SKIPPER 2020-21 Annual Report Analysis

Wed, 31 Mar

SKIPPER 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.

SKIPPER Income Statement Analysis

• Operating income during the year rose 13.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 16.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.4% in FY21 as against 10.0% in FY20.
• Depreciation charges increased by 18.8% and finance costs decreased by 13.5% YoY, respectively.
• Other income grew by 1525.0% YoY.
• Net profit for the year declined by 49.2% YoY.
• Net profit margins during the year declined from 3.0% in FY20 to 1.3% in FY21.

SKIPPER Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	13,905	15,815	13.7%
Other income	Rs m	20	319	1,525.0%
Total Revenues	Rs m	13,925	16,134	15.9%
Gross profit	Rs m	1,397	1,173	-16.0%
Depreciation	Rs m	381	453	18.8%
Interest	Rs m	854	739	-13.5%
Profit before tax	Rs m	182	301	65.2%
Tax	Rs m	-233	90	-138.9%
Profit after tax	Rs m	415	211	-49.2%
Gross profit margin	%	10.0	7.4
Effective tax rate	%	-127.6	30.0
Net profit margin	%	3.0	1.3

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SKIPPER Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 9 billion as compared to Rs 8 billion in FY20, thereby witnessing an increase of 9.2%.
• Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY20, a growth of 63.4%.
• Current assets rose 16% and stood at Rs 12 billion, while fixed assets rose 6% and stood at Rs 7 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 19 billion as against Rs 17 billion during FY20, thereby witnessing a growth of 12%.

SKIPPER Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,873	7,078	3.0
Current Liabilities	Rs m	8,269	9,029	9.2
Long-term Debt	Rs m	1,569	2,563	63.4
Total Liabilities	Rs m	17,128	19,193	12.1
Current assets	Rs m	10,508	12,161	15.7
Fixed Assets	Rs m	6,621	7,032	6.2
Total Assets	Rs m	17,128	19,193	12.1

SKIPPER Cash Flow Statement Analysis

• SKIPPER's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 151.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -807 million, an improvement of 51% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 0 million from the Rs 3 million net cash flows seen during FY20.

SKIPPER 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	2,145	2,085	-2.8%
Cash Flow from Investing Activities	Rs m	-508	-1,278	-
Cash Flow from Financing Activities	Rs m	-1,634	-807	-
Net Cash Flow	Rs m	3	0	-83.3%

Current Valuations for SKIPPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.1, an decline from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 60.7, stands at 29.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 7.2 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	135.4	154.0
TTM Earnings per share	Rs	4.0	2.1
Diluted earnings per share	Rs	4.0	2.1
Price to Cash Flow	x	2.4	7.2
TTM P/E ratio	x	4.7	29.5
Price / Book Value ratio	x	0.7	0.7
Market Cap	Rs m	4,633	4,764
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for SKIPPER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.3x 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 1.4x during FY21, from 1.2x 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 3.0% 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 10.8% during FY21, from 12.3% 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 4.9% during FY21, from 7.4% 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	1.3	1.3
Debtors’ Days	Days	115	109
Interest coverage	x	1.2	1.4
Debt to equity ratio	x	0.2	0.4
Return on assets	%	7.4	4.9
Return on equity	%	6.0	3.0
Return on capital employed	%	12.3	10.8

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

SKIPPER Share Price Performance

Over the last one year, SKIPPER share price has moved up from Rs 19.0 to Rs 60.7, registering a gain of Rs 41.7 or around 220.1%.

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 SKIPPER and quarterly results for SKIPPER)

Read: Latest Annual Report Analysis of SKIPPER