SVP GLOBAL 2020-21 Annual Report Analysis

Wed, 31 Mar

SVP GLOBAL 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.

SVP GLOBAL Income Statement Analysis

• Operating income during the year fell 6.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 58.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.9% in FY21 as against 13.2% in FY20.
• Depreciation charges decreased by 0.8% and finance costs decreased by 3.2% YoY, respectively.
• Other income grew by 81.3% YoY.
• Net profit for the year declined by 51.4% YoY.
• Net profit margins during the year declined from 3.8% in FY20 to 2.0% in FY21.

SVP GLOBAL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	13,555	12,625	-6.9%
Other income	Rs m	882	1,599	81.3%
Total Revenues	Rs m	14,437	14,224	-1.5%
Gross profit	Rs m	1,786	743	-58.4%
Depreciation	Rs m	847	840	-0.8%
Interest	Rs m	1,292	1,251	-3.2%
Profit before tax	Rs m	528	250	-52.6%
Tax	Rs m	17	2	-89.6%
Profit after tax	Rs m	511	249	-51.4%
Gross profit margin	%	13.2	5.9
Effective tax rate	%	3.2	0.7
Net profit margin	%	3.8	2.0

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SVP GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 9 billion as compared to Rs 11 billion in FY20, thereby witnessing an decrease of -11.8%.
• Long-term debt down at Rs 17 billion as compared to Rs 17 billion during FY20, a fall of 3.3%.
• Current assets fell 11% and stood at Rs 15 billion, while fixed assets rose 8% and stood at Rs 23 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 39 billion as against Rs 39 billion during FY20, thereby witnessing a fall of 0%.

SVP GLOBAL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	8,519	9,097	6.8
Current Liabilities	Rs m	10,610	9,361	-11.8
Long-term Debt	Rs m	17,350	16,775	-3.3
Total Liabilities	Rs m	38,772	38,677	-0.2
Current assets	Rs m	17,112	15,237	-11.0
Fixed Assets	Rs m	21,660	23,440	8.2
Total Assets	Rs m	38,772	38,677	-0.2

SVP GLOBAL Cash Flow Statement Analysis

• SVP GLOBAL's cash flow from operating activities (CFO) during FY21 stood at Rs 850 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 709 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -1 billion from the Rs 1 billion net cash flows seen during FY20.

SVP GLOBAL 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	-2,407	850	-
Cash Flow from Investing Activities	Rs m	-9,622	-2,617	-
Cash Flow from Financing Activities	Rs m	13,089	709	-94.6%
Net Cash Flow	Rs m	1,060	-1,058	-

Current Valuations for SVP GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.0, an decline from the EPS of Rs 40.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 68.6, stands at 34.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 53.3 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	1,071.5	99.8
TTM Earnings per share	Rs	40.4	2.0
Diluted earnings per share	Rs	4.0	2.0
Price to Cash Flow	x	27.8	53.3
TTM P/E ratio	x	74.2	34.9
Price / Book Value ratio	x	0.5	6.4
Market Cap	Rs m	4,295	58,035
Dividends per share (Unadj.)	Rs	0.0	0.1

Ratio Analysis for SVP GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY21, from 1.6x 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 1.2x during FY21, from 1.4x 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 2.7% during FY21, from 6.0% 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 5.8% during FY21, from 7.0% 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 3.9% during FY21, from 4.7% 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	1.6	1.6
Debtors’ Days	Days	195,579,931	159,978,986
Interest coverage	x	1.4	1.2
Debt to equity ratio	x	2.0	1.8
Return on assets	%	4.7	3.9
Return on equity	%	6.0	2.7
Return on capital employed	%	7.0	5.8

To see how SVP GLOBAL has performed over the last 5 years, please visit here.

SVP GLOBAL Share Price Performance

Over the last one year, SVP GLOBAL share price has moved down from Rs 298.2 to Rs 68.6, registering a loss of Rs 229.6 or around 77.0%.

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

(To know more, check out historical annual results for SVP GLOBAL and quarterly results for SVP GLOBAL)