs m	4,185	5,830	39.3
Total Assets	Rs m	6,627	7,627	15.1

SASKEN TECHNOLOGIES Cash Flow Statement Analysis

• SASKEN TECHNOLOGIES's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -691 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -392 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -22 million from the Rs 46 million net cash flows seen during FY21.

SASKEN TECHNOLOGIES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,193	1,070	-10.3%
Cash Flow from Investing Activities	Rs m	-966	-691	-
Cash Flow from Financing Activities	Rs m	-170	-392	-
Net Cash Flow	Rs m	46	-22	-

Current Valuations for SASKEN TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 85.2, an improvement from the EPS of Rs 76.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 774.1, stands at 9.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 13.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	295.6	288.3
TTM Earnings per share	Rs	76.1	85.2
Diluted earnings per share	Rs	76.1	85.2
Price to Cash Flow	x	10.5	13.2
TTM P/E ratio	x	11.5	9.1
Price / Book Value ratio	x	1.7	2.7
Market Cap	Rs m	9,798	17,844
Dividends per share (Unadj.)	Rs	25.0	25.0

Ratio Analysis for SASKEN TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY22, from 2.5x during FY21. 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 3,508.8x during FY22, from 320.4x during FY21. 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 declined and down at 19.7% during FY22, from 20.3% during FY22. 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 24.2% during FY22, from 26.6% during FY21. 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 16.8% during FY22, from 17.4% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.5	1.6
Debtors’ Days	Days	546	687
Interest coverage	x	320.4	3,508.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.4	16.8
Return on equity	%	20.3	19.7
Return on capital employed	%	26.6	24.2

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 down from Rs 1,018.5 to Rs 774.1, registering a loss of Rs 244.4 or around 24.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 28,552.8 (down 1.0%). Over the last one year it has moved down from 29,875.1 to 28,552.8, a loss of 1,322 points (down 4.4%).

Overall, the S&P BSE SENSEX is up 0.6% 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