SUBROS. 2020-21 Annual Report Analysis

Wed, 31 Mar

SUBROS. 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.

SUBROS. Income Statement Analysis

• Operating income during the year fell 9.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 37.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.0% in FY21 as against 11.6% in FY20.
• Depreciation charges increased by 2.0% and finance costs decreased by 55.3% YoY, respectively.
• Other income declined by 3.2% YoY.
• Net profit for the year declined by 45.0% YoY.
• Net profit margins during the year declined from 4.3% in FY20 to 2.6% in FY21.

SUBROS. Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	19,928	17,957	-9.9%
Other income	Rs m	203	197	-3.2%
Total Revenues	Rs m	20,131	18,153	-9.8%
Gross profit	Rs m	2,303	1,444	-37.3%
Depreciation	Rs m	903	921	2.0%
Interest	Rs m	363	162	-55.3%
Profit before tax	Rs m	1,240	557	-55.1%
Tax	Rs m	391	90	-76.9%
Profit after tax	Rs m	849	467	-45.0%
Gross profit margin	%	11.6	8.0
Effective tax rate	%	31.5	16.2
Net profit margin	%	4.3	2.6

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SUBROS. Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 6 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 1.1%.
• Long-term debt stood at Rs 250 million as compared to Rs 228 million during FY20, a growth of 9.7%.
• Current assets rose 14% and stood at Rs 6 billion, while fixed assets fell 1% and stood at Rs 9 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 15 billion as against Rs 15 billion during FY20, thereby witnessing a growth of 5%.

SUBROS. Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,520	7,951	5.7
Current Liabilities	Rs m	5,992	6,058	1.1
Long-term Debt	Rs m	228	250	9.7
Total Liabilities	Rs m	14,680	15,433	5.1
Current assets	Rs m	5,632	6,447	14.5
Fixed Assets	Rs m	9,048	8,986	-0.7
Total Assets	Rs m	14,680	15,433	5.1

SUBROS. Cash Flow Statement Analysis

• SUBROS.'s cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -584 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion, an improvement of 18% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 284 million from the Rs -27 million net cash flows seen during FY20.

SUBROS. 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	2,388	2,083	-12.8%
Cash Flow from Investing Activities	Rs m	-933	-584	-
Cash Flow from Financing Activities	Rs m	-1,482	-1,216	-
Net Cash Flow	Rs m	-27	284	-

Current Valuations for SUBROS.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.2, an decline from the EPS of Rs 13.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 308.3, stands at 43.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.1 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	305.5	275.2
TTM Earnings per share	Rs	13.0	7.2
Diluted earnings per share	Rs	13.0	7.2
Price to Cash Flow	x	4.8	11.5
TTM P/E ratio	x	9.9	43.1
Price / Book Value ratio	x	1.8	2.0
Market Cap	Rs m	13,812	15,932
Dividends per share (Unadj.)	Rs	0.8	0.7

Ratio Analysis for SUBROS.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY21, from 0.9x 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 4.4x during FY21, from 4.4x 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 5.9% during FY21, from 11.3% 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 8.8% during FY21, from 20.7% 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 declined and down at 4.1% during FY21, from 8.3% 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	0.9	1.1
Debtors’ Days	Days	347	415
Interest coverage	x	4.4	4.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.3	4.1
Return on equity	%	11.3	5.9
Return on capital employed	%	20.7	8.8

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

SUBROS. Share Price Performance

Over the last one year, SUBROS. share price has moved up from Rs 129.2 to Rs 308.3, registering a gain of Rs 179.1 or around 138.6%.

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

(To know more, check out historical annual results for SUBROS. and quarterly results for SUBROS.)

Read: Latest Annual Report Analysis of SUBROS.