SRIKALAHASTHI PIPES 2020-21 Annual Report Analysis

Wed, 31 Mar

SRIKALAHASTHI PIPES 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.

SRIKALAHASTHI PIPES Income Statement Analysis

• Operating income during the year fell 9.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 30.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.0% in FY21 as against 15.6% in FY20.
• Depreciation charges increased by 12.3% and finance costs decreased by 1.4% YoY, respectively.
• Other income declined by 11.5% YoY.
• Net profit for the year declined by 44.8% YoY.
• Net profit margins during the year declined from 11.3% in FY20 to 6.9% in FY21.

SRIKALAHASTHI PIPES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	16,629	15,026	-9.6%
Other income	Rs m	637	563	-11.5%
Total Revenues	Rs m	17,266	15,589	-9.7%
Gross profit	Rs m	2,602	1,809	-30.5%
Depreciation	Rs m	412	462	12.3%
Interest	Rs m	462	456	-1.4%
Profit before tax	Rs m	2,365	1,454	-38.5%
Tax	Rs m	488	418	-14.5%
Profit after tax	Rs m	1,877	1,037	-44.8%
Gross profit margin	%	15.6	12.0
Effective tax rate	%	20.7	28.7
Net profit margin	%	11.3	6.9

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SRIKALAHASTHI PIPES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 6 billion as compared to Rs 7 billion in FY20, thereby witnessing an decrease of -21.5%.
• Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY20, a growth of 3.7%.
• Current assets fell 14% and stood at Rs 12 billion, while fixed assets rose 15% and stood at Rs 14 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 27 billion as against Rs 27 billion during FY20, thereby witnessing a fall of 1%.

SRIKALAHASTHI PIPES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	14,161	14,870	5.0
Current Liabilities	Rs m	7,385	5,799	-21.5
Long-term Debt	Rs m	1,181	1,225	3.7
Total Liabilities	Rs m	26,773	26,552	-0.8
Current assets	Rs m	14,464	12,395	-14.3
Fixed Assets	Rs m	12,309	14,157	15.0
Total Assets	Rs m	26,773	26,552	-0.8

SRIKALAHASTHI PIPES Cash Flow Statement Analysis

• SRIKALAHASTHI PIPES's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion 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 1 billion from the Rs -2 billion net cash flows seen during FY20.

SRIKALAHASTHI PIPES 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	-1,246	5,489	-
Cash Flow from Investing Activities	Rs m	-1,900	-1,073	-
Cash Flow from Financing Activities	Rs m	654	-3,338	-
Net Cash Flow	Rs m	-2,492	1,078	-

Current Valuations for SRIKALAHASTHI PIPES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.2, an decline from the EPS of Rs 40.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 171.8, stands at 7.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 5.1 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	356.1	321.8
TTM Earnings per share	Rs	40.2	22.2
Diluted earnings per share	Rs	40.2	22.2
Price to Cash Flow	x	2.3	5.1
TTM P/E ratio	x	2.8	7.7
Price / Book Value ratio	x	0.6	0.5
Market Cap	Rs m	8,203	7,705
Dividends per share (Unadj.)	Rs	7.0	6.0

Ratio Analysis for SRIKALAHASTHI PIPES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY21, from 2.0x 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 4.2x during FY21, from 6.1x 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 declined and down at 7.0% during FY21, from 13.3% 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 11.9% during FY21, from 18.4% 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 5.6% during FY21, from 8.7% 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	2.0	2.1
Debtors’ Days	Days	1,189	549
Interest coverage	x	6.1	4.2
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.7	5.6
Return on equity	%	13.3	7.0
Return on capital employed	%	18.4	11.9

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

SRIKALAHASTHI PIPES Share Price Performance

Over the last one year, SRIKALAHASTHI PIPES share price has moved up from Rs 110.9 to Rs 171.8, registering a gain of Rs 60.9 or around 54.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 0.0 to 14,350.6, a gain of 14,351 points (up 0.0%).

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

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