SIYARAM SILK 2020-21 Annual Report Analysis

Wed, 31 Mar

SIYARAM SILK 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.

SIYARAM SILK Income Statement Analysis

• Operating income during the year fell 35.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 67.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.9% in FY21 as against 9.9% in FY20.
• Depreciation charges decreased by 16.2% and finance costs decreased by 30.4% YoY, respectively.
• Other income grew by 20.8% YoY.
• Net profit for the year declined by 94.8% YoY.
• Net profit margins during the year declined from 4.1% in FY20 to 0.3% in FY21.

SIYARAM SILK Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	16,993	10,892	-35.9%
Other income	Rs m	338	408	20.8%
Total Revenues	Rs m	17,331	11,301	-34.8%
Gross profit	Rs m	1,674	538	-67.9%
Depreciation	Rs m	730	612	-16.2%
Interest	Rs m	430	300	-30.4%
Profit before tax	Rs m	852	35	-95.9%
Tax	Rs m	159	-1	-100.7%
Profit after tax	Rs m	692	36	-94.8%
Gross profit margin	%	9.9	4.9
Effective tax rate	%	18.7	-3.3
Net profit margin	%	4.1	0.3

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SIYARAM SILK Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 3 billion as compared to Rs 5 billion in FY20, thereby witnessing an decrease of -43.8%.
• Long-term debt down at Rs 593 million as compared to Rs 1 billion during FY20, a fall of 41.1%.
• Current assets fell 26% and stood at Rs 7 billion, while fixed assets fell 10% and stood at Rs 5 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 12 billion as against Rs 15 billion during FY20, thereby witnessing a fall of 19%.

SIYARAM SILK Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,621	7,670	0.6
Current Liabilities	Rs m	5,216	2,932	-43.8
Long-term Debt	Rs m	1,006	593	-41.1
Total Liabilities	Rs m	15,032	12,105	-19.5
Current assets	Rs m	9,003	6,701	-25.6
Fixed Assets	Rs m	6,029	5,404	-10.4
Total Assets	Rs m	15,032	12,105	-19.5

SIYARAM SILK Cash Flow Statement Analysis

• SIYARAM SILK's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 64.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -223 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 10 million from the Rs -36 million net cash flows seen during FY20.

SIYARAM SILK 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	2,010	3,301	64.3%
Cash Flow from Investing Activities	Rs m	-278	-223	-
Cash Flow from Financing Activities	Rs m	-1,767	-3,068	-
Net Cash Flow	Rs m	-36	10	-

Current Valuations for SIYARAM SILK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.8, an decline from the EPS of Rs 14.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 186.2, stands at 243.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.7 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	362.6	232.4
TTM Earnings per share	Rs	14.8	0.8
Diluted earnings per share	Rs	14.8	0.8
Price to Cash Flow	x	4.6	11.7
TTM P/E ratio	x	9.5	243.8
Price / Book Value ratio	x	1.8	1.0
Market Cap	Rs m	13,733	7,586
Dividends per share (Unadj.)	Rs	8.6	4.6

Ratio Analysis for SIYARAM SILK

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY21, from 1.7x 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 1.1x during FY21, from 3.0x 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 0.5% during FY21, from 9.1% 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 4.0% during FY21, from 14.9% 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 2.8% during FY21, from 7.5% 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	1.7	2.3
Debtors’ Days	Days	731	872
Interest coverage	x	3.0	1.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.5	2.8
Return on equity	%	9.1	0.5
Return on capital employed	%	14.9	4.0

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

SIYARAM SILK Share Price Performance

Over the last one year, SIYARAM SILK share price has moved up from Rs 140.0 to Rs 186.2, registering a gain of Rs 46.2 or around 33.0%.

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

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

Read: Latest Annual Report Analysis of SIYARAM SILK