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SHIPPING CORP 2020-21 Annual Report Analysis
Wed, 31 Mar

SHIPPING CORP 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.

SHIPPING CORP Income Statement Analysis

  • Operating income during the year fell 16.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 1.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.3% in FY21 as against 25.8% in FY20.
  • Depreciation charges decreased by 6.5% and finance costs decreased by 94.0% YoY, respectively.
  • Other income declined by 48.3% YoY.
  • Net profit for the year grew by 104.4% YoY.
  • Net profit margins during the year grew from 6.8% in FY20 to 16.7% in FY21.

SHIPPING CORP Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 44,254 37,033 -16.3%
Other income Rs m 2,430 1,256 -48.3%
Total Revenues Rs m 46,684 38,289 -18.0%
Gross profit Rs m 11,425 11,589 1.4%
Depreciation Rs m 6,713 6,279 -6.5%
Interest Rs m 3,667 220 -94.0%
Profit before tax Rs m 3,475 6,345 82.6%
Tax Rs m 452 167 -63.1%
Profit after tax Rs m 3,023 6,179 104.4%
Gross profit margin % 25.8 31.3
Effective tax rate % 13.0 2.6
Net profit margin % 6.8 16.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SHIPPING CORP Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 24 billion as compared to Rs 46 billion in FY20, thereby witnessing an decrease of -47.1%.
  • Long-term debt stood at Rs 27 billion as compared to Rs 17 billion during FY20, a growth of 58.8%.
  • Current assets fell 6% and stood at Rs 23 billion, while fixed assets fell 3% and stood at Rs 111 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 134 billion as against Rs 139 billion during FY20, thereby witnessing a fall of 4%.

SHIPPING CORP Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 74,837 81,675 9.1
 
Current Liabilities Rs m 45,933 24,294 -47.1
Long-term Debt Rs m 16,774 26,638 58.8
Total Liabilities Rs m 139,186 134,027 -3.7
 
Current assets Rs m 24,411 23,024 -5.7
Fixed Assets Rs m 114,776 111,003 -3.3
Total Assets Rs m 139,186 134,027 -3.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SHIPPING CORP Cash Flow Statement Analysis

  • SHIPPING CORP's cash flow from operating activities (CFO) during FY21 stood at Rs 13 billion, an improvement of 41.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -12 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -200 million from the Rs 1 billion net cash flows seen during FY20.

SHIPPING CORP 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 9,447 13,402 41.9%
Cash Flow from Investing Activities Rs m 3,192 -2,065 -
Cash Flow from Financing Activities Rs m -11,197 -11,544 -
Net Cash Flow Rs m 1,494 -200 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SHIPPING CORP

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.3, an improvement from the EPS of Rs 6.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 110.8, stands at 8.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.2 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 95.0 79.5
TTM Earnings per share Rs 6.5 13.3
Diluted earnings per share Rs 6.5 13.3
Price to Cash Flow x 1.8 3.2
TTM P/E ratio x 5.8 8.3
Price / Book Value ratio x 0.3 0.5
Market Cap Rs m 22,044 39,651
Dividends per share (Unadj.) Rs 0.8 0.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SHIPPING CORP

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.9x during FY21, from 0.5x 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 29.8x during FY21, from 1.9x 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 improved and stood at 7.6% during FY21, from 4.0% 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 6.1% during FY21, from 7.8% 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 4.8% during FY21, from 4.8% 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 0.5 0.9
Debtors’ Days Days 500 621
Interest coverage x 1.9 29.8
Debt to equity ratio x 0.2 0.3
Return on assets % 4.8 4.8
Return on equity % 4.0 7.6
Return on capital employed % 7.8 6.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SHIPPING CORP Share Price Performance

Over the last one year, SHIPPING CORP share price has moved up from Rs 37.6 to Rs 110.8, registering a gain of Rs 73.2 or around 194.9%.

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

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

Annual Report FAQs

What is the current share price of SHIPPING CORP?

SHIPPING CORP currently trades at Rs 208.9 per share. You can check out the latest share price performance of SHIPPING CORP here...

What was the revenue of SHIPPING CORP in FY21? How does it compare to earlier years?

The revenues of SHIPPING CORP stood at Rs 38,289 m in FY21, which was down -18.0% compared to Rs 46,684 m reported in FY20.

SHIPPING CORP's revenue has grown from Rs 36,036 m in FY17 to Rs 38,289 m in FY21.

Over the past 5 years, the revenue of SHIPPING CORP has grown at a CAGR of 1.5%.

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

The net profit of SHIPPING CORP stood at Rs 6,179 m in FY21, which was up 104.4% compared to Rs 3,023 m reported in FY20.

This compares to a net loss of Rs -1,220 m in FY19 and a net profit of Rs 2,538 m in FY18.

Over the past 5 years, SHIPPING CORP net profit has grown at a CAGR of 44.4%.

What does the cash flow statement of SHIPPING CORP 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 SHIPPING CORP reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 13,402 m as compared to Rs 9,447 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -2,065 m as compared to Rs 3,192 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -11,544 m as compared to Rs -11,197 m in FY20.

Here's the cash flow statement of SHIPPING CORP for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations6,8252,2847,1259,44713,402
From Investments-858-4,7081243,192-2,065
From Financial Activity-5,224-871-8,659-11,197-11,544
Net Cashflow745-3,295-1,4641,494-200

What does the Key Ratio analysis of SHIPPING CORP 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 SHIPPING CORP reveals:

  • Operating profit margins witnessed a fall and down at 31.3% in FY21 as against 25.8% in FY20.
  • Net profit margins grew from 6.8% in FY20 to 16.7% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.3 as compared to 0.2 in FY20.

Here's the ratio/financial analysis of SHIPPING CORP for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)22.319.318.425.831.3
Net Profit Margin (%)4.17.3-3.16.816.7
Debt to Equity Ratio (x)0.40.50.40.20.3

Read: Latest Annual Report Analysis of SHIPPING CORP

 

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