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SOLAR INDUSTRIES 2021-22 Annual Report Analysis
Fri, 20 May

SOLAR INDUSTRIES 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.

SOLAR INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 56.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 42.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.6% in FY22 as against 20.5% in FY21.
  • Depreciation charges increased by 16.8% and finance costs increased by 10.7% YoY, respectively.
  • Other income grew by 51.1% YoY.
  • Net profit for the year grew by 58.1% YoY.
  • Net profit margins during the year grew from 11.5% in FY21 to 11.5% in FY22.

SOLAR INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 25,156 39,476 56.9%
Other income Rs m 214 324 51.1%
Total Revenues Rs m 25,371 39,800 56.9%
Gross profit Rs m 5,146 7,346 42.7%
Depreciation Rs m 935 1,093 16.8%
Interest Rs m 454 503 10.7%
Profit before tax Rs m 3,971 6,074 53.0%
Tax Rs m 1,090 1,520 39.4%
Profit after tax Rs m 2,881 4,555 58.1%
Gross profit margin % 20.5 18.6
Effective tax rate % 27.5 25.0
Net profit margin % 11.5 11.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

SOLAR INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 11 billion as compared to Rs 8 billion in FY21, thereby witnessing an increase of 36.4%.
  • Long-term debt stood at Rs 4 billion as compared to Rs 4 billion during FY21, a growth of 0.6%.
  • Current assets rose 36% and stood at Rs 17 billion, while fixed assets rose 13% and stood at Rs 20 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 36 billion as against Rs 30 billion during FY21, thereby witnessing a growth of 23%.

SOLAR INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 15,794 19,143 21.2
 
Current Liabilities Rs m 8,194 11,179 36.4
Long-term Debt Rs m 4,332 4,359 0.6
Total Liabilities Rs m 29,594 36,294 22.6
 
Current assets Rs m 12,257 16,639 35.8
Fixed Assets Rs m 17,338 19,656 13.4
Total Assets Rs m 29,594 36,294 22.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SOLAR INDUSTRIES Cash Flow Statement Analysis

  • SOLAR INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion, an improvement of 20.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -454 million on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -853 million from the Rs 774 million net cash flows seen during FY21.

SOLAR INDUSTRIES 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 3,567 2,978 -16.5%
Cash Flow from Investing Activities Rs m -2,507 -3,031 -
Cash Flow from Financing Activities Rs m -261 -454 -
Net Cash Flow Rs m 774 -853 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SOLAR INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 50.3, an improvement from the EPS of Rs 31.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,795.1, stands at 55.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 13.2 times, while the price to sales ratio stands at 6.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 33.1 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 278.0 436.2
TTM Earnings per share Rs 31.8 50.3
Diluted earnings per share Rs 31.8 50.3
Price to Cash Flow x 30.3 33.1
TTM P/E ratio x 40.1 55.5
Price / Book Value ratio x 6.5 9.8
Market Cap Rs m 102,706 186,925
Dividends per share (Unadj.) Rs 6.0 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SOLAR INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY22, from 1.5x 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 improved and stood at 13.1x during FY22, from 9.7x 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 23.8% during FY22, from 18.2% 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 28.0% during FY22, from 22.0% 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 13.9% during FY22, from 11.3% 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 1.5 1.5
Debtors’ Days Days 7 5
Interest coverage x 9.7 13.1
Debt to equity ratio x 0.3 0.2
Return on assets % 11.3 13.9
Return on equity % 18.2 23.8
Return on capital employed % 22.0 28.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SOLAR INDUSTRIES Share Price Performance

Over the last one year, SOLAR INDUSTRIES share price has moved up from Rs 1,255.6 to Rs 2,795.1, registering a gain of Rs 1,539.5 or around 122.6%.

Overall, the S&P BSE SENSEX is up 8.3% over the year.

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

Annual Report FAQs

What is the current share price of SOLAR INDUSTRIES?

SOLAR INDUSTRIES currently trades at Rs 8,786.1 per share. You can check out the latest share price performance of SOLAR INDUSTRIES here...

What was the revenue of SOLAR INDUSTRIES in FY22? How does it compare to earlier years?

The revenues of SOLAR INDUSTRIES stood at Rs 39,800 m in FY22, which was up 56.9% compared to Rs 25,371 m reported in FY21.

SOLAR INDUSTRIES' revenue has grown from Rs 19,036 m in FY18 to Rs 39,800 m in FY22.

Over the past 5 years, the revenue of SOLAR INDUSTRIES has grown at a CAGR of 20.2%.

What was the net profit of SOLAR INDUSTRIES in FY22? How does it compare to earlier years?

The net profit of SOLAR INDUSTRIES stood at Rs 4,555 m in FY22, which was up 58.1% compared to Rs 2,881 m reported in FY21.

This compares to a net profit of Rs 2,787 m in FY20 and a net profit of Rs 2,768 m in FY19.

Over the past 5 years, SOLAR INDUSTRIES net profit has grown at a CAGR of 18.2%.

What does the cash flow statement of SOLAR INDUSTRIES 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 SOLAR INDUSTRIES reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 2,978 m as compared to Rs 3,567 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -3,031 m as compared to Rs -2,507 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -454 m as compared to Rs -261 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations2,5413,1383,2483,5672,978
From Investments-1,743-2,023-2,122-2,507-3,031
From Financial Activity-532-517-336-261-454
Net Cashflow26685316774-853

What does the Key Ratio analysis of SOLAR INDUSTRIES 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 SOLAR INDUSTRIES reveals:

  • Operating profit margins witnessed a fall and stood at 18.6% in FY22 as against 20.5% in FY21.
  • Net profit margins grew from 11.5% in FY21 to 11.5% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.2 as compared to 0.3 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)21.320.119.420.518.6
Net Profit Margin (%)12.411.212.511.511.5
Debt to Equity Ratio (x)0.20.10.20.30.2

Read: Latest Annual Report Analysis of SOLAR INDUSTRIES

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