SUPREME INDUSTRIES 2021-22 Annual Report Analysis

Wed, 8 Jun

SUPREME 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.

SUPREME INDUSTRIES Income Statement Analysis

• Operating income during the year rose 22.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.0% in FY22 as against 20.2% in FY21.
• Depreciation charges increased by 7.9% and finance costs decreased by 76.6% YoY, respectively.
• Other income grew by 18.1% YoY.
• Net profit for the year declined by 8.2% YoY.
• Net profit margins during the year declined from 13.1% in FY21 to 9.8% in FY22.

SUPREME INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	63,552	77,728	22.3%
Other income	Rs m	169	200	18.1%
Total Revenues	Rs m	63,721	77,928	22.3%
Gross profit	Rs m	12,842	12,421	-3.3%
Depreciation	Rs m	2,128	2,295	7.9%
Interest	Rs m	221	52	-76.6%
Profit before tax	Rs m	10,662	10,274	-3.6%
Tax	Rs m	2,341	2,633	12.5%
Profit after tax	Rs m	8,322	7,641	-8.2%
Gross profit margin	%	20.2	16.0
Effective tax rate	%	22.0	25.6
Net profit margin	%	13.1	9.8

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SUPREME INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 13 billion as compared to Rs 13 billion in FY21, thereby witnessing an increase of 0.7%.
• Current assets rose 16% and stood at Rs 27 billion, while fixed assets rose 14% and stood at Rs 25 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 53 billion as against Rs 46 billion during FY21, thereby witnessing a growth of 15%.

SUPREME INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	31,692	38,444	21.3
Current Liabilities	Rs m	12,567	12,652	0.7
Long-term Debt	Rs m	6	0	-100.0
Total Liabilities	Rs m	45,709	52,607	15.1
Current assets	Rs m	23,546	27,401	16.4
Fixed Assets	Rs m	22,163	25,206	13.7
Total Assets	Rs m	45,709	52,607	15.1

SUPREME INDUSTRIES Cash Flow Statement Analysis

• SUPREME INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion, an improvement of 101.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -3 billion, an improvement of 39% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -2 billion from the Rs 5 billion net cash flows seen during FY21.

SUPREME 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	12,464	4,704	-62.3%
Cash Flow from Investing Activities	Rs m	-2,006	-4,035	-
Cash Flow from Financing Activities	Rs m	-5,055	-3,103	-
Net Cash Flow	Rs m	5,416	-2,425	-

Current Valuations for SUPREME INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 60.1, an decline from the EPS of Rs 65.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,888.7, stands at 31.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 29.1 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	500.3	611.9
TTM Earnings per share	Rs	65.5	60.1
Diluted earnings per share	Rs	65.5	60.1
Price to Cash Flow	x	24.8	29.1
TTM P/E ratio	x	31.1	31.4
Price / Book Value ratio	x	5.9	7.5
Market Cap	Rs m	185,567	288,656
Dividends per share (Unadj.)	Rs	22.0	24.0

Ratio Analysis for SUPREME INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY22, from 1.9x 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 200.5x during FY22, from 49.4x 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 declined and down at 19.9% during FY22, from 26.3% 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 declined and down at 26.9% during FY22, from 34.3% 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 declined and down at 14.6% during FY22, from 18.7% 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	1.9	2.2
Debtors’ Days	Days	2	2
Interest coverage	x	49.4	200.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.7	14.6
Return on equity	%	26.3	19.9
Return on capital employed	%	34.3	26.9

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

SUPREME INDUSTRIES Share Price Performance

Over the last one year, SUPREME INDUSTRIES share price has moved down from Rs 2,264.9 to Rs 1,888.7, registering a loss of Rs 376.3 or around 16.6%.

Overall, the S&P BSE SENSEX is up 5.5% over the year.

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

Read: Latest Annual Report Analysis of SUPREME INDUSTRIES