SANDHAR TECHNOLOGIES 2020-21 Annual Report Analysis

Wed, 31 Mar

SANDHAR 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.

SANDHAR TECHNOLOGIES Income Statement Analysis

• Operating income during the year fell 4.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.1% in FY21 as against 10.1% in FY20.
• Depreciation charges decreased by 4.5% and finance costs decreased by 21.7% YoY, respectively.
• Other income grew by 2.2% YoY.
• Net profit for the year grew by 3.8% YoY.
• Net profit margins during the year grew from 3.4% in FY20 to 3.7% in FY21.

SANDHAR TECHNOLOGIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	19,434	18,636	-4.1%
Other income	Rs m	110	112	2.2%
Total Revenues	Rs m	19,544	18,748	-4.1%
Gross profit	Rs m	1,955	1,880	-3.8%
Depreciation	Rs m	984	939	-4.5%
Interest	Rs m	205	160	-21.7%
Profit before tax	Rs m	875	892	1.9%
Tax	Rs m	211	202	-4.2%
Profit after tax	Rs m	665	690	3.8%
Gross profit margin	%	10.1	10.1
Effective tax rate	%	24.1	22.6
Net profit margin	%	3.4	3.7

Must See: Do You Invest in Midcap Stocks? Here's a Great News for You

SANDHAR TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 6 billion as compared to Rs 5 billion in FY20, thereby witnessing an increase of 18.5%.
• Long-term debt stood at Rs 993 million as compared to Rs 92 million during FY20, a growth of 977.5%.
• Current assets rose 51% and stood at Rs 7 billion, while fixed assets rose 1% and stood at Rs 9 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 16 billion as against Rs 14 billion during FY20, thereby witnessing a growth of 17%.

SANDHAR TECHNOLOGIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,625	8,044	5.5
Current Liabilities	Rs m	4,989	5,912	18.5
Long-term Debt	Rs m	92	993	977.5
Total Liabilities	Rs m	13,659	15,959	16.8
Current assets	Rs m	4,410	6,638	50.5
Fixed Assets	Rs m	9,249	9,321	0.8
Total Assets	Rs m	13,659	15,959	16.8

SANDHAR TECHNOLOGIES Cash Flow Statement Analysis

• SANDHAR TECHNOLOGIES's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -974 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -262 million, an improvement of 79% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -7 million from the Rs 30 million net cash flows seen during FY20.

SANDHAR 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	2,390	1,237	-48.2%
Cash Flow from Investing Activities	Rs m	-1,009	-974	-
Cash Flow from Financing Activities	Rs m	-1,244	-262	-
Net Cash Flow	Rs m	30	-7	-

Current Valuations for SANDHAR TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.5, an improvement from the EPS of Rs 11.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 205.7, stands at 17.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 7.4 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	322.9	309.6
TTM Earnings per share	Rs	11.0	11.5
Diluted earnings per share	Rs	11.0	11.5
Price to Cash Flow	x	4.7	7.4
TTM P/E ratio	x	11.7	17.9
Price / Book Value ratio	x	1.7	1.5
Market Cap	Rs m	13,107	12,100
Dividends per share (Unadj.)	Rs	2.0	2.3

Ratio Analysis for SANDHAR TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x 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 6.6x during FY21, from 5.3x 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 declined and down at 8.6% during FY21, from 8.7% 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 11.6% during FY21, from 14.0% 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 5.3% during FY21, from 6.4% 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	1.1
Debtors’ Days	Days	360	700
Interest coverage	x	5.3	6.6
Debt to equity ratio	x	0.0	0.1
Return on assets	%	6.4	5.3
Return on equity	%	8.7	8.6
Return on capital employed	%	14.0	11.6

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

SANDHAR TECHNOLOGIES Share Price Performance

Over the last one year, SANDHAR TECHNOLOGIES share price has moved up from Rs 128.7 to Rs 205.7, registering a gain of Rs 77.0 or around 59.8%.

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

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

Read: Latest Annual Report Analysis of SANDHAR TECHNOLOGIES