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SKF INDIA 2020-21 Annual Report Analysis
Wed, 31 Mar

SKF INDIA 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.

SKF INDIA Income Statement Analysis

  • Operating income during the year fell 6.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 20.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.7% in FY21 as against 12.3% in FY20.
  • Depreciation charges increased by 1.5% and finance costs decreased by 77.5% YoY, respectively.
  • Other income declined by 65.2% YoY.
  • Net profit for the year grew by 3.0% YoY.
  • Net profit margins during the year grew from 10.2% in FY20 to 11.1% in FY21.

SKF INDIA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 28,416 26,707 -6.0%
Other income Rs m 1,042 362 -65.2%
Total Revenues Rs m 29,458 27,070 -8.1%
Gross profit Rs m 3,492 4,201 20.3%
Depreciation Rs m 571 580 1.5%
Interest Rs m 95 21 -77.5%
Profit before tax Rs m 3,868 3,963 2.5%
Tax Rs m 978 986 0.8%
Profit after tax Rs m 2,890 2,977 3.0%
Gross profit margin % 12.3 15.7
Effective tax rate % 25.3 24.9
Net profit margin % 10.2 11.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SKF INDIA Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 7 billion as compared to Rs 5 billion in FY20, thereby witnessing an increase of 34.2%.
  • Current assets fell 11% and stood at Rs 16 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 23 billion as against Rs 25 billion during FY20, thereby witnessing a fall of 7%.

SKF INDIA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 19,053 15,638 -17.9
 
Current Liabilities Rs m 5,165 6,931 34.2
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 24,525 22,827 -6.9
 
Current assets Rs m 18,401 16,315 -11.3
Fixed Assets Rs m 6,123 6,512 6.4
Total Assets Rs m 24,525 22,827 -6.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SKF INDIA Cash Flow Statement Analysis

  • SKF INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 7 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -7 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 3 billion from the Rs -21 million net cash flows seen during FY20.

SKF INDIA 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 3,298 3,240 -1.8%
Cash Flow from Investing Activities Rs m -1,540 6,536 -
Cash Flow from Financing Activities Rs m -1,779 -6,518 -
Net Cash Flow Rs m -21 3,258 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SKF INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 60.3, an improvement from the EPS of Rs 58.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,250.1, stands at 47.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while the price to sales ratio stands at 4.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 26.7 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 575.2 540.6
TTM Earnings per share Rs 58.5 60.3
Diluted earnings per share Rs 58.5 60.2
Price to Cash Flow x 20.7 26.7
TTM P/E ratio x 24.8 47.8
Price / Book Value ratio x 4.6 6.1
Market Cap Rs m 87,697 95,099
Dividends per share (Unadj.) Rs 130.0 14.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SKF INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY21, from 3.6x 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 187.1x during FY21, from 41.8x 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 improved and stood at 19.0% during FY21, from 15.2% 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 improved and stood at 25.5% during FY21, from 20.8% 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 improved and stood at 13.1% during FY21, from 12.2% 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 3.6 2.4
Debtors’ Days Days 56 80
Interest coverage x 41.8 187.1
Debt to equity ratio x 0.0 0.0
Return on assets % 12.2 13.1
Return on equity % 15.2 19.0
Return on capital employed % 20.8 25.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SKF INDIA Share Price Performance

Over the last one year, SKF INDIA share price has moved up from Rs 1,448.1 to Rs 2,250.1, registering a gain of Rs 802.1 or around 55.4%.

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

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

Annual Report FAQs

What is the current share price of SKF INDIA?

SKF INDIA currently trades at Rs 4,162.7 per share. You can check out the latest share price performance of SKF INDIA here...

What was the revenue of SKF INDIA in FY21? How does it compare to earlier years?

The revenues of SKF INDIA stood at Rs 27,070 m in FY21, which was down -8.1% compared to Rs 29,458 m reported in FY20.

SKF INDIA's revenue has grown from Rs 25,146 m in FY17 to Rs 27,070 m in FY21.

Over the past 5 years, the revenue of SKF INDIA has grown at a CAGR of 1.9%.

What was the net profit of SKF INDIA in FY21? How does it compare to earlier years?

The net profit of SKF INDIA stood at Rs 2,977 m in FY21, which was up 3.0% compared to Rs 2,890 m reported in FY20.

This compares to a net profit of Rs 3,358 m in FY19 and a net profit of Rs 2,959 m in FY18.

Over the past 5 years, SKF INDIA net profit has grown at a CAGR of 5.1%.

What does the cash flow statement of SKF INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of SKF INDIA reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 3,240 m as compared to Rs 3,298 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 6,536 m as compared to Rs -1,540 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -6,518 m as compared to Rs -1,779 m in FY20.

Here's the cash flow statement of SKF INDIA for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations1,1503,6721,8103,2983,240
From Investments1,471-2,6493,064-1,5406,536
From Financial Activity-1,262-2,253-4,765-1,779-6,518
Net Cashflow1,359-1,230109-213,258

What does the Key Ratio analysis of SKF INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of SKF INDIA reveals:

  • Operating profit margins witnessed a fall and down at 15.7% in FY21 as against 12.3% in FY20.
  • Net profit margins grew from 10.2% in FY20 to 11.1% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of SKF INDIA for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)13.816.116.012.315.7
Net Profit Margin (%)10.011.011.110.211.1
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of SKF INDIA

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