SUZLON ENERGY 2020-21 Annual Report Analysis

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SUZLON ENERGY 2020-21 Annual Report Analysis
Fri, 22 Oct

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 89.7% 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 % -89.7 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ALERT: Top Investment Recommendation for 2022

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 7.1, stands at 12.4 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 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 17.4 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 -3.1 0.1
Price to Cash Flow x -1.7 17.4
TTM P/E ratio x 7.5 12.4
Price / Book Value ratio x -0.2 -1.3
Market Cap Rs m 37,558 62,274
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 3.2 to Rs 7.1, registering a gain of Rs 3.8 or around 118.6%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 18,716.0 (down 0.4%). Over the last one year it has moved up from 12,224.5 to 18,716.0, a gain of 6,492 points (up 53.1%).

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

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

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Related Views on News

SUZLON ENERGY Announces Quarterly Results (1QFY22); Net Profit Up 100.8% (Quarterly Result Update)

Aug 16, 2021 | Updated on Aug 16, 2021

For the quarter ended June 2021, SUZLON ENERGY has posted a net profit of Rs 33 m (up 100.8% YoY). Sales on the other hand came in at Rs 11 bn (up 118.3% YoY). Read on for a complete analysis of SUZLON ENERGY's quarterly results.

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