SYMPHONY 2019-20 Annual Report Analysis

Fri, 11 Dec

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 60.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.2% in FY20 as against 15.7% in FY19.
• Depreciation charges increased by 114.5% and finance costs increased by 54.6% 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 10.4% in FY19 to 15.7% 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	1,321	2,116	60.2%
Depreciation	Rs m	99	212	114.5%
Interest	Rs m	69	107	54.6%
Profit before tax	Rs m	1,542	2,345	52.0%
Tax	Rs m	386	487	26.1%
Profit after tax	Rs m	916	1,818	98.5%
Gross profit margin	%	15.7	19.2
Effective tax rate	%	25.0	20.8
Net profit margin	%	10.4	15.7

Last 2 Days: Watch the Replay of Great Indian Wealth Project Special Event

SYMPHONY Balance Sheet Analysis

• The company's current liabilities during FY20 stood at Rs 3 billion as compared to Rs 3 billion in FY19, thereby witnessing an increase of 15.3%.
• Long-term debt down at Rs 715 million as compared to Rs 1 billion during FY19, a fall of 42.1%.
• Current assets rose 2% and stood at Rs 6 billion, while fixed assets rose 32% and stood at Rs 3 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 fall of 1%.

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	2,648	3,052	15.3
Long-term Debt	Rs m	1,236	715	-42.1
Total Liabilities	Rs m	10,706	10,643	-0.6
Current assets	Rs m	6,140	6,261	2.0
Fixed Assets	Rs m	2,432	3,202	31.6
Total Assets	Rs m	10,706	10,643	-0.6

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 912.0, stands at 59.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.4 times, while the price to sales ratio stands at 7.2 times.
• The company's price to cash flow (P/CF) ratio stood at 31.4 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	62.9	31.4
TTM P/E ratio	x	59.1	59.1
Price / Book Value ratio	x	14.5	12.4
Market Cap	Rs m	63,804	63,800
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 2.1x during FY20, from 2.3x 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 deteriorated and stood at 23.0x during FY20, from 23.3x 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 33.9% during FY20, from 17.4% 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 18.1% during FY20, from 9.2% 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	2.3	2.1
Debtors’ Days	Days	45	40
Interest coverage	x	23.3	23.0
Debt to equity ratio	x	0.2	0.1
Return on assets	%	9.2	18.1
Return on equity	%	13.7	28.4
Return on capital employed	%	17.4	33.9

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 1,080.4 to Rs 912.0, registering a loss of Rs 168.4 or around 15.6%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 28,094.0 (up 0.2%). Over the last one year it has moved up from 24,911.0 to 28,094.0, a gain of 3,183 points (up 12.8%).

Overall, the S&P BSE SENSEX is up 14.2% over the year.

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