SANGHVI MOVERS 2020-21 Annual Report Analysis

Wed, 31 Mar

SANGHVI MOVERS 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.

SANGHVI MOVERS Income Statement Analysis

• Operating income during the year fell 30.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 44.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 39.0% in FY21 as against 48.5% in FY20.
• Depreciation charges decreased by 13.0% and finance costs decreased by 35.9% YoY, respectively.
• Other income grew by 774.9% YoY.
• Net profit for the year grew by 239.6% YoY.
• Net profit margins during the year declined from 2.0% in FY20 to 10.0% in FY21.

SANGHVI MOVERS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,229	2,239	-30.7%
Other income	Rs m	33	291	774.9%
Total Revenues	Rs m	3,262	2,530	-22.4%
Gross profit	Rs m	1,567	873	-44.3%
Depreciation	Rs m	1,404	1,221	-13.0%
Interest	Rs m	410	263	-35.9%
Profit before tax	Rs m	-214	-320	49.6%
Tax	Rs m	-148	-95	-35.4%
Profit after tax	Rs m	-66	-224	239.6%
Gross profit margin	%	48.5	39.0
Effective tax rate	%	69.1	29.8
Net profit margin	%	-2.0	-10.0

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SANGHVI MOVERS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 907 million as compared to Rs 1 billion in FY20, thereby witnessing an decrease of -35.7%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY20, a fall of 28.5%.
• Current assets rose 1% and stood at Rs 1 billion, while fixed assets fell 14% and stood at Rs 8 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 10 billion as against Rs 11 billion during FY20, thereby witnessing a fall of 12%.

SANGHVI MOVERS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,264	7,090	-2.4
Current Liabilities	Rs m	1,410	907	-35.7
Long-term Debt	Rs m	2,083	1,489	-28.5
Total Liabilities	Rs m	10,924	9,576	-12.3
Current assets	Rs m	1,096	1,111	1.4
Fixed Assets	Rs m	9,828	8,465	-13.9
Total Assets	Rs m	10,924	9,576	-12.3

SANGHVI MOVERS Cash Flow Statement Analysis

• SANGHVI MOVERS's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 206 million, an improvement of 120.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion, an improvement of 19% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -18 million from the Rs -11 million net cash flows seen during FY20.

SANGHVI MOVERS 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	1,632	1,189	-27.1%
Cash Flow from Investing Activities	Rs m	94	206	120.4%
Cash Flow from Financing Activities	Rs m	-1,737	-1,413	-
Net Cash Flow	Rs m	-11	-18	-

Current Valuations for SANGHVI MOVERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.2, an decline from the EPS of Rs -1.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 99.9, stands at -19.3 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 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 3.7 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	74.6	51.7
TTM Earnings per share	Rs	-1.5	-5.2
Diluted earnings per share	Rs	-1.5	-5.2
Price to Cash Flow	x	1.6	3.7
TTM P/E ratio	x	-32.1	-19.3
Price / Book Value ratio	x	0.6	0.5
Market Cap	Rs m	4,052	3,707
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SANGHVI MOVERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 0.8x 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 deteriorated and stood at -0.2x during FY21, from 0.5x 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 -3.2% during FY21, from -0.9% 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 -0.7% during FY21, from 2.1% 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 0.4% during FY21, from 3.2% 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	0.8	1.2
Debtors’ Days	Days	703	922
Interest coverage	x	0.5	-0.2
Debt to equity ratio	x	0.3	0.2
Return on assets	%	3.2	0.4
Return on equity	%	-0.9	-3.2
Return on capital employed	%	2.1	-0.7

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

SANGHVI MOVERS Share Price Performance

Over the last one year, SANGHVI MOVERS share price has moved up from Rs 49.0 to Rs 99.9, registering a gain of Rs 50.9 or around 104.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

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

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

Read: Latest Annual Report Analysis of SANGHVI MOVERS