Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  


SOBHA 2020-21 Annual Report Analysis
Wed, 31 Mar

SOBHA 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.

SOBHA Income Statement Analysis

  • Operating income during the year fell 43.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 39.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 32.0% in FY21 as against 29.7% in FY20.
  • Depreciation charges increased by 9.8% and finance costs decreased by 11.8% YoY, respectively.
  • Other income grew by 12.3% YoY.
  • Net profit for the year declined by 77.9% YoY.
  • Net profit margins during the year declined from 7.5% in FY20 to 3.0% in FY21.

SOBHA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 37,539 21,098 -43.8%
Other income Rs m 718 806 12.3%
Total Revenues Rs m 38,257 21,904 -42.7%
Gross profit Rs m 11,152 6,751 -39.5%
Depreciation Rs m 723 794 9.8%
Interest Rs m 6,816 6,012 -11.8%
Profit before tax Rs m 4,332 752 -82.6%
Tax Rs m 1,515 129 -91.5%
Profit after tax Rs m 2,817 623 -77.9%
Gross profit margin % 29.7 32.0
Effective tax rate % 35.0 17.2
Net profit margin % 7.5 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

SOBHA Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 84 billion as compared to Rs 83 billion in FY20, thereby witnessing an increase of 1.0%.
  • Long-term debt stood at Rs 4 billion as compared to Rs 2 billion during FY20, a growth of 47.4%.
  • Current assets rose 1% and stood at Rs 95 billion, while fixed assets rose 9% and stood at Rs 17 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 112 billion as against Rs 110 billion during FY20, thereby witnessing a growth of 2%.

SOBHA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 24,312 24,277 -0.1
 
Current Liabilities Rs m 82,916 83,759 1.0
Long-term Debt Rs m 2,378 3,504 47.4
Total Liabilities Rs m 110,102 112,082 1.8
 
Current assets Rs m 94,167 94,766 0.6
Fixed Assets Rs m 15,935 17,317 8.7
Total Assets Rs m 110,102 112,082 1.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SOBHA Cash Flow Statement Analysis

  • SOBHA's cash flow from operating activities (CFO) during FY21 stood at Rs 6 billion, an improvement of 108.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -332 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -5 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 962 million from the Rs -969 million net cash flows seen during FY20.

SOBHA 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 2,944 6,128 108.2%
Cash Flow from Investing Activities Rs m -3,070 -332 -
Cash Flow from Financing Activities Rs m -844 -4,834 -
Net Cash Flow Rs m -969 962 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SOBHA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.6, an decline from the EPS of Rs 29.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 435.9, stands at 66.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.0 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 395.8 222.4
TTM Earnings per share Rs 29.7 6.6
Diluted earnings per share Rs 29.7 6.6
Price to Cash Flow x 3.6 21.0
TTM P/E ratio x 4.6 66.4
Price / Book Value ratio x 1.4 1.2
Market Cap Rs m 33,473 29,708
Dividends per share (Unadj.) Rs 7.0 3.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SOBHA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY21, from 1.1x 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 deteriorated and stood at 1.1x during FY21, from 1.6x 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 2.6% during FY21, from 11.6% 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 24.3% during FY21, from 41.8% 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 declined and down at 5.9% during FY21, from 8.7% 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 1.1 1.1
Debtors’ Days Days 35 34
Interest coverage x 1.6 1.1
Debt to equity ratio x 0.1 0.1
Return on assets % 8.7 5.9
Return on equity % 11.6 2.6
Return on capital employed % 41.8 24.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SOBHA Share Price Performance

Over the last one year, SOBHA share price has moved up from Rs 135.4 to Rs 435.9, registering a gain of Rs 300.5 or around 221.9%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

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

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

Annual Report FAQs

What is the current share price of SOBHA?

SOBHA currently trades at Rs 1,444.3 per share. You can check out the latest share price performance of SOBHA here...

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

The revenues of SOBHA stood at Rs 21,904 m in FY21, which was down -42.7% compared to Rs 38,257 m reported in FY20.

SOBHA's revenue has fallen from Rs 22,506 m in FY17 to Rs 21,904 m in FY21.

Over the past 5 years, the revenue of SOBHA has grown at a CAGR of -0.7%.

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

The net profit of SOBHA stood at Rs 623 m in FY21, which was down -77.9% compared to Rs 2,817 m reported in FY20.

This compares to a net profit of Rs 2,970 m in FY19 and a net profit of Rs 2,169 m in FY18.

Over the past 5 years, SOBHA net profit has grown at a CAGR of -19.4%.

What does the cash flow statement of SOBHA 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 SOBHA reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 6,128 m as compared to Rs 2,944 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -332 m as compared to Rs -3,070 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -4,834 m as compared to Rs -844 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations3,5383,5352,0612,9446,128
From Investments20-1,287-614-3,070-332
From Financial Activity-3,454-2,428-862-844-4,834
Net Cashflow105-180585-969962

What does the Key Ratio analysis of SOBHA 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 SOBHA reveals:

  • Operating profit margins witnessed a fall and down at 32.0% in FY21 as against 29.7% in FY20.
  • Net profit margins declined from 7.5% in FY20 to 3.0% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.1 as compared to 0.1 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)19.018.719.629.732.0
Net Profit Margin (%)6.77.88.67.53.0
Debt to Equity Ratio (x)0.20.10.00.10.1

Read: Latest Annual Report Analysis of SOBHA

Equitymaster requests your view! Post a comment on "SOBHA 2020-21 Annual Report Analysis". Click here!