SONA BLW PRECISION FORGINGS 2021-22 Annual Report Analysis

Thu, 8 Sep

SONA BLW PRECISION FORGINGS 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.

SONA BLW PRECISION FORGINGS Income Statement Analysis

• Operating income during the year rose 36.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.9% in FY22 as against 27.3% in FY21.
• Depreciation charges increased by 46.4% and finance costs decreased by 43.9% YoY, respectively.
• Other income grew by 755.4% YoY.
• Net profit for the year grew by 68.0% YoY.
• Net profit margins during the year grew from 13.7% in FY21 to 17.0% in FY22.

SONA BLW PRECISION FORGINGS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	15,663	21,306	36.0%
Other income	Rs m	23	200	755.4%
Total Revenues	Rs m	15,686	21,507	37.1%
Gross profit	Rs m	4,271	5,724	34.0%
Depreciation	Rs m	969	1,420	46.4%
Interest	Rs m	325	183	-43.9%
Profit before tax	Rs m	3,000	4,322	44.1%
Tax	Rs m	848	706	-16.7%
Profit after tax	Rs m	2,152	3,615	68.0%
Gross profit margin	%	27.3	26.9
Effective tax rate	%	28.3	16.3
Net profit margin	%	13.7	17.0

SONA BLW PRECISION FORGINGS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 5 billion as compared to Rs 5 billion in FY21, thereby witnessing an increase of 0.2%.
• Long-term debt down at Rs 438 million as compared to Rs 2 billion during FY21, a fall of 77.1%.
• Current assets rose 28% and stood at Rs 10 billion, while fixed assets rose 18% and stood at Rs 16 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 27 billion as against Rs 22 billion during FY21, thereby witnessing a growth of 21%.

SONA BLW PRECISION FORGINGS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	13,714	19,938	45.4
Current Liabilities	Rs m	4,564	4,571	0.2
Long-term Debt	Rs m	1,907	438	-77.1
Total Liabilities	Rs m	21,979	26,694	21.5
Current assets	Rs m	8,209	10,488	27.8
Fixed Assets	Rs m	13,769	16,205	17.7
Total Assets	Rs m	21,979	26,694	21.5

SONA BLW PRECISION FORGINGS Cash Flow Statement Analysis

• SONA BLW PRECISION FORGINGS's cash flow from operating activities (CFO) during FY22 stood at Rs 4 billion, an improvement of 211.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion, an improvement of 126.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -637 million, an improvement of 5% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 287 million from the Rs -800 million net cash flows seen during FY21.

SONA BLW PRECISION FORGINGS 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	1,427	4,446	211.5%
Cash Flow from Investing Activities	Rs m	-1,561	-3,534	-
Cash Flow from Financing Activities	Rs m	-667	-637	-
Net Cash Flow	Rs m	-800	287	-

Current Valuations for SONA BLW PRECISION FORGINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.2, an improvement from the EPS of Rs 3.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 525.0, stands at 86.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.4 times, while the price to sales ratio stands at 14.4 times.
• The company's price to cash flow (P/CF) ratio stood at 65.8 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	27.3	36.5
TTM Earnings per share	Rs	3.8	6.2
Diluted earnings per share	Rs	3.7	6.2
Price to Cash Flow	x	0.0	65.8
TTM P/E ratio	x	0.0	86.4
Price / Book Value ratio	x	0.0	16.6
Market Cap	Rs m	0	331,416
Dividends per share (Unadj.)	Rs	18.9	1.5

Ratio Analysis for SONA BLW PRECISION FORGINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY22, from 1.8x 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 24.7x during FY22, from 10.2x 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 18.1% during FY22, from 15.7% 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 22.1% during FY22, from 21.3% 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 14.2% 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	1.8	2.3
Debtors’ Days	Days	97	76
Interest coverage	x	10.2	24.7
Debt to equity ratio	x	0.1	0.0
Return on assets	%	11.3	14.2
Return on equity	%	15.7	18.1
Return on capital employed	%	21.3	22.1

To see how SONA BLW PRECISION FORGINGS has performed over the last 5 years, please visit here.

SONA BLW PRECISION FORGINGS Share Price Performance

Over the last one year, SONA BLW PRECISION FORGINGS share price has moved down from Rs 544.9 to Rs 525.0, registering a loss of Rs 19.9 or around 3.7%.

Overall, the S&P BSE SENSEX is up 2.4% over the year.

(To know more, check out historical annual results for SONA BLW PRECISION FORGINGS and quarterly results for SONA BLW PRECISION FORGINGS)

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