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SREELEATHERS 2020-21 Annual Report Analysis
Wed, 31 Mar

SREELEATHERS 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.

SREELEATHERS Income Statement Analysis

  • Operating income during the year fell 51.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 59.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.5% in FY21 as against 23.1% in FY20.
  • Depreciation charges increased by 23.0% and finance costs increased by 122.4% YoY, respectively.
  • Other income grew by 38.1% YoY.
  • Net profit for the year declined by 61.2% YoY.
  • Net profit margins during the year declined from 16.6% in FY20 to 13.4% in FY21.

SREELEATHERS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 1,730 834 -51.8%
Other income Rs m 3 4 38.1%
Total Revenues Rs m 1,734 838 -51.7%
Gross profit Rs m 399 163 -59.2%
Depreciation Rs m 10 12 23.0%
Interest Rs m 2 3 122.4%
Profit before tax Rs m 391 151 -61.3%
Tax Rs m 103 40 -61.4%
Profit after tax Rs m 288 112 -61.2%
Gross profit margin % 23.1 19.5
Effective tax rate % 26.4 26.4
Net profit margin % 16.6 13.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

SREELEATHERS Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 90 million as compared to Rs 107 million in FY20, thereby witnessing an decrease of -15.7%.
  • Current assets fell 13% and stood at Rs 184 million, while fixed assets fell 2% and stood at Rs 3 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 3 billion as against Rs 3 billion during FY20, thereby witnessing a fall of 2%.

SREELEATHERS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 3,238 3,139 -3.0
 
Current Liabilities Rs m 107 90 -15.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 3,385 3,302 -2.5
 
Current assets Rs m 210 184 -12.5
Fixed Assets Rs m 3,175 3,117 -1.8
Total Assets Rs m 3,385 3,302 -2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SREELEATHERS Cash Flow Statement Analysis

  • SREELEATHERS's cash flow from operating activities (CFO) during FY21 stood at Rs 109 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 246 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -332 million on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 22 million from the Rs -54 million net cash flows seen during FY20.

SREELEATHERS 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 289 109 -62.3%
Cash Flow from Investing Activities Rs m -343 246 -
Cash Flow from Financing Activities Rs m 0 -332 -
Net Cash Flow Rs m -54 22 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SREELEATHERS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.8, an decline from the EPS of Rs 11.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 148.9, stands at 30.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 4.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 26.2 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 68.8 35.9
TTM Earnings per share Rs 11.4 4.8
Diluted earnings per share Rs 12.5 4.8
Price to Cash Flow x 9.6 26.2
TTM P/E ratio x 9.9 30.7
Price / Book Value ratio x 1.2 1.0
Market Cap Rs m 4,018 3,246
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SREELEATHERS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.0x during FY21, from 2.0x 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 deteriorated and stood at 44.6x during FY21, from 251.6x 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 3.6% during FY21, from 8.9% 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 declined and down at 4.9% during FY21, from 12.1% 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 3.5% during FY21, from 8.5% 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 2.0 2.0
Debtors’ Days Days 1,472,259 1,727,709
Interest coverage x 251.6 44.6
Debt to equity ratio x 0.0 0.0
Return on assets % 8.5 3.5
Return on equity % 8.9 3.6
Return on capital employed % 12.1 4.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SREELEATHERS Share Price Performance

Over the last one year, SREELEATHERS share price has moved up from Rs 124.5 to Rs 148.9, registering a gain of Rs 24.4 or around 19.6%.

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

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

Annual Report FAQs

What is the current share price of SREELEATHERS?

SREELEATHERS currently trades at Rs 280.3 per share. You can check out the latest share price performance of SREELEATHERS here...

What was the revenue of SREELEATHERS in FY21? How does it compare to earlier years?

The revenues of SREELEATHERS stood at Rs 838 m in FY21, which was down -51.7% compared to Rs 1,734 m reported in FY20.

SREELEATHERS' revenue has fallen from Rs 1,010 m in FY17 to Rs 838 m in FY21.

Over the past 5 years, the revenue of SREELEATHERS has grown at a CAGR of -4.6%.

What was the net profit of SREELEATHERS in FY21? How does it compare to earlier years?

The net profit of SREELEATHERS stood at Rs 112 m in FY21, which was down -61.2% compared to Rs 288 m reported in FY20.

This compares to a net profit of Rs 311 m in FY19 and a net profit of Rs 214 m in FY18.

Over the past 5 years, SREELEATHERS net profit has grown at a CAGR of -4.5%.

What does the cash flow statement of SREELEATHERS 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 SREELEATHERS reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 109 m as compared to Rs 289 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 246 m as compared to Rs -343 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -332 m as compared to Rs 0 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations142278155289109
From Investments-161-41-321-343246
From Financial Activity-3-1-150-332
Net Cashflow-22235-182-5422

What does the Key Ratio analysis of SREELEATHERS 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 SREELEATHERS reveals:

  • Operating profit margins witnessed a fall and stood at 19.5% in FY21 as against 23.1% in FY20.
  • Net profit margins declined from 16.6% in FY20 to 13.4% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)20.822.826.923.119.5
Net Profit Margin (%)13.515.218.516.613.4
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of SREELEATHERS

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