SHAILY ENG 2021-22 Annual Report Analysis

Thu, 8 Sep

SHAILY ENG 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.

SHAILY ENG Income Statement Analysis

• Operating income during the year rose 57.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.5% in FY22 as against 16.7% in FY21.
• Depreciation charges increased by 35.9% and finance costs increased by 34.5% YoY, respectively.
• Other income grew by 242.0% YoY.
• Net profit for the year grew by 60.1% YoY.
• Net profit margins during the year grew from 6.1% in FY21 to 6.2% in FY22.

SHAILY ENG Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	3,606	5,677	57.4%
Other income	Rs m	26	88	242.0%
Total Revenues	Rs m	3,632	5,765	58.7%
Gross profit	Rs m	604	825	36.6%
Depreciation	Rs m	195	265	35.9%
Interest	Rs m	135	182	34.5%
Profit before tax	Rs m	299	465	55.7%
Tax	Rs m	79	113	43.3%
Profit after tax	Rs m	220	353	60.1%
Gross profit margin	%	16.7	14.5
Effective tax rate	%	26.3	24.2
Net profit margin	%	6.1	6.2

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SHAILY ENG Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 33.1%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY21, a fall of 20.9%.
• Current assets rose 70% and stood at Rs 3 billion, while fixed assets rose 30% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 7 billion as against Rs 5 billion during FY21, thereby witnessing a growth of 45%.

SHAILY ENG Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,819	3,670	101.8
Current Liabilities	Rs m	1,425	1,896	33.1
Long-term Debt	Rs m	1,284	1,016	-20.9
Total Liabilities	Rs m	4,670	6,772	45.0
Current assets	Rs m	1,768	3,002	69.8
Fixed Assets	Rs m	2,902	3,770	29.9
Total Assets	Rs m	4,670	6,772	45.0

SHAILY ENG Cash Flow Statement Analysis

• SHAILY ENG's cash flow from operating activities (CFO) during FY22 stood at Rs 550 million, an improvement of 144.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 57.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 1 billion, an improvement of 103% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 342 million from the Rs -60 million net cash flows seen during FY21.

SHAILY ENG 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	225	550	144.9%
Cash Flow from Investing Activities	Rs m	-819	-1,291	-
Cash Flow from Financing Activities	Rs m	534	1,083	102.8%
Net Cash Flow	Rs m	-60	342	-

Current Valuations for SHAILY ENG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.5, an improvement from the EPS of Rs 26.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,945.0, stands at 48.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 23.2 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	433.4	619.1
TTM Earnings per share	Rs	26.5	38.5
Diluted earnings per share	Rs	24.0	38.4
Price to Cash Flow	x	22.2	23.2
TTM P/E ratio	x	74.9	48.6
Price / Book Value ratio	x	2.8	3.9
Market Cap	Rs m	5,136	14,358
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHAILY ENG

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY22, from 1.2x 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 3.6x during FY22, from 3.2x 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 9.6% during FY22, from 12.1% 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 13.8% during FY22, from 14.0% 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 improved and stood at 7.9% during FY22, from 7.6% 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	1.2	1.6
Debtors’ Days	Days	704	654
Interest coverage	x	3.2	3.6
Debt to equity ratio	x	0.7	0.3
Return on assets	%	7.6	7.9
Return on equity	%	12.1	9.6
Return on capital employed	%	14.0	13.8

To see how SHAILY ENG has performed over the last 5 years, please visit here.

SHAILY ENG Share Price Performance

Over the last one year, SHAILY ENG share price has moved up from Rs 1,896.8 to Rs 1,945.0, registering a gain of Rs 48.2 or around 2.5%.

Overall, the S&P BSE SENSEX is up 2.4% over the year.

(To know more, check out historical annual results for SHAILY ENG and quarterly results for SHAILY ENG)

Read: Latest Annual Report Analysis of SHAILY ENG