STERLITE TECH 2020-21 Annual Report Analysis

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STERLITE TECH 2020-21 Annual Report Analysis
Fri, 22 Oct

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 5.1% 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 5.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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 303.3, stands at 34.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 24.1 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 18.3 24.1
TTM P/E ratio x 35.2 34.5
Price / Book Value ratio x 3.1 2.9
Market Cap Rs m 122,483 120,303
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 158.6 to Rs 303.3, registering a gain of Rs 144.7 or around 91.3%.

Overall, the S&P BSE SENSEX is up 50.0% over the year.

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

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Related Views on News

STERLITE TECH Announces Quarterly Results (1QFY22); Net Profit Up 3302.5% (Quarterly Result Update)

Jul 26, 2021 | Updated on Jul 26, 2021

For the quarter ended June 2021, STERLITE TECH has posted a net profit of Rs 970 m (up 3302.5% YoY). Sales on the other hand came in at Rs 13 bn (up 49.4% YoY). Read on for a complete analysis of STERLITE TECH's quarterly results.

STERLITE TECH. Announces Quarterly Results (4QFY20); Net Profit Down 53.4% (Quarterly Result Update)

May 14, 2020 | Updated on May 14, 2020

For the quarter ended March 2020, STERLITE TECH. has posted a net profit of Rs 772 m (down 53.4% YoY). Sales on the other hand came in at Rs 12 bn (down 35.2% YoY). Read on for a complete analysis of STERLITE TECH.'s quarterly results.

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