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SUDARSHAN CHEMICAL 2020-21 Annual Report Analysis
Wed, 31 Mar

SUDARSHAN CHEMICAL 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.

SUDARSHAN CHEMICAL Income Statement Analysis

  • Operating income during the year rose 9.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 5.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.0% in FY21 as against 15.5% in FY20.
  • Depreciation charges increased by 17.6% and finance costs increased by 22.4% YoY, respectively.
  • Other income grew by 264.0% YoY.
  • Net profit for the year declined by 2.4% YoY.
  • Net profit margins during the year declined from 8.5% in FY20 to 7.6% in FY21.

SUDARSHAN CHEMICAL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 17,086 18,641 9.1%
Other income Rs m 47 170 264.0%
Total Revenues Rs m 17,132 18,812 9.8%
Gross profit Rs m 2,649 2,800 5.7%
Depreciation Rs m 735 865 17.6%
Interest Rs m 164 201 22.4%
Profit before tax Rs m 1,796 1,904 6.0%
Tax Rs m 351 493 40.6%
Profit after tax Rs m 1,445 1,411 -2.4%
Gross profit margin % 15.5 15.0
Effective tax rate % 19.5 25.9
Net profit margin % 8.5 7.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

SUDARSHAN CHEMICAL Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 9 billion as compared to Rs 8 billion in FY20, thereby witnessing an increase of 16.0%.
  • Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY20, a growth of 37.0%.
  • Current assets rose 18% and stood at Rs 11 billion, while fixed assets rose 26% and stood at Rs 12 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 23 billion as against Rs 19 billion during FY20, thereby witnessing a growth of 22%.

SUDARSHAN CHEMICAL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 6,008 7,423 23.6
 
Current Liabilities Rs m 7,897 9,164 16.0
Long-term Debt Rs m 2,250 3,081 37.0
Total Liabilities Rs m 19,009 23,250 22.3
 
Current assets Rs m 9,190 10,887 18.5
Fixed Assets Rs m 9,819 12,364 25.9
Total Assets Rs m 19,009 23,250 22.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SUDARSHAN CHEMICAL Cash Flow Statement Analysis

  • SUDARSHAN CHEMICAL's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 20.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 1 billion, an improvement of 375% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 78 million from the Rs 34 million net cash flows seen during FY20.

SUDARSHAN CHEMICAL 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 2,626 1,652 -37.1%
Cash Flow from Investing Activities Rs m -2,198 -2,658 -
Cash Flow from Financing Activities Rs m -394 1,085 -
Net Cash Flow Rs m 34 78 128.1%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SUDARSHAN CHEMICAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.4, an decline from the EPS of Rs 20.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 518.9, stands at 25.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.4 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 246.8 269.3
TTM Earnings per share Rs 20.9 20.4
Diluted earnings per share Rs 20.9 20.4
Price to Cash Flow x 11.9 14.4
TTM P/E ratio x 17.6 25.5
Price / Book Value ratio x 4.6 4.4
Market Cap Rs m 27,421 32,727
Dividends per share (Unadj.) Rs 6.3 12.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SUDARSHAN CHEMICAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 1.2x 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 deteriorated and stood at 10.5x during FY21, from 11.9x 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 declined and down at 19.0% during FY21, from 24.1% 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 20.0% 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 declined and down at 6.9% during FY21, from 8.5% 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 1.2 1.2
Debtors’ Days Days 778 949
Interest coverage x 11.9 10.5
Debt to equity ratio x 0.4 0.4
Return on assets % 8.5 6.9
Return on equity % 24.1 19.0
Return on capital employed % 23.7 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SUDARSHAN CHEMICAL Share Price Performance

Over the last one year, SUDARSHAN CHEMICAL share price has moved up from Rs 374.1 to Rs 518.9, registering a gain of Rs 144.8 or around 38.7%.

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

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

Annual Report FAQs

What is the current share price of SUDARSHAN CHEMICAL?

SUDARSHAN CHEMICAL currently trades at Rs 609.7 per share. You can check out the latest share price performance of SUDARSHAN CHEMICAL here...

What was the revenue of SUDARSHAN CHEMICAL in FY21? How does it compare to earlier years?

The revenues of SUDARSHAN CHEMICAL stood at Rs 18,812 m in FY21, which was up 9.8% compared to Rs 17,132 m reported in FY20.

SUDARSHAN CHEMICAL's revenue has grown from Rs 14,009 m in FY17 to Rs 18,812 m in FY21.

Over the past 5 years, the revenue of SUDARSHAN CHEMICAL has grown at a CAGR of 7.6%.

What was the net profit of SUDARSHAN CHEMICAL in FY21? How does it compare to earlier years?

The net profit of SUDARSHAN CHEMICAL stood at Rs 1,411 m in FY21, which was down -2.4% compared to Rs 1,445 m reported in FY20.

This compares to a net profit of Rs 1,351 m in FY19 and a net profit of Rs 847 m in FY18.

Over the past 5 years, SUDARSHAN CHEMICAL net profit has grown at a CAGR of 8.6%.

What does the cash flow statement of SUDARSHAN CHEMICAL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of SUDARSHAN CHEMICAL reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 1,652 m as compared to Rs 2,626 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -2,658 m as compared to Rs -2,198 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 1,085 m as compared to Rs -394 m in FY20.

Here's the cash flow statement of SUDARSHAN CHEMICAL for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations1,6331,4767102,6261,652
From Investments-1,352-873-265-2,198-2,658
From Financial Activity-383-625-476-3941,085
Net Cashflow-102-22-323478

What does the Key Ratio analysis of SUDARSHAN CHEMICAL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of SUDARSHAN CHEMICAL reveals:

  • Operating profit margins witnessed a fall and stood at 15.0% in FY21 as against 15.5% in FY20.
  • Net profit margins declined from 8.5% in FY20 to 7.6% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.4 as compared to 0.4 in FY20.

Here's the ratio/financial analysis of SUDARSHAN CHEMICAL for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)14.812.817.015.515.0
Net Profit Margin (%)7.35.28.18.57.6
Debt to Equity Ratio (x)0.40.40.20.40.4

Read: Latest Annual Report Analysis of SUDARSHAN CHEMICAL

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