SUTLEJ TEXTILES 2020-21 Annual Report Analysis

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SUTLEJ TEXTILES 2020-21 Annual Report Analysis
Thu, 18 Nov

SUTLEJ TEXTILES 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.

SUTLEJ TEXTILES Income Statement Analysis

  • Operating income during the year fell 22.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 37.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.5% in FY21 as against 6.9% in FY20.
  • Depreciation charges decreased by 5.5% and finance costs decreased by 17.4% YoY, respectively.
  • Other income grew by 22.7% YoY.
  • Net profit for the year declined by 113.2% YoY.
  • Net profit margins during the year declined from 1.1% in FY20 to 0.2% in FY21.

SUTLEJ TEXTILES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 24,167 18,840 -22.0%
Other income Rs m 254 311 22.7%
Total Revenues Rs m 24,420 19,152 -21.6%
Gross profit Rs m 1,678 1,043 -37.8%
Depreciation Rs m 1,011 956 -5.5%
Interest Rs m 457 378 -17.4%
Profit before tax Rs m 463 21 -95.5%
Tax Rs m 186 57 -69.2%
Profit after tax Rs m 277 -37 -113.2%
Gross profit margin % 6.9 5.5
Effective tax rate % 40.2 276.0
Net profit margin % 1.1 -0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SUTLEJ TEXTILES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 7 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 7.8%.
  • Long-term debt down at Rs 4 billion as compared to Rs 5 billion during FY20, a fall of 6.0%.
  • Current assets rose 1% and stood at Rs 9 billion, while fixed assets rose 0% and stood at Rs 13 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 21 billion as against Rs 21 billion during FY20, thereby witnessing a growth of 1%.

SUTLEJ TEXTILES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 9,591 9,546 -0.5
 
Current Liabilities Rs m 6,244 6,731 7.8
Long-term Debt Rs m 4,696 4,412 -6.0
Total Liabilities Rs m 21,248 21,386 0.7
 
Current assets Rs m 8,702 8,789 1.0
Fixed Assets Rs m 12,545 12,597 0.4
Total Assets Rs m 21,248 21,386 0.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SUTLEJ TEXTILES Cash Flow Statement Analysis

  • SUTLEJ TEXTILES's cash flow from operating activities (CFO) during FY21 stood at Rs 887 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -915 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 34 million, an improvement of 103% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 6 million from the Rs 17 million net cash flows seen during FY20.

SUTLEJ TEXTILES 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 3,189 887 -72.2%
Cash Flow from Investing Activities Rs m -2,086 -915 -
Cash Flow from Financing Activities Rs m -1,086 34 -
Net Cash Flow Rs m 17 6 -66.1%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SUTLEJ TEXTILES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.2, an decline from the EPS of Rs 1.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 77.9, stands at 12.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.9 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 147.5 115.0
TTM Earnings per share Rs 1.7 -0.2
Diluted earnings per share Rs 1.7 -0.2
Price to Cash Flow x 9.9 13.9
TTM P/E ratio x 12.6 12.6
Price / Book Value ratio x 0.5 0.6
Market Cap Rs m 12,754 12,754
Dividends per share (Unadj.) Rs 0.3 0.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SUTLEJ TEXTILES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY21, from 1.4x 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 1.1x during FY21, from 2.0x 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 declined and down at -0.4% during FY21, from 2.9% 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 2.9% during FY21, from 6.4% 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 1.6% during FY21, from 3.5% 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 1.4 1.3
Debtors’ Days Days 4 5
Interest coverage x 2.0 1.1
Debt to equity ratio x 0.5 0.5
Return on assets % 3.5 1.6
Return on equity % 2.9 -0.4
Return on capital employed % 6.4 2.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SUTLEJ TEXTILES Share Price Performance

Over the last one year, SUTLEJ TEXTILES share price has moved up from Rs 27.3 to Rs 77.9, registering a gain of Rs 50.6 or around 185.2%.

Overall, the S&P BSE SENSEX is up 35.5% over the year.

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

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