SHAKTI PUMPS 2020-21 Annual Report Analysis

Wed, 31 Mar

SHAKTI PUMPS 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.

SHAKTI PUMPS Income Statement Analysis

• Operating income during the year rose 142.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1059.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.3% in FY21 as against 3.2% in FY20.
• Depreciation charges increased by 6.8% and finance costs decreased by 22.0% YoY, respectively.
• Other income declined by 7.8% YoY.
• Net profit for the year declined by 637.0% YoY.
• Net profit margins during the year grew from 3.7% in FY20 to 8.1% in FY21.

SHAKTI PUMPS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,828	9,297	142.8%
Other income	Rs m	41	38	-7.8%
Total Revenues	Rs m	3,869	9,334	141.3%
Gross profit	Rs m	123	1,421	1,059.6%
Depreciation	Rs m	172	184	6.8%
Interest	Rs m	208	162	-22.0%
Profit before tax	Rs m	-217	1,112	-613.8%
Tax	Rs m	-76	357	-570.8%
Profit after tax	Rs m	-141	756	-637.0%
Gross profit margin	%	3.2	15.3
Effective tax rate	%	35.0	32.1
Net profit margin	%	-3.7	8.1

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SHAKTI PUMPS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 20.6%.
• Long-term debt down at Rs 199 million as compared to Rs 261 million during FY20, a fall of 23.7%.
• Current assets rose 35% and stood at Rs 5 billion, while fixed assets fell 1% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 5 billion during FY20, thereby witnessing a growth of 24%.

SHAKTI PUMPS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,652	3,406	28.5
Current Liabilities	Rs m	2,425	2,923	20.6
Long-term Debt	Rs m	261	199	-23.7
Total Liabilities	Rs m	5,406	6,705	24.0
Current assets	Rs m	3,698	5,009	35.5
Fixed Assets	Rs m	1,709	1,695	-0.8
Total Assets	Rs m	5,406	6,705	24.0

SHAKTI PUMPS Cash Flow Statement Analysis

• SHAKTI PUMPS's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 139.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 2 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 150 million from the Rs 13 million net cash flows seen during FY20.

SHAKTI PUMPS 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	503	1,206	139.7%
Cash Flow from Investing Activities	Rs m	-350	2	-
Cash Flow from Financing Activities	Rs m	-140	-1,058	-
Net Cash Flow	Rs m	13	150	1,061.4%

Current Valuations for SHAKTI PUMPS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.1, an improvement from the EPS of Rs -7.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 515.8, stands at 12.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 6.9 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	208.3	505.8
TTM Earnings per share	Rs	-7.7	41.1
Diluted earnings per share	Rs	-7.7	41.1
Price to Cash Flow	x	69.6	6.9
TTM P/E ratio	x	-15.4	12.5
Price / Book Value ratio	x	2.0	1.9
Market Cap	Rs m	5,349	6,450
Dividends per share (Unadj.)	Rs	0.0	8.0

Ratio Analysis for SHAKTI PUMPS

• 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 7.9x during FY21, from 0.0x 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 improved and stood at 22.2% during FY21, from -5.3% 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 35.4% during FY21, from -0.3% 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 improved and stood at 13.7% during FY21, from 1.2% 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	1,194	1,039
Interest coverage	x	0.0	7.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	1.2	13.7
Return on equity	%	-5.3	22.2
Return on capital employed	%	-0.3	35.4

To see how SHAKTI PUMPS has performed over the last 5 years, please visit here.

SHAKTI PUMPS Share Price Performance

Over the last one year, SHAKTI PUMPS share price has moved up from Rs 118.1 to Rs 515.8, registering a gain of Rs 397.7 or around 336.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

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

(To know more, check out historical annual results for SHAKTI PUMPS and quarterly results for SHAKTI PUMPS)

Read: Latest Annual Report Analysis of SHAKTI PUMPS