SUNDRAM FASTENERS 2020-21 Annual Report Analysis

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SUNDRAM FASTENERS 2020-21 Annual Report Analysis
Fri, 22 Oct

SUNDRAM FASTENERS 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.

SUNDRAM FASTENERS Income Statement Analysis

  • Operating income during the year fell 2.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.2% in FY21 as against 15.9% in FY20.
  • Depreciation charges increased by 5.7% and finance costs decreased by 54.9% YoY, respectively.
  • Other income declined by 2.5% YoY.
  • Net profit for the year grew by 11.1% YoY.
  • Net profit margins during the year grew from 8.7% in FY20 to 9.9% in FY21.

SUNDRAM FASTENERS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 37,232 36,443 -2.1%
Other income Rs m 281 274 -2.5%
Total Revenues Rs m 37,513 36,717 -2.1%
Gross profit Rs m 5,929 6,641 12.0%
Depreciation Rs m 1,699 1,797 5.7%
Interest Rs m 579 261 -54.9%
Profit before tax Rs m 3,932 4,857 23.5%
Tax Rs m 666 1,230 84.6%
Profit after tax Rs m 3,265 3,627 11.1%
Gross profit margin % 15.9 18.2
Effective tax rate % 16.9 25.3
Net profit margin % 8.7 9.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SUNDRAM FASTENERS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 11 billion as compared to Rs 11 billion in FY20, thereby witnessing an increase of 7.8%.
  • Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY20, a fall of 18.4%.
  • Current assets rose 23% and stood at Rs 17 billion, while fixed assets rose 3% and stood at Rs 23 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 39 billion as against Rs 35 billion during FY20, thereby witnessing a growth of 11%.

SUNDRAM FASTENERS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 19,959 23,471 17.6
 
Current Liabilities Rs m 10,621 11,450 7.8
Long-term Debt Rs m 3,250 2,652 -18.4
Total Liabilities Rs m 35,486 39,292 10.7
 
Current assets Rs m 13,552 16,662 23.0
Fixed Assets Rs m 21,934 22,630 3.2
Total Assets Rs m 35,486 39,292 10.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SUNDRAM FASTENERS Cash Flow Statement Analysis

  • SUNDRAM FASTENERS's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion, an improvement of 28% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -159 million from the Rs 208 million net cash flows seen during FY20.

SUNDRAM FASTENERS 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 7,177 4,540 -36.7%
Cash Flow from Investing Activities Rs m -3,212 -1,979 -
Cash Flow from Financing Activities Rs m -3,768 -2,702 -
Net Cash Flow Rs m 208 -159 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SUNDRAM FASTENERS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.3, an improvement from the EPS of Rs 15.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 833.9, stands at 34.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 3.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 32.3 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 177.2 173.4
TTM Earnings per share Rs 15.5 17.3
Diluted earnings per share Rs 15.5 17.3
Price to Cash Flow x 35.3 32.3
TTM P/E ratio x 34.4 34.4
Price / Book Value ratio x 4.4 4.8
Market Cap Rs m 175,216 175,216
Dividends per share (Unadj.) Rs 4.2 4.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SUNDRAM FASTENERS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x 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 19.6x during FY21, from 7.8x 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 declined and down at 15.5% during FY21, from 16.4% 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 19.6% during FY21, from 19.4% 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 9.9% during FY21, from 10.8% 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 1.5
Debtors’ Days Days 6 9
Interest coverage x 7.8 19.6
Debt to equity ratio x 0.2 0.1
Return on assets % 10.8 9.9
Return on equity % 16.4 15.5
Return on capital employed % 19.4 19.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SUNDRAM FASTENERS Share Price Performance

Over the last one year, SUNDRAM FASTENERS share price has moved up from Rs 421.4 to Rs 833.9, registering a gain of Rs 412.5 or around 97.9%.

Overall, the S&P BSE SENSEX is up 50.0% over the year.

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

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Related Views on News

SUNDRAM FASTENERS Announces Quarterly Results (4QFY20); Net Profit Down 57.3% (Quarterly Result Update)

Jun 12, 2020 | Updated on Jun 12, 2020

For the quarter ended March 2020, SUNDRAM FASTENERS has posted a net profit of Rs 468 m (down 57.3% YoY). Sales on the other hand came in at Rs 7 bn (down 30.4% YoY). Read on for a complete analysis of SUNDRAM FASTENERS's quarterly results.

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