SREE RAYAL 2020-21 Annual Report Analysis

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SREE RAYAL 2020-21 Annual Report Analysis
Thu, 18 Nov

SREE RAYAL 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.

SREE RAYAL Income Statement Analysis

  • Operating income during the year rose 32.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 27.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.3% in FY21 as against 14.8% in FY20.
  • Depreciation charges increased by 0.7% and finance costs decreased by 46.1% YoY, respectively.
  • Other income grew by 69.3% YoY.
  • Net profit for the year grew by 59.8% YoY.
  • Net profit margins during the year grew from 5.5% in FY20 to 6.6% in FY21.

SREE RAYAL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 6,891 9,108 32.2%
Other income Rs m 39 66 69.3%
Total Revenues Rs m 6,930 9,175 32.4%
Gross profit Rs m 1,020 1,303 27.8%
Depreciation Rs m 503 506 0.7%
Interest Rs m 102 55 -46.1%
Profit before tax Rs m 454 808 77.9%
Tax Rs m 75 203 169.0%
Profit after tax Rs m 379 606 59.8%
Gross profit margin % 14.8 14.3
Effective tax rate % 16.6 25.1
Net profit margin % 5.5 6.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SREE RAYAL Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 1 billion in FY20, thereby witnessing an increase of 28.0%.
  • Long-term debt down at Rs 5 million as compared to Rs 9 million during FY20, a fall of 45.8%.
  • Current assets rose 38% and stood at Rs 4 billion, while fixed assets rose 1% and stood at Rs 2 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 6 billion as against Rs 5 billion during FY20, thereby witnessing a growth of 22%.

SREE RAYAL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 3,116 3,880 24.5
 
Current Liabilities Rs m 1,436 1,838 28.0
Long-term Debt Rs m 9 5 -45.8
Total Liabilities Rs m 4,733 5,789 22.3
 
Current assets Rs m 2,761 3,797 37.5
Fixed Assets Rs m 1,972 1,992 1.0
Total Assets Rs m 4,733 5,789 22.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SREE RAYAL Cash Flow Statement Analysis

  • SREE RAYAL's cash flow from operating activities (CFO) during FY21 stood at Rs 706 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 206.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 102 million, an improvement of 147% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -347 million from the Rs 399 million net cash flows seen during FY20.

SREE RAYAL 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 993 706 -28.9%
Cash Flow from Investing Activities Rs m -376 -1,154 -
Cash Flow from Financing Activities Rs m -218 102 -
Net Cash Flow Rs m 399 -347 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SREE RAYAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.3, an improvement from the EPS of Rs 22.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 324.0, stands at 8.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.0 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 401.6 530.8
TTM Earnings per share Rs 22.1 35.3
Diluted earnings per share Rs 22.1 35.3
Price to Cash Flow x 6.3 5.0
TTM P/E ratio x 8.0 8.0
Price / Book Value ratio x 0.7 0.9
Market Cap Rs m 5,561 5,561
Dividends per share (Unadj.) Rs 2.5 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SREE RAYAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.1x during FY21, from 1.9x 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 15.8x during FY21, from 5.5x 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 15.6% during FY21, from 12.2% 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 22.2% during FY21, from 17.8% 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 11.4% during FY21, from 10.2% 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 1.9 2.1
Debtors’ Days Days 434 387
Interest coverage x 5.5 15.8
Debt to equity ratio x 0.0 0.0
Return on assets % 10.2 11.4
Return on equity % 12.2 15.6
Return on capital employed % 17.8 22.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SREE RAYAL Share Price Performance

Over the last one year, SREE RAYAL share price has moved up from Rs 220.4 to Rs 324.0, registering a gain of Rs 103.7 or around 47.0%.

Overall, the S&P BSE SENSEX is up 35.4% over the year.

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

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