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SWARAJ ENGINES 2020-21 Annual Report Analysis
Wed, 31 Mar

SWARAJ ENGINES 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.

SWARAJ ENGINES Income Statement Analysis

  • Operating income during the year rose 27.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 35.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.7% in FY21 as against 13.0% in FY20.
  • Depreciation charges decreased by 1.8% and finance costs decreased by 78.6% YoY, respectively.
  • Other income declined by 32.8% YoY.
  • Net profit for the year grew by 30.3% YoY.
  • Net profit margins during the year grew from 9.2% in FY20 to 9.4% in FY21.

SWARAJ ENGINES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 7,733 9,866 27.6%
Other income Rs m 128 86 -32.8%
Total Revenues Rs m 7,861 9,952 26.6%
Gross profit Rs m 1,004 1,356 35.1%
Depreciation Rs m 201 198 -1.8%
Interest Rs m 0 0 -78.6%
Profit before tax Rs m 931 1,245 33.7%
Tax Rs m 220 319 45.0%
Profit after tax Rs m 710 925 30.3%
Gross profit margin % 13.0 13.7
Effective tax rate % 23.7 25.7
Net profit margin % 9.2 9.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SWARAJ ENGINES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 1 billion in FY20, thereby witnessing an increase of 55.6%.
  • Current assets rose 48% and stood at Rs 4 billion, while fixed assets fell 12% and stood at Rs 990 million in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 5 billion as against Rs 4 billion during FY20, thereby witnessing a growth of 29%.

SWARAJ ENGINES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 2,352 2,800 19.0
 
Current Liabilities Rs m 1,103 1,715 55.6
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 3,550 4,584 29.1
 
Current assets Rs m 2,428 3,594 48.0
Fixed Assets Rs m 1,122 990 -11.8
Total Assets Rs m 3,550 4,584 29.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SWARAJ ENGINES Cash Flow Statement Analysis

  • SWARAJ ENGINES's cash flow from operating activities (CFO) during FY21 stood at Rs 280 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 563 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -487 million, an improvement of 33% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 355 million from the Rs -5 million net cash flows seen during FY20.

SWARAJ ENGINES 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 996 280 -71.9%
Cash Flow from Investing Activities Rs m -269 563 -
Cash Flow from Financing Activities Rs m -731 -487 -
Net Cash Flow Rs m -5 355 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SWARAJ ENGINES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 76.2, an improvement from the EPS of Rs 58.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,312.2, stands at 17.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.7 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.0 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 637.5 812.7
TTM Earnings per share Rs 58.6 76.2
Diluted earnings per share Rs 58.5 76.2
Price to Cash Flow x 12.0 14.0
TTM P/E ratio x 15.4 17.2
Price / Book Value ratio x 5.8 5.6
Market Cap Rs m 13,726 15,726
Dividends per share (Unadj.) Rs 40.0 69.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SWARAJ ENGINES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY21, from 2.2x 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 improved and stood at 41,495.0x during FY21, from 6,649.1x 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 33.1% during FY21, from 30.2% 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 44.5% during FY21, from 39.6% 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 20.2% during FY21, from 20.0% 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 2.2 2.1
Debtors’ Days Days 20 419
Interest coverage x 6,649.1 41,495.0
Debt to equity ratio x 0.0 0.0
Return on assets % 20.0 20.2
Return on equity % 30.2 33.1
Return on capital employed % 39.6 44.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how SWARAJ ENGINES has performed over the last 5 years, please visit here.

SWARAJ ENGINES Share Price Performance

Over the last one year, SWARAJ ENGINES share price has moved up from Rs 900.0 to Rs 1,312.2, registering a gain of Rs 412.2 or around 45.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

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

(To know more, check out historical annual results for SWARAJ ENGINES and quarterly results for SWARAJ ENGINES)

Annual Report FAQs

What is the current share price of SWARAJ ENGINES?

SWARAJ ENGINES currently trades at Rs 1,617.4 per share. You can check out the latest share price performance of SWARAJ ENGINES here...

What was the revenue of SWARAJ ENGINES in FY21? How does it compare to earlier years?

The revenues of SWARAJ ENGINES stood at Rs 9,952 m in FY21, which was up 26.6% compared to Rs 7,861 m reported in FY20.

SWARAJ ENGINES' revenue has grown from Rs 6,010 m in FY17 to Rs 9,952 m in FY21.

Over the past 5 years, the revenue of SWARAJ ENGINES has grown at a CAGR of 13.4%.

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

The net profit of SWARAJ ENGINES stood at Rs 925 m in FY21, which was up 30.3% compared to Rs 710 m reported in FY20.

This compares to a net profit of Rs 824 m in FY19 and a net profit of Rs 801 m in FY18.

Over the past 5 years, SWARAJ ENGINES net profit has grown at a CAGR of 7.7%.

What does the cash flow statement of SWARAJ ENGINES 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 SWARAJ ENGINES reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 280 m as compared to Rs 996 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 563 m as compared to Rs -269 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -487 m as compared to Rs -731 m in FY20.

Here's the cash flow statement of SWARAJ ENGINES for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations823893688996280
From Investments-31947538-269563
From Financial Activity-491-1,357-729-731-487
Net Cashflow1311-3-5355

What does the Key Ratio analysis of SWARAJ ENGINES 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 SWARAJ ENGINES reveals:

  • Operating profit margins witnessed a fall and down at 13.7% in FY21 as against 13.0% in FY20.
  • Net profit margins grew from 9.2% in FY20 to 9.4% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of SWARAJ ENGINES for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)17.816.315.113.013.7
Net Profit Margin (%)11.810.79.59.29.4
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of SWARAJ ENGINES

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