SKIPPER 2021-22 Annual Report Analysis

Tue, 2 Aug

SKIPPER 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.

SKIPPER Income Statement Analysis

• Operating income during the year rose 7.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.7% in FY22 as against 7.4% in FY21.
• Depreciation charges increased by 7.1% and finance costs increased by 26.6% YoY, respectively.
• Other income declined by 27.8% YoY.
• Net profit for the year grew by 35.7% YoY.
• Net profit margins during the year grew from 1.3% in FY21 to 1.7% in FY22.

SKIPPER Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	15,815	17,071	7.9%
Other income	Rs m	319	231	-27.8%
Total Revenues	Rs m	16,134	17,302	7.2%
Gross profit	Rs m	1,173	1,493	27.3%
Depreciation	Rs m	453	485	7.1%
Interest	Rs m	739	935	26.6%
Profit before tax	Rs m	301	303	0.8%
Tax	Rs m	90	17	-80.8%
Profit after tax	Rs m	211	286	35.7%
Gross profit margin	%	7.4	8.7
Effective tax rate	%	30.0	5.7
Net profit margin	%	1.3	1.7

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SKIPPER Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 11 billion as compared to Rs 9 billion in FY21, thereby witnessing an increase of 20.0%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY21, a fall of 17.3%.
• Current assets rose 14% and stood at Rs 14 billion, while fixed assets fell 1% and stood at Rs 7 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 21 billion as against Rs 19 billion during FY21, thereby witnessing a growth of 9%.

SKIPPER Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,078	7,321	3.4
Current Liabilities	Rs m	9,029	10,838	20.0
Long-term Debt	Rs m	2,563	2,120	-17.3
Total Liabilities	Rs m	19,193	20,839	8.6
Current assets	Rs m	12,161	13,851	13.9
Fixed Assets	Rs m	7,032	6,988	-0.6
Total Assets	Rs m	19,193	20,839	8.6

SKIPPER Cash Flow Statement Analysis

• SKIPPER's cash flow from operating activities (CFO) during FY22 stood at Rs 173 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -482 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 311 million, an improvement of 138% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 2 million from the Rs 0 million net cash flows seen during FY21.

SKIPPER 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	1,804	173	-90.4%
Cash Flow from Investing Activities	Rs m	-996	-482	-
Cash Flow from Financing Activities	Rs m	-807	311	-
Net Cash Flow	Rs m	0	2	258.7%

Current Valuations for SKIPPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an improvement from the EPS of Rs 2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 55.7, stands at 20.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 10.0 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	154.0	166.3
TTM Earnings per share	Rs	2.1	2.8
Diluted earnings per share	Rs	2.1	2.8
Price to Cash Flow	x	9.4	10.0
TTM P/E ratio	x	29.5	20.0
Price / Book Value ratio	x	0.7	1.1
Market Cap	Rs m	4,764	7,693
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for SKIPPER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY22, from 1.3x 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 deteriorated and stood at 1.3x during FY22, from 1.4x 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 3.9% during FY22, from 3.0% 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 13.1% during FY22, from 10.8% 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 5.9% during FY22, from 4.9% 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	1.3	1.3
Debtors’ Days	Days	109	93
Interest coverage	x	1.4	1.3
Debt to equity ratio	x	0.4	0.3
Return on assets	%	4.9	5.9
Return on equity	%	3.0	3.9
Return on capital employed	%	10.8	13.1

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 down from Rs 89.5 to Rs 55.7, registering a loss of Rs 33.8 or around 37.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 30,053.1 (down 0.4%). Over the last one year it has moved up from 23,787.5 to 30,053.1, a gain of 6,266 points (up 26.3%).

Overall, the S&P BSE SENSEX is up 10.4% 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