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STERLITE TECH 2020-21 Annual Report Analysis
Wed, 31 Mar

STERLITE TECH 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.

STERLITE TECH Income Statement Analysis

  • Operating income during the year fell 6.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 20.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.9% in FY21 as against 18.7% in FY20.
  • Depreciation charges increased by 1.7% and finance costs decreased by 8.2% YoY, respectively.
  • Other income grew by 25.3% YoY.
  • Net profit for the year declined by 41.0% YoY.
  • Net profit margins during the year declined from 8.2% in FY20 to 5.2% in FY21.

STERLITE TECH Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 51,606 48,355 -6.3%
Other income Rs m 343 430 25.3%
Total Revenues Rs m 51,949 48,784 -6.1%
Gross profit Rs m 9,651 7,711 -20.1%
Depreciation Rs m 2,450 2,493 1.7%
Interest Rs m 2,210 2,030 -8.2%
Profit before tax Rs m 5,333 3,618 -32.2%
Tax Rs m 1,089 1,113 2.2%
Profit after tax Rs m 4,244 2,505 -41.0%
Gross profit margin % 18.7 15.9
Effective tax rate % 20.4 30.8
Net profit margin % 8.2 5.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

STERLITE TECH Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 45 billion as compared to Rs 40 billion in FY20, thereby witnessing an increase of 14.0%.
  • Long-term debt stood at Rs 13 billion as compared to Rs 10 billion during FY20, a growth of 29.5%.
  • Current assets rose 20% and stood at Rs 45 billion, while fixed assets fell 0% and stood at Rs 36 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 81 billion as against Rs 74 billion during FY20, thereby witnessing a growth of 10%.

STERLITE TECH Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 18,930 19,640 3.8
 
Current Liabilities Rs m 39,784 45,346 14.0
Long-term Debt Rs m 9,700 12,557 29.5
Total Liabilities Rs m 73,675 81,193 10.2
 
Current assets Rs m 37,802 45,347 20.0
Fixed Assets Rs m 35,873 35,846 -0.1
Total Assets Rs m 73,675 81,193 10.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



STERLITE TECH Cash Flow Statement Analysis

  • STERLITE TECH's cash flow from operating activities (CFO) during FY21 stood at Rs 6 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -6 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 232 million, an improvement of 134% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 464 million from the Rs 45 million net cash flows seen during FY20.

STERLITE TECH 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 6,964 6,385 -8.3%
Cash Flow from Investing Activities Rs m -6,266 -6,186 -
Cash Flow from Financing Activities Rs m -679 232 -
Net Cash Flow Rs m 45 464 937.8%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for STERLITE TECH

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.3, an decline from the EPS of Rs 10.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 194.1, stands at 30.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.4 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 127.8 121.9
TTM Earnings per share Rs 10.5 6.3
Diluted earnings per share Rs 10.7 6.3
Price to Cash Flow x 3.8 11.4
TTM P/E ratio x 5.9 30.4
Price / Book Value ratio x 3.1 2.9
Market Cap Rs m 58,323 57,061
Dividends per share (Unadj.) Rs 3.5 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for STERLITE TECH

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY21, from 1.0x 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 2.8x during FY21, from 3.4x 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 12.8% during FY21, from 22.4% 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 17.5% during FY21, from 26.3% 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 declined and down at 5.6% during FY21, from 8.8% 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 1.0 1.0
Debtors’ Days Days 11 11
Interest coverage x 3.4 2.8
Debt to equity ratio x 0.5 0.6
Return on assets % 8.8 5.6
Return on equity % 22.4 12.8
Return on capital employed % 26.3 17.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

STERLITE TECH Share Price Performance

Over the last one year, STERLITE TECH share price has moved up from Rs 63.8 to Rs 194.1, registering a gain of Rs 130.4 or around 204.5%.

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

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

Annual Report FAQs

What is the current share price of STERLITE TECH?

STERLITE TECH currently trades at Rs 110.8 per share. You can check out the latest share price performance of STERLITE TECH here...

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

The revenues of STERLITE TECH stood at Rs 48,784 m in FY21, which was down -6.1% compared to Rs 51,949 m reported in FY20.

STERLITE TECH's revenue has grown from Rs 23,276 m in FY17 to Rs 48,784 m in FY21.

Over the past 5 years, the revenue of STERLITE TECH has grown at a CAGR of 20.3%.

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

The net profit of STERLITE TECH stood at Rs 2,505 m in FY21, which was down -41.0% compared to Rs 4,244 m reported in FY20.

This compares to a net profit of Rs 5,778 m in FY19 and a net profit of Rs 3,651 m in FY18.

Over the past 5 years, STERLITE TECH net profit has grown at a CAGR of 3.2%.

What does the cash flow statement of STERLITE TECH 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 STERLITE TECH reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 6,385 m as compared to Rs 6,964 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -6,186 m as compared to Rs -6,266 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 232 m as compared to Rs -679 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations4,8857,2896,3116,9646,385
From Investments-2,323-5,822-11,721-6,266-6,186
From Financial Activity-1,869-1,5155,702-679232
Net Cashflow693-9129545464

What does the Key Ratio analysis of STERLITE TECH 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 STERLITE TECH reveals:

  • Operating profit margins witnessed a fall and stood at 15.9% in FY21 as against 18.7% in FY20.
  • Net profit margins declined from 8.2% in FY20 to 5.2% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.6 as compared to 0.5 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)21.022.621.218.715.9
Net Profit Margin (%)9.611.611.38.25.2
Debt to Equity Ratio (x)0.50.50.60.50.6

Read: Latest Annual Report Analysis of STERLITE TECH

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