SWAN ENERGY 2020-21 Annual Report Analysis

Wed, 31 Mar

SWAN 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.

SWAN ENERGY Income Statement Analysis

• Operating income during the year fell 6.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.1% in FY21 as against 15.3% in FY20.
• Depreciation charges increased by 186.9% and finance costs increased by 114.7% YoY, respectively.
• Other income declined by 53.8% YoY.
• Net profit for the year grew by 1319.7% YoY.
• Net profit margins during the year declined from 1.4% in FY20 to 21.4% in FY21.

SWAN ENERGY Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,408	3,205	-6.0%
Other income	Rs m	85	39	-53.8%
Total Revenues	Rs m	3,494	3,244	-7.1%
Gross profit	Rs m	521	677	30.1%
Depreciation	Rs m	145	417	186.9%
Interest	Rs m	503	1,080	114.7%
Profit before tax	Rs m	-42	-780	1,736.9%
Tax	Rs m	6	-94	-1,715.4%
Profit after tax	Rs m	-48	-686	1,319.7%
Gross profit margin	%	15.3	21.1
Effective tax rate	%	-13.7	12.1
Net profit margin	%	-1.4	-21.4

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SWAN ENERGY Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 15 billion as compared to Rs 18 billion in FY20, thereby witnessing an decrease of -16.2%.
• Long-term debt stood at Rs 20 billion as compared to Rs 2 billion during FY20, a growth of 980.9%.
• Current assets rose 22% and stood at Rs 5 billion, while fixed assets rose 44% and stood at Rs 44 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 49 billion as against Rs 35 billion during FY20, thereby witnessing a growth of 41%.

SWAN ENERGY Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	9,148	8,743	-4.4
Current Liabilities	Rs m	18,026	15,110	-16.2
Long-term Debt	Rs m	1,847	19,964	980.9
Total Liabilities	Rs m	34,890	49,292	41.3
Current assets	Rs m	4,377	5,356	22.4
Fixed Assets	Rs m	30,513	43,936	44.0
Total Assets	Rs m	34,890	49,292	41.3

SWAN ENERGY Cash Flow Statement Analysis

• SWAN ENERGY's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -20 billion, an improvement of 517.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 18 billion, an improvement of 312% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 619 million from the Rs 84 million net cash flows seen during FY20.

SWAN 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	-951	3,025	-
Cash Flow from Investing Activities	Rs m	-3,239	-20,007	-
Cash Flow from Financing Activities	Rs m	4,274	17,601	311.8%
Net Cash Flow	Rs m	84	619	633.0%

Current Valuations for SWAN ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.8, an decline from the EPS of Rs -0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 135.9, stands at -52.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 10.4 times.
• The company's price to cash flow (P/CF) ratio stood at -115.9 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	14.0	13.1
TTM Earnings per share	Rs	-0.2	-2.8
Diluted earnings per share	Rs	-0.2	-2.6
Price to Cash Flow	x	273.3	-115.9
TTM P/E ratio	x	-547.9	-52.3
Price / Book Value ratio	x	3.4	3.6
Market Cap	Rs m	30,721	31,240
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for SWAN ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.4x during FY21, from 0.2x 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 deteriorated and stood at 0.3x during FY21, from 0.9x 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 -7.8% during FY21, from -0.5% 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 declined and down at 1.0% during FY21, from 4.2% 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 0.8% during FY21, from 1.3% 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	0.2	0.4
Debtors’ Days	Days	580	327
Interest coverage	x	0.9	0.3
Debt to equity ratio	x	0.2	2.3
Return on assets	%	1.3	0.8
Return on equity	%	-0.5	-7.8
Return on capital employed	%	4.2	1.0

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

SWAN ENERGY Share Price Performance

Over the last one year, SWAN ENERGY share price has moved up from Rs 100.4 to Rs 135.9, registering a gain of Rs 35.6 or around 35.4%.

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

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

Read: Latest Annual Report Analysis of SWAN ENERGY