S.P. APPARELS 2020-21 Annual Report Analysis

Wed, 31 Mar

S.P. APPARELS 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.

S.P. APPARELS Income Statement Analysis

• Operating income during the year fell 19.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 39.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.7% in FY21 as against 9.1% in FY20.
• Depreciation charges increased by 7.9% and finance costs decreased by 37.1% YoY, respectively.
• Other income declined by 85.6% YoY.
• Net profit for the year declined by 8.0% YoY.
• Net profit margins during the year grew from 5.8% in FY20 to 6.6% in FY21.

S.P. APPARELS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	8,090	6,523	-19.4%
Other income	Rs m	237	34	-85.6%
Total Revenues	Rs m	8,327	6,557	-21.3%
Gross profit	Rs m	734	1,024	39.4%
Depreciation	Rs m	299	323	7.9%
Interest	Rs m	228	143	-37.1%
Profit before tax	Rs m	444	591	33.2%
Tax	Rs m	-25	160	-736.3%
Profit after tax	Rs m	469	432	-8.0%
Gross profit margin	%	9.1	15.7
Effective tax rate	%	-5.7	27.0
Net profit margin	%	5.8	6.6

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S.P. APPARELS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -7.4%.
• Long-term debt down at Rs 547 million as compared to Rs 616 million during FY20, a fall of 11.2%.
• Current assets rose 1% and stood at Rs 4 billion, while fixed assets rose 3% and stood at Rs 5 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 9 billion during FY20, thereby witnessing a growth of 2%.

S.P. APPARELS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,232	5,584	6.7
Current Liabilities	Rs m	2,807	2,598	-7.4
Long-term Debt	Rs m	616	547	-11.2
Total Liabilities	Rs m	8,925	9,102	2.0
Current assets	Rs m	4,285	4,338	1.2
Fixed Assets	Rs m	4,639	4,764	2.7
Total Assets	Rs m	8,925	9,102	2.0

S.P. APPARELS Cash Flow Statement Analysis

• S.P. APPARELS's cash flow from operating activities (CFO) during FY21 stood at Rs 805 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -208 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -424 million, an improvement of 6% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 173 million from the Rs -11 million net cash flows seen during FY20.

S.P. APPARELS 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	827	805	-2.7%
Cash Flow from Investing Activities	Rs m	-389	-208	-
Cash Flow from Financing Activities	Rs m	-450	-424	-
Net Cash Flow	Rs m	-11	173	-

Current Valuations for S.P. APPARELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.8, an decline from the EPS of Rs 18.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 153.3, stands at 9.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 4.6 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	314.9	253.9
TTM Earnings per share	Rs	18.3	16.8
Diluted earnings per share	Rs	18.3	16.8
Price to Cash Flow	x	2.1	4.6
TTM P/E ratio	x	3.4	9.1
Price / Book Value ratio	x	1.0	0.6
Market Cap	Rs m	4,973	3,455
Dividends per share (Unadj.)	Rs	0.0	2.3

Ratio Analysis for S.P. APPARELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.5x 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 5.1x during FY21, from 2.9x 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 7.7% during FY21, from 9.0% 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 12.0% during FY21, from 11.5% 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 6.3% during FY21, from 7.8% 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	1.5	1.7
Debtors’ Days	Days	42	65
Interest coverage	x	2.9	5.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.8	6.3
Return on equity	%	9.0	7.7
Return on capital employed	%	11.5	12.0

To see how S.P. APPARELS has performed over the last 5 years, please visit here.

S.P. APPARELS Share Price Performance

Over the last one year, S.P. APPARELS share price has moved up from Rs 62.0 to Rs 153.3, registering a gain of Rs 91.3 or around 147.3%.

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

(To know more, check out historical annual results for S.P. APPARELS and quarterly results for S.P. APPARELS)

Read: Latest Annual Report Analysis of S.P. APPARELS