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SOMANY CERAMICS 2021-22 Annual Report Analysis
Thu, 8 Sep

SOMANY CERAMICS 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.

SOMANY CERAMICS Income Statement Analysis

  • Operating income during the year rose 26.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 20.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.8% in FY22 as against 10.4% in FY21.
  • Depreciation charges increased by 3.8% and finance costs decreased by 26.2% YoY, respectively.
  • Other income grew by 1.4% YoY.
  • Net profit for the year grew by 54.2% YoY.
  • Net profit margins during the year grew from 3.7% in FY21 to 4.5% in FY22.

SOMANY CERAMICS Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 16,506 20,945 26.9%
Other income Rs m 135 137 1.4%
Total Revenues Rs m 16,641 21,081 26.7%
Gross profit Rs m 1,710 2,063 20.6%
Depreciation Rs m 616 640 3.8%
Interest Rs m 401 296 -26.2%
Profit before tax Rs m 827 1,264 52.7%
Tax Rs m 221 329 48.8%
Profit after tax Rs m 606 934 54.2%
Gross profit margin % 10.4 9.8
Effective tax rate % 26.8 26.1
Net profit margin % 3.7 4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SOMANY CERAMICS Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 9 billion as compared to Rs 7 billion in FY21, thereby witnessing an increase of 21.6%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY21, a growth of 15.3%.
  • Current assets rose 6% and stood at Rs 10 billion, while fixed assets rose 27% and stood at Rs 10 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 20 billion as against Rs 17 billion during FY21, thereby witnessing a growth of 16%.

SOMANY CERAMICS Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 6,407 7,263 13.4
 
Current Liabilities Rs m 7,040 8,559 21.6
Long-term Debt Rs m 1,514 1,746 15.3
Total Liabilities Rs m 17,028 19,686 15.6
 
Current assets Rs m 9,144 9,664 5.7
Fixed Assets Rs m 7,884 10,022 27.1
Total Assets Rs m 17,028 19,686 15.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SOMANY CERAMICS Cash Flow Statement Analysis

  • SOMANY CERAMICS 's cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion, an improvement of 184.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 499 million, an improvement of 136% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -488 million from the Rs 1 billion net cash flows seen during FY21.

SOMANY CERAMICS 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 3,563 1,566 -56.1%
Cash Flow from Investing Activities Rs m -896 -2,553 -
Cash Flow from Financing Activities Rs m -1,392 499 -
Net Cash Flow Rs m 1,276 -488 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SOMANY CERAMICS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.0, an improvement from the EPS of Rs 14.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 614.0, stands at 23.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.3 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 388.6 493.2
TTM Earnings per share Rs 14.3 22.0
Diluted earnings per share Rs 14.3 22.0
Price to Cash Flow x 14.8 18.3
TTM P/E ratio x 29.7 23.8
Price / Book Value ratio x 1.8 4.0
Market Cap Rs m 11,608 28,828
Dividends per share (Unadj.) Rs 2.4 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SOMANY CERAMICS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY22, from 1.3x 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 5.3x during FY22, from 3.1x 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 12.9% during FY22, from 9.5% 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 17.3% during FY22, from 15.5% 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 6.3% during FY22, from 5.9% 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 1.3 1.1
Debtors’ Days Days 489 413
Interest coverage x 3.1 5.3
Debt to equity ratio x 0.2 0.2
Return on assets % 5.9 6.3
Return on equity % 9.5 12.9
Return on capital employed % 15.5 17.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SOMANY CERAMICS Share Price Performance

Over the last one year, SOMANY CERAMICS share price has moved down from Rs 695.0 to Rs 614.0, registering a loss of Rs 81.1 or around 11.7%.

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

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

Annual Report FAQs

What is the current share price of SOMANY CERAMICS ?

SOMANY CERAMICS currently trades at Rs 599.3 per share. You can check out the latest share price performance of SOMANY CERAMICS here...

What was the revenue of SOMANY CERAMICS in FY22? How does it compare to earlier years?

The revenues of SOMANY CERAMICS stood at Rs 21,081 m in FY22, which was up 26.7% compared to Rs 16,641 m reported in FY21.

SOMANY CERAMICS 's revenue has grown from Rs 16,963 m in FY18 to Rs 21,081 m in FY22.

Over the past 5 years, the revenue of SOMANY CERAMICS has grown at a CAGR of 5.6%.

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

The net profit of SOMANY CERAMICS stood at Rs 934 m in FY22, which was up 54.2% compared to Rs 606 m reported in FY21.

This compares to a net profit of Rs 195 m in FY20 and a net profit of Rs 533 m in FY19.

Over the past 5 years, SOMANY CERAMICS net profit has grown at a CAGR of 4.2%.

What does the cash flow statement of SOMANY CERAMICS 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 SOMANY CERAMICS reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 1,566 m as compared to Rs 3,563 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -2,553 m as compared to Rs -896 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 499 m as compared to Rs -1,392 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations1,1098591,5273,5631,566
From Investments-1,104-889-148-896-2,553
From Financial Activity-96269-1,525-1,392499
Net Cashflow-91239-1461,276-488

What does the Key Ratio analysis of SOMANY CERAMICS 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 SOMANY CERAMICS reveals:

  • Operating profit margins witnessed a fall and stood at 9.8% in FY22 as against 10.4% in FY21.
  • Net profit margins grew from 3.7% in FY21 to 4.5% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.2 as compared to 0.2 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)10.88.86.510.49.8
Net Profit Margin (%)4.73.11.23.74.5
Debt to Equity Ratio (x)0.30.40.30.20.2

Read: Latest Annual Report Analysis of SOMANY CERAMICS

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