SUMITOMO CHEMICAL INDIA 2020-21 Annual Report Analysis

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SUMITOMO CHEMICAL INDIA 2020-21 Annual Report Analysis
Fri, 22 Oct

SUMITOMO CHEMICAL INDIA 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.

SUMITOMO CHEMICAL INDIA Income Statement Analysis

  • Operating income during the year rose 9.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 60.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.5% in FY21 as against 12.5% in FY20.
  • Depreciation charges increased by 13.7% and finance costs decreased by 2.3% YoY, respectively.
  • Other income grew by 73.4% YoY.
  • Net profit for the year grew by 68.7% YoY.
  • Net profit margins during the year grew from 8.4% in FY20 to 13.0% in FY21.

SUMITOMO CHEMICAL INDIA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 24,247 26,449 9.1%
Other income Rs m 107 186 73.4%
Total Revenues Rs m 24,355 26,635 9.4%
Gross profit Rs m 3,039 4,881 60.6%
Depreciation Rs m 410 466 13.7%
Interest Rs m 71 69 -2.3%
Profit before tax Rs m 2,665 4,532 70.0%
Tax Rs m 618 1,079 74.5%
Profit after tax Rs m 2,047 3,453 68.7%
Gross profit margin % 12.5 18.5
Effective tax rate % 23.2 23.8
Net profit margin % 8.4 13.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SUMITOMO CHEMICAL INDIA Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 11 billion as compared to Rs 8 billion in FY20, thereby witnessing an increase of 28.5%.
  • Current assets rose 32% and stood at Rs 23 billion, while fixed assets rose 2% and stood at Rs 4 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 27 billion as against Rs 21 billion during FY20, thereby witnessing a growth of 27%.

SUMITOMO CHEMICAL INDIA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 12,218 15,412 26.1
 
Current Liabilities Rs m 8,399 10,792 28.5
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 21,051 26,701 26.8
 
Current assets Rs m 17,456 23,043 32.0
Fixed Assets Rs m 3,595 3,657 1.7
Total Assets Rs m 21,051 26,701 26.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SUMITOMO CHEMICAL INDIA Cash Flow Statement Analysis

  • SUMITOMO CHEMICAL INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion, an improvement of 92.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 118.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -471 million, an improvement of 23% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs 422 million net cash flows seen during FY20.

SUMITOMO CHEMICAL INDIA 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 2,214 4,254 92.2%
Cash Flow from Investing Activities Rs m -1,179 -2,577 -
Cash Flow from Financing Activities Rs m -614 -471 -
Net Cash Flow Rs m 422 1,207 186.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SUMITOMO CHEMICAL INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.9, an improvement from the EPS of Rs 4.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 390.5, stands at 52.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 5.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 49.7 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 48.6 53.0
TTM Earnings per share Rs 4.1 6.9
Diluted earnings per share Rs 4.1 6.9
Price to Cash Flow x 79.3 49.7
TTM P/E ratio x 52.4 52.4
Price / Book Value ratio x 8.9 8.5
Market Cap Rs m 194,891 194,891
Dividends per share (Unadj.) Rs 0.6 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SUMITOMO CHEMICAL INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.1x during FY21, from 2.1x 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 66.4x during FY21, from 38.6x 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 22.4% during FY21, from 16.8% 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 29.9% during FY21, from 22.4% 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 13.2% during FY21, from 10.1% 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 2.1 2.1
Debtors’ Days Days 128 117
Interest coverage x 38.6 66.4
Debt to equity ratio x 0.0 0.0
Return on assets % 10.1 13.2
Return on equity % 16.8 22.4
Return on capital employed % 22.4 29.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how SUMITOMO CHEMICAL INDIA has performed over the last 5 years, please visit here.

SUMITOMO CHEMICAL INDIA Share Price Performance

Over the last one year, SUMITOMO CHEMICAL INDIA share price has moved up from Rs 275.7 to Rs 390.5, registering a gain of Rs 114.8 or around 41.6%.

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

(To know more, check out historical annual results for SUMITOMO CHEMICAL INDIA and quarterly results for SUMITOMO CHEMICAL INDIA)

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