SJVN 2020-21 Annual Report Analysis

Wed, 31 Mar

SJVN 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.

SJVN Income Statement Analysis

• Operating income during the year fell 8.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 26.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 62.4% in FY21 as against 77.7% in FY20.
• Depreciation charges increased by 2.4% and finance costs decreased by 71.6% YoY, respectively.
• Other income grew by 88.9% YoY.
• Net profit for the year grew by 5.2% YoY.
• Net profit margins during the year grew from 57.8% in FY20 to 66.1% in FY21.

SJVN Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	27,028	24,854	-8.0%
Other income	Rs m	5,937	11,217	88.9%
Total Revenues	Rs m	32,965	36,071	9.4%
Gross profit	Rs m	21,006	15,506	-26.2%
Depreciation	Rs m	3,841	3,933	2.4%
Interest	Rs m	3,442	977	-71.6%
Profit before tax	Rs m	19,659	21,813	11.0%
Tax	Rs m	4,047	5,395	33.3%
Profit after tax	Rs m	15,612	16,418	5.2%
Gross profit margin	%	77.7	62.4
Effective tax rate	%	20.6	24.7
Net profit margin	%	57.8	66.1

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SJVN Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 18 billion as compared to Rs 10 billion in FY20, thereby witnessing an increase of 82.7%.
• Long-term debt down at Rs 19 billion as compared to Rs 20 billion during FY20, a fall of 5.9%.
• Current assets fell 12% and stood at Rs 37 billion, while fixed assets rose 21% and stood at Rs 146 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 183 billion as against Rs 162 billion during FY20, thereby witnessing a growth of 13%.

SJVN Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	120,511	127,912	6.1
Current Liabilities	Rs m	9,873	18,041	82.7
Long-term Debt	Rs m	19,722	18,557	-5.9
Total Liabilities	Rs m	162,237	182,803	12.7
Current assets	Rs m	41,362	36,603	-11.5
Fixed Assets	Rs m	120,875	146,200	21.0
Total Assets	Rs m	162,237	182,803	12.7

SJVN Cash Flow Statement Analysis

• SJVN's cash flow from operating activities (CFO) during FY21 stood at Rs 20 billion, an improvement of 15.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -11 billion, an improvement of 1,108.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -11 billion, an improvement of 18% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -3 billion from the Rs 3 billion net cash flows seen during FY20.

SJVN 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	17,135	19,827	15.7%
Cash Flow from Investing Activities	Rs m	-947	-11,446	-
Cash Flow from Financing Activities	Rs m	-13,454	-11,050	-
Net Cash Flow	Rs m	2,734	-2,669	-

Current Valuations for SJVN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.2, an improvement from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 26.1, stands at 7.0 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 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 4.6 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	6.9	6.3
TTM Earnings per share	Rs	4.0	4.2
Diluted earnings per share	Rs	4.0	4.2
Price to Cash Flow	x	4.2	4.6
TTM P/E ratio	x	4.9	7.0
Price / Book Value ratio	x	0.7	0.7
Market Cap	Rs m	88,224	93,824
Dividends per share (Unadj.)	Rs	2.2	2.2

Ratio Analysis for SJVN

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY21, from 4.2x 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 23.3x during FY21, from 6.7x 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 12.8% during FY21, from 13.0% 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 15.6% during FY21, from 16.5% 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 9.5% during FY21, from 11.7% 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	4.2	2.0
Debtors’ Days	Days	1,005	766
Interest coverage	x	6.7	23.3
Debt to equity ratio	x	0.2	0.1
Return on assets	%	11.7	9.5
Return on equity	%	13.0	12.8
Return on capital employed	%	16.5	15.6

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

SJVN Share Price Performance

Over the last one year, SJVN share price has moved up from Rs 20.7 to Rs 26.1, registering a gain of Rs 5.4 or around 25.8%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,475.1 (down 1.4%). Over the last one year it has moved up from 1,378.0 to 2,475.1, a gain of 1,097 points (up 79.6%).

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

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

Read: Latest Annual Report Analysis of SJVN