SATIA INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

SATIA INDUSTRIES 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.

SATIA INDUSTRIES Income Statement Analysis

• Operating income during the year fell 27.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.0% in FY21 as against 21.2% in FY20.
• Depreciation charges increased by 7.0% and finance costs decreased by 13.0% YoY, respectively.
• Other income declined by 58.5% YoY.
• Net profit for the year declined by 46.0% YoY.
• Net profit margins during the year declined from 11.4% in FY20 to 8.4% in FY21.

SATIA INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	8,086	5,884	-27.2%
Other income	Rs m	188	78	-58.5%
Total Revenues	Rs m	8,274	5,962	-27.9%
Gross profit	Rs m	1,713	1,351	-21.2%
Depreciation	Rs m	546	584	7.0%
Interest	Rs m	202	176	-13.0%
Profit before tax	Rs m	1,153	668	-42.0%
Tax	Rs m	234	173	-26.3%
Profit after tax	Rs m	918	495	-46.0%
Gross profit margin	%	21.2	23.0
Effective tax rate	%	20.3	25.9
Net profit margin	%	11.4	8.4

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SATIA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 1.1%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY20, a growth of 43.5%.
• Current assets fell 3% and stood at Rs 2 billion, while fixed assets rose 28% and stood at Rs 8 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 10 billion as against Rs 8 billion during FY20, thereby witnessing a growth of 19%.

SATIA INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,955	4,453	12.6
Current Liabilities	Rs m	1,896	1,917	1.1
Long-term Debt	Rs m	1,588	2,279	43.5
Total Liabilities	Rs m	8,419	10,015	19.0
Current assets	Rs m	2,468	2,391	-3.1
Fixed Assets	Rs m	5,951	7,623	28.1
Total Assets	Rs m	8,419	10,015	19.0

SATIA INDUSTRIES Cash Flow Statement Analysis

• SATIA INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 2.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 8.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 691 million, an improvement of 20% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -10 million from the Rs 13 million net cash flows seen during FY20.

SATIA INDUSTRIES 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	1,497	1,537	2.7%
Cash Flow from Investing Activities	Rs m	-2,059	-2,238	-
Cash Flow from Financing Activities	Rs m	575	691	20.2%
Net Cash Flow	Rs m	13	-10	-

Current Valuations for SATIA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.0, an decline from the EPS of Rs 9.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 81.4, stands at 16.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 9.6 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	80.9	58.8
TTM Earnings per share	Rs	9.2	5.0
Diluted earnings per share	Rs	9.2	5.0
Price to Cash Flow	x	4.6	9.6
TTM P/E ratio	x	7.3	16.4
Price / Book Value ratio	x	10.9	2.3
Market Cap	Rs m	43,300	10,345
Dividends per share (Unadj.)	Rs	0.2	0.1

Ratio Analysis for SATIA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY21, from 1.3x 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 4.8x during FY21, from 6.7x 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 11.1% during FY21, from 23.2% 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 declined and down at 12.5% during FY21, from 24.4% 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 6.7% during FY21, from 13.3% 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	1.3	1.2
Debtors’ Days	Days	597	563
Interest coverage	x	6.7	4.8
Debt to equity ratio	x	0.4	0.5
Return on assets	%	13.3	6.7
Return on equity	%	23.2	11.1
Return on capital employed	%	24.4	12.5

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

SATIA INDUSTRIES Share Price Performance

Over the last one year, SATIA INDUSTRIES share price has moved up from Rs 67.0 to Rs 81.4, registering a gain of Rs 14.4 or around 21.5%.

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

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

Read: Latest Annual Report Analysis of SATIA INDUSTRIES