SYMPHONY 2019-20 Annual Report Analysis

Tue, 31 Mar

SYMPHONY has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

SYMPHONY Income Statement Analysis

• Operating income during the year rose 30.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 92.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.0% in FY20 as against 12.9% in FY19.
• Depreciation charges increased by 114.5% and finance costs increased by 61.4% YoY, respectively.
• Other income grew by 40.6% YoY.
• Net profit for the year grew by 98.5% YoY.
• Net profit margins during the year grew from 10.9% in FY19 to 16.5% in FY20.

SYMPHONY Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	8,436	11,026	30.7%
Other income	Rs m	389	547	40.6%
Total Revenues	Rs m	8,825	11,574	31.1%
Gross profit	Rs m	1,089	2,095	92.4%
Depreciation	Rs m	99	212	114.5%
Interest	Rs m	78	126	61.4%
Profit before tax	Rs m	1,302	2,305	77.1%
Tax	Rs m	386	487	26.1%
Profit after tax	Rs m	916	1,818	98.5%
Gross profit margin	%	12.9	19.0
Effective tax rate	%	29.7	21.1
Net profit margin	%	10.9	16.5

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SYMPHONY Balance Sheet Analysis

• The company's current liabilities during FY20 stood at Rs 4 billion as compared to Rs 3 billion in FY19, thereby witnessing an increase of 17.9%.
• Long-term debt down at Rs 715 million as compared to Rs 1 billion during FY19, a fall of 42.1%.
• Current assets rose 4% and stood at Rs 7 billion, while fixed assets rose 0% and stood at Rs 4 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 11 billion as against Rs 11 billion during FY19, thereby witnessing a growth of 2%.

SYMPHONY Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	6,661	6,392	-4.0
Current Liabilities	Rs m	3,042	3,586	17.9
Long-term Debt	Rs m	1,236	715	-42.1
Total Liabilities	Rs m	10,909	11,177	2.5
Current assets	Rs m	6,535	6,795	4.0
Fixed Assets	Rs m	4,374	4,382	0.2
Total Assets	Rs m	10,909	11,177	2.5

SYMPHONY Cash Flow Statement Analysis

• SYMPHONY's cash flow from operating activities (CFO) during FY20 stood at Rs 2 billion, an improvement of 12.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs 781 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs -56 million from the Rs 73 million net cash flows seen during FY19.

SYMPHONY Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-19	Mar-20
Cash Flow from Operating Activities	Rs m	1,396	1,569	12.4%
Cash Flow from Investing Activities	Rs m	-2,500	781	-
Cash Flow from Financing Activities	Rs m	1,178	-2,406	-
Net Cash Flow	Rs m	73	-56	-

Current Valuations for SYMPHONY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.0, an improvement from the EPS of Rs 13.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 791.1, stands at 30.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.7 times, while the price to sales ratio stands at 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 39.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Sales per share (Unadj.)	Rs	120.6	157.6
TTM Earnings per share	Rs	13.1	26.0
Diluted earnings per share	Rs	13.1	26.0
Price to Cash Flow	x	95.5	39.0
TTM P/E ratio	x	106.4	30.4
Price / Book Value ratio	x	14.5	12.4
Market Cap	Rs m	96,432	79,226
Dividends per share (Unadj.)	Rs	4.5	23.0

Ratio Analysis for SYMPHONY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY20, from 2.1x during FY19. 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 19.3x during FY20, from 17.7x during FY19. 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 28.4% during FY20, from 13.7% during FY20. 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 34.2% during FY20, from 17.5% during FY19. 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 17.4% during FY20, from 9.1% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Current ratio	x	2.1	1.9
Debtors’ Days	Days	5	4
Interest coverage	x	17.7	19.3
Debt to equity ratio	x	0.2	0.1
Return on assets	%	9.1	17.4
Return on equity	%	13.7	28.4
Return on capital employed	%	17.5	34.2

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

SYMPHONY Share Price Performance

Over the last one year, SYMPHONY share price has moved down from Rs 1,384.0 to Rs 791.1, registering a loss of Rs 592.9 or around 42.8%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 19,363.0 (up 1.6%). Over the last one year it has moved down from 23,856.7 to 19,363.0, a loss of 4,494 points (down 18.8%).

Overall, the S&P BSE SENSEX is down 24.2% over the year.

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

Read: Latest Annual Report Analysis of SYMPHONY