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SUZLON ENERGY 2020-21 Annual Report Analysis
Wed, 31 Mar

SUZLON ENERGY 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.

SUZLON ENERGY Income Statement Analysis

  • Operating income during the year rose 12.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 244.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 40.0% in FY21 as against 31.1% in FY20.
  • Depreciation charges decreased by 38.3% and finance costs decreased by 27.1% YoY, respectively.
  • Other income declined by 28.0% YoY.
  • Net profit for the year declined by 103.7% YoY.
  • Net profit margins during the year grew from 90.5% in FY20 to 3.0% in FY21.

SUZLON ENERGY Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 29,729 33,457 12.5%
Other income Rs m 276 199 -28.0%
Total Revenues Rs m 30,005 33,656 12.2%
Gross profit Rs m -9,257 13,397 -244.7%
Depreciation Rs m 4,186 2,584 -38.3%
Interest Rs m 13,673 9,963 -27.1%
Profit before tax Rs m -26,840 1,050 -103.9%
Tax Rs m 74 46 -37.8%
Profit after tax Rs m -26,914 1,003 -103.7%
Gross profit margin % -31.1 40.0
Effective tax rate % -0.3 4.4
Net profit margin % -90.5 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SUZLON ENERGY Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 38 billion as compared to Rs 165 billion in FY20, thereby witnessing an decrease of -76.9%.
  • Long-term debt stood at Rs 60 billion as compared to Rs 8 billion during FY20, a growth of 616.0%.
  • Current assets rose 3% and stood at Rs 48 billion, while fixed assets fell 4% and stood at Rs 18 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 66 billion as against Rs 65 billion during FY20, thereby witnessing a growth of 1%.

SUZLON ENERGY Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m -109,829 -35,879 -67.3
 
Current Liabilities Rs m 165,452 38,138 -76.9
Long-term Debt Rs m 8,418 60,272 616.0
Total Liabilities Rs m 65,304 66,011 1.1
 
Current assets Rs m 46,946 48,475 3.3
Fixed Assets Rs m 18,358 17,536 -4.5
Total Assets Rs m 65,304 66,011 1.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SUZLON ENERGY Cash Flow Statement Analysis

  • SUZLON ENERGY's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -237 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs 77 million net cash flows seen during FY20.

SUZLON ENERGY 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 -9,290 5,305 -
Cash Flow from Investing Activities Rs m -325 -237 -
Cash Flow from Financing Activities Rs m 9,692 -3,266 -
Net Cash Flow Rs m 77 1,802 2,236.8%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SUZLON ENERGY

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an improvement from the EPS of Rs -5.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 5.0, stands at 45.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -1.3 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.8 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 5.6 3.9
TTM Earnings per share Rs -5.1 0.1
Diluted earnings per share Rs -2.9 0.1
Price to Cash Flow x -0.8 12.8
TTM P/E ratio x -0.7 45.7
Price / Book Value ratio x -0.2 -1.3
Market Cap Rs m 25,375 45,858
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SUZLON ENERGY

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 0.3x 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 1.1x during FY21, from -1.0x 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 -2.8% during FY21, from 24.5% 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 45.1% during FY21, from 13.0% 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 16.6% during FY21, from -20.3% 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 0.3 1.3
Debtors’ Days Days 17 13
Interest coverage x -1.0 1.1
Debt to equity ratio x -0.1 -1.7
Return on assets % -20.3 16.6
Return on equity % 24.5 -2.8
Return on capital employed % 13.0 45.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

SUZLON ENERGY Share Price Performance

Over the last one year, SUZLON ENERGY share price has moved up from Rs 2.0 to Rs 5.0, registering a gain of Rs 3.0 or around 149.0%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 14,820.5 (down 0.1%). Over the last one year it has moved up from 10,020.9 to 14,820.5, a gain of 4,800 points (up 47.9%).

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

(To know more, check out historical annual results for SUZLON ENERGY and quarterly results for SUZLON ENERGY)

Annual Report FAQs

What is the current share price of SUZLON ENERGY?

SUZLON ENERGY currently trades at Rs 41.9 per share. You can check out the latest share price performance of SUZLON ENERGY here...

What was the revenue of SUZLON ENERGY in FY21? How does it compare to earlier years?

The revenues of SUZLON ENERGY stood at Rs 33,656 m in FY21, which was up 12.2% compared to Rs 30,005 m reported in FY20.

SUZLON ENERGY's revenue has fallen from Rs 131,202 m in FY17 to Rs 33,656 m in FY21.

Over the past 5 years, the revenue of SUZLON ENERGY has grown at a CAGR of -28.8%.

What was the net profit of SUZLON ENERGY in FY21? How does it compare to earlier years?

The net profit of SUZLON ENERGY stood at Rs 1,003 m in FY21, which was down -103.7% compared to Rs -26,914 m reported in FY20.

This compares to a net loss of Rs -15,311 m in FY19 and a net loss of Rs -3,892 m in FY18.

Over the past 5 years, SUZLON ENERGY net profit has grown at a CAGR of -42.2%.

What does the cash flow statement of SUZLON ENERGY reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of SUZLON ENERGY reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 5,305 m as compared to Rs -9,290 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -237 m as compared to Rs -325 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -3,266 m as compared to Rs 9,692 m in FY20.

Here's the cash flow statement of SUZLON ENERGY for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations16,019-1,09412,667-9,2905,305
From Investments-6,434-1,3351,252-325-237
From Financial Activity-12,4904,924-18,9839,692-3,266
Net Cashflow-2,9052,450-5,065771,802

What does the Key Ratio analysis of SUZLON ENERGY reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of SUZLON ENERGY reveals:

  • Operating profit margins witnessed a fall and down at 40.0% in FY21 as against 31.1% in FY20.
  • Net profit margins grew from 90.5% in FY20 to 3.0% in FY21.
  • Debt to Equity ratio for FY21 stood at -1.7 as compared to -0.1 in FY20.

Here's the ratio/financial analysis of SUZLON ENERGY for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)17.217.3-1.0-31.140.0
Net Profit Margin (%)7.1-4.8-30.5-90.53.0
Debt to Equity Ratio (x)-0.7-1.1-0.7-0.1-1.7

Read: Latest Annual Report Analysis of SUZLON ENERGY

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