SUBROS. 2021-22 Annual Report Analysis

Tue, 19 Jul

SUBROS. has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

SUBROS. Income Statement Analysis

• Operating income during the year rose 24.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.6% in FY22 as against 8.0% in FY21.
• Depreciation charges increased by 11.1% and finance costs decreased by 32.8% YoY, respectively.
• Other income declined by 51.5% YoY.
• Net profit for the year declined by 31.1% YoY.
• Net profit margins during the year declined from 2.6% in FY21 to 1.4% in FY22.

SUBROS. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	17,957	22,386	24.7%
Other income	Rs m	197	95	-51.5%
Total Revenues	Rs m	18,153	22,482	23.8%
Gross profit	Rs m	1,444	1,487	3.0%
Depreciation	Rs m	921	1,024	11.1%
Interest	Rs m	162	109	-32.8%
Profit before tax	Rs m	557	450	-19.2%
Tax	Rs m	90	128	42.0%
Profit after tax	Rs m	467	322	-31.1%
Gross profit margin	%	8.0	6.6
Effective tax rate	%	16.2	28.4
Net profit margin	%	2.6	1.4

SUBROS. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 6 billion as compared to Rs 6 billion in FY21, thereby witnessing an increase of 5.8%.
• Long-term debt down at Rs 134 million as compared to Rs 250 million during FY21, a fall of 46.5%.
• Current assets rose 9% and stood at Rs 7 billion, while fixed assets rose 1% and stood at Rs 9 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 16 billion as against Rs 15 billion during FY21, thereby witnessing a growth of 4%.

SUBROS. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,951	8,238	3.6
Current Liabilities	Rs m	5,925	6,271	5.8
Long-term Debt	Rs m	250	134	-46.5
Total Liabilities	Rs m	15,382	16,016	4.1
Current assets	Rs m	6,314	6,896	9.2
Fixed Assets	Rs m	9,068	9,120	0.6
Total Assets	Rs m	15,382	16,016	4.1

SUBROS. Cash Flow Statement Analysis

• SUBROS.'s cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -996 million, an improvement of 70.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -526 million, an improvement of 22% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -15 million from the Rs 284 million net cash flows seen during FY21.

SUBROS. Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,545	1,508	-2.4%
Cash Flow from Investing Activities	Rs m	-584	-996	-
Cash Flow from Financing Activities	Rs m	-677	-526	-
Net Cash Flow	Rs m	284	-15	-

Current Valuations for SUBROS.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.9, an decline from the EPS of Rs 7.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 314.3, stands at 63.6 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 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 17.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	275.2	343.1
TTM Earnings per share	Rs	7.2	4.9
Diluted earnings per share	Rs	7.2	4.9
Price to Cash Flow	x	14.5	17.0
TTM P/E ratio	x	43.1	63.6
Price / Book Value ratio	x	2.0	2.8
Market Cap	Rs m	15,932	22,878
Dividends per share (Unadj.)	Rs	0.7	0.7

Ratio Analysis for SUBROS.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY22, from 1.1x during FY21. 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 5.1x during FY22, from 4.4x during FY21. 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 3.9% during FY22, from 5.9% during FY22. 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 6.7% during FY22, from 8.8% during FY21. 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 2.7% during FY22, from 4.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.1	1.1
Debtors’ Days	Days	415	369
Interest coverage	x	4.4	5.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.1	2.7
Return on equity	%	5.9	3.9
Return on capital employed	%	8.8	6.7

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 down from Rs 325.5 to Rs 0.0, registering a loss of Rs 325.5 or around 100.0%.

Overall, the NIFTY 50 is down 0.6% 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.