SANGHVI MOVERS 2021-22 Annual Report Analysis

Mon, 22 Aug

SANGHVI MOVERS 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.

SANGHVI MOVERS Income Statement Analysis

• Operating income during the year rose 49.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 58.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 41.1% in FY22 as against 39.0% in FY21.
• Depreciation charges decreased by 3.3% and finance costs decreased by 34.2% YoY, respectively.
• Other income grew by 26.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 10.0% in FY21 to 8.8% in FY22.

SANGHVI MOVERS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,237	3,353	49.8%
Other income	Rs m	293	370	26.3%
Total Revenues	Rs m	2,530	3,723	47.1%
Gross profit	Rs m	872	1,379	58.2%
Depreciation	Rs m	1,221	1,181	-3.3%
Interest	Rs m	263	173	-34.2%
Profit before tax	Rs m	-320	395	NA
Tax	Rs m	-95	101	NA
Profit after tax	Rs m	-224	294	NA
Gross profit margin	%	39.0	41.1
Effective tax rate	%	29.8	25.5
Net profit margin	%	-10.0	8.8

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SANGHVI MOVERS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 933 million as compared to Rs 907 million in FY21, thereby witnessing an increase of 2.9%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY21, a fall of 19.7%.
• Current assets rose 61% and stood at Rs 2 billion, while fixed assets fell 7% and stood at Rs 8 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 10 billion as against Rs 10 billion during FY21, thereby witnessing a growth of 1%.

SANGHVI MOVERS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,090	7,339	3.5
Current Liabilities	Rs m	907	933	2.9
Long-term Debt	Rs m	1,489	1,196	-19.7
Total Liabilities	Rs m	9,576	9,642	0.7
Current assets	Rs m	1,111	1,785	60.6
Fixed Assets	Rs m	8,465	7,857	-7.2
Total Assets	Rs m	9,576	9,642	0.7

SANGHVI MOVERS Cash Flow Statement Analysis

• SANGHVI MOVERS's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion, an improvement of 9.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -809 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -481 million, an improvement of 66% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 9 million from the Rs -18 million net cash flows seen during FY21.

SANGHVI MOVERS 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	1,189	1,299	9.3%
Cash Flow from Investing Activities	Rs m	206	-809	-
Cash Flow from Financing Activities	Rs m	-1,413	-481	-
Net Cash Flow	Rs m	-18	9	-

Current Valuations for SANGHVI MOVERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.8, an improvement from the EPS of Rs -5.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 260.2, stands at 24.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at 5.3 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	51.7	77.4
TTM Earnings per share	Rs	-5.2	6.8
Diluted earnings per share	Rs	-5.2	6.8
Price to Cash Flow	x	4.3	5.3
TTM P/E ratio	x	-19.3	24.3
Price / Book Value ratio	x	0.5	1.1
Market Cap	Rs m	3,707	7,846
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for SANGHVI MOVERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x 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 3.3x during FY22, from -0.2x 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 improved and stood at 4.0% during FY22, from -3.2% 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 improved and stood at 6.7% during FY22, from -0.7% 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 4.8% during FY22, from 0.4% 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	1.9
Debtors’ Days	Days	1,329	1,318
Interest coverage	x	-0.2	3.3
Debt to equity ratio	x	0.2	0.2
Return on assets	%	0.4	4.8
Return on equity	%	-3.2	4.0
Return on capital employed	%	-0.7	6.7

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 179.7 to Rs 260.2, registering a gain of Rs 80.5 or around 44.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 31,201.8 (down 0.9%). Over the last one year it has moved up from 23,548.5 to 31,201.8, a gain of 7,653 points (up 32.5%).

Overall, the S&P BSE SENSEX is up 5.9% 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