STEEL STRIPS WHEELS 2020-21 Annual Report Analysis

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STEEL STRIPS WHEELS 2020-21 Annual Report Analysis
Thu, 18 Nov

STEEL STRIPS WHEELS 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.

STEEL STRIPS WHEELS Income Statement Analysis

  • Operating income during the year rose 11.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 19.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.6% in FY21 as against 11.0% in FY20.
  • Depreciation charges increased by 0.5% and finance costs decreased by 5.3% YoY, respectively.
  • Other income declined by 26.2% YoY.
  • Net profit for the year grew by 110.0% YoY.
  • Net profit margins during the year grew from 1.5% in FY20 to 2.8% in FY21.

STEEL STRIPS WHEELS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 15,633 17,494 11.9%
Other income Rs m 221 163 -26.2%
Total Revenues Rs m 15,855 17,657 11.4%
Gross profit Rs m 1,712 2,038 19.0%
Depreciation Rs m 719 723 0.5%
Interest Rs m 887 839 -5.3%
Profit before tax Rs m 327 638 95.2%
Tax Rs m 93 146 57.6%
Profit after tax Rs m 234 493 110.0%
Gross profit margin % 11.0 11.6
Effective tax rate % 28.3 22.8
Net profit margin % 1.5 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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STEEL STRIPS WHEELS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 10 billion as compared to Rs 8 billion in FY20, thereby witnessing an increase of 25.5%.
  • Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY20, a fall of 14.0%.
  • Current assets rose 24% and stood at Rs 10 billion, while fixed assets rose 1% and stood at Rs 14 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 24 billion as against Rs 22 billion during FY20, thereby witnessing a growth of 9%.

STEEL STRIPS WHEELS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 6,959 7,473 7.4
 
Current Liabilities Rs m 7,904 9,923 25.5
Long-term Debt Rs m 4,418 3,798 -14.0
Total Liabilities Rs m 21,791 23,767 9.1
 
Current assets Rs m 7,663 9,508 24.1
Fixed Assets Rs m 14,128 14,259 0.9
Total Assets Rs m 21,791 23,767 9.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



STEEL STRIPS WHEELS Cash Flow Statement Analysis

  • STEEL STRIPS WHEELS's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 62.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -371 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -385 million from the Rs -293 million net cash flows seen during FY20.

STEEL STRIPS WHEELS 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 1,039 1,691 62.8%
Cash Flow from Investing Activities Rs m -693 -371 -
Cash Flow from Financing Activities Rs m -639 -1,706 -
Net Cash Flow Rs m -293 -385 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for STEEL STRIPS WHEELS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.6, an improvement from the EPS of Rs 15.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 894.9, stands at 7.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.5 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 1,002.8 1,120.7
TTM Earnings per share Rs 15.0 31.6
Diluted earnings per share Rs 15.0 31.6
Price to Cash Flow x 14.6 11.5
TTM P/E ratio x 7.5 7.5
Price / Book Value ratio x 1.4 1.1
Market Cap Rs m 13,951 13,969
Dividends per share (Unadj.) Rs 0.0 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for STEEL STRIPS WHEELS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated 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 improved and stood at 1.8x during FY21, from 1.4x 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 improved and stood at 6.6% during FY21, from 3.4% 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 improved and stood at 13.1% during FY21, from 10.7% 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 5.6% during FY21, from 5.1% 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 490 536
Interest coverage x 1.4 1.8
Debt to equity ratio x 0.6 0.5
Return on assets % 5.1 5.6
Return on equity % 3.4 6.6
Return on capital employed % 10.7 13.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how STEEL STRIPS WHEELS has performed over the last 5 years, please visit here.

STEEL STRIPS WHEELS Share Price Performance

Over the last one year, STEEL STRIPS WHEELS share price has moved up from Rs 252.9 to Rs 894.9, registering a gain of Rs 642.0 or around 253.8%.

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

(To know more, check out historical annual results for STEEL STRIPS WHEELS and quarterly results for STEEL STRIPS WHEELS)

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