SHALBY 2020-21 Annual Report Analysis

Wed, 31 Mar

SHALBY 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.

SHALBY Income Statement Analysis

• Operating income during the year fell 11.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.3% in FY21 as against 17.0% in FY20.
• Depreciation charges increased by 2.2% and finance costs decreased by 38.8% YoY, respectively.
• Other income declined by 47.8% YoY.
• Net profit for the year grew by 53.6% YoY.
• Net profit margins during the year grew from 5.7% in FY20 to 9.8% in FY21.

SHALBY Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	4,869	4,309	-11.5%
Other income	Rs m	174	91	-47.8%
Total Revenues	Rs m	5,042	4,400	-12.7%
Gross profit	Rs m	828	873	5.5%
Depreciation	Rs m	360	368	2.2%
Interest	Rs m	74	45	-38.8%
Profit before tax	Rs m	567	551	-2.9%
Tax	Rs m	291	127	-56.4%
Profit after tax	Rs m	276	424	53.6%
Gross profit margin	%	17.0	20.3
Effective tax rate	%	51.4	23.1
Net profit margin	%	5.7	9.8

Act Before 11:59pm: Last Day to SAVE 80% on Our Midcap Stocks Research

SHALBY Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 818 million as compared to Rs 833 million in FY20, thereby witnessing an decrease of -1.8%.
• Long-term debt down at Rs 355 million as compared to Rs 487 million during FY20, a fall of 27.1%.
• Current assets rose 16% and stood at Rs 3 billion, while fixed assets rose 0% and stood at Rs 8 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 11 billion as against Rs 10 billion during FY20, thereby witnessing a growth of 4%.

SHALBY Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,992	8,346	4.4
Current Liabilities	Rs m	833	818	-1.8
Long-term Debt	Rs m	487	355	-27.1
Total Liabilities	Rs m	10,269	10,665	3.9
Current assets	Rs m	2,337	2,712	16.0
Fixed Assets	Rs m	7,931	7,953	0.3
Total Assets	Rs m	10,269	10,665	3.9

SHALBY Cash Flow Statement Analysis

• SHALBY 's cash flow from operating activities (CFO) during FY21 stood at Rs 843 million, an improvement of 52.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -570 million, an improvement of 85.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -294 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -20 million from the Rs 32 million net cash flows seen during FY20.

SHALBY 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	554	843	52.3%
Cash Flow from Investing Activities	Rs m	-307	-570	-
Cash Flow from Financing Activities	Rs m	-215	-294	-
Net Cash Flow	Rs m	32	-20	-

Current Valuations for SHALBY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.9, an improvement from the EPS of Rs 2.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 100.9, stands at 25.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 12.1 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	45.1	39.9
TTM Earnings per share	Rs	2.6	3.9
Diluted earnings per share	Rs	2.6	3.9
Price to Cash Flow	x	7.9	12.1
TTM P/E ratio	x	18.1	25.7
Price / Book Value ratio	x	1.3	1.1
Market Cap	Rs m	10,185	9,586
Dividends per share (Unadj.)	Rs	0.5	1.0

Ratio Analysis for SHALBY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.3x during FY21, from 2.8x 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 13.1x during FY21, from 8.7x 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 improved and stood at 5.1% during FY21, from 3.5% 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 6.8% during FY21, from 7.6% 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 improved and stood at 4.4% during FY21, from 3.4% 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	2.8	3.3
Debtors’ Days	Days	71	74
Interest coverage	x	8.7	13.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	3.4	4.4
Return on equity	%	3.5	5.1
Return on capital employed	%	7.6	6.8

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

SHALBY Share Price Performance

Over the last one year, SHALBY share price has moved up from Rs 46.3 to Rs 100.9, registering a gain of Rs 54.6 or around 117.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

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

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

Read: Latest Annual Report Analysis of SHALBY