SORIL INFRA RESOURCES 2020-21 Annual Report Analysis

Wed, 31 Mar

SORIL INFRA RESOURCES 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.

SORIL INFRA RESOURCES Income Statement Analysis

• Operating income during the year fell 20.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.0% in FY21 as against 14.4% in FY20.
• Depreciation charges decreased by 8.5% and finance costs decreased by 13.0% YoY, respectively.
• Other income grew by 34.3% YoY.
• Net profit for the year grew by 190.5% YoY.
• Net profit margins during the year grew from 3.1% in FY20 to 11.5% in FY21.

SORIL INFRA RESOURCES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,125	1,681	-20.9%
Other income	Rs m	186	249	34.3%
Total Revenues	Rs m	2,311	1,931	-16.4%
Gross profit	Rs m	305	336	10.1%
Depreciation	Rs m	252	230	-8.5%
Interest	Rs m	135	118	-13.0%
Profit before tax	Rs m	104	237	128.3%
Tax	Rs m	37	44	17.2%
Profit after tax	Rs m	67	194	190.5%
Gross profit margin	%	14.4	20.0
Effective tax rate	%	35.9	18.4
Net profit margin	%	3.1	11.5

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SORIL INFRA RESOURCES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 1.2%.
• Long-term debt stood at Rs 680 million as compared to Rs 259 million during FY20, a growth of 162.5%.
• Current assets rose 99% and stood at Rs 5 billion, while fixed assets fell 41% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 6 billion during FY20, thereby witnessing a growth of 10%.

SORIL INFRA RESOURCES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,332	2,530	8.5
Current Liabilities	Rs m	3,468	3,510	1.2
Long-term Debt	Rs m	259	680	162.5
Total Liabilities	Rs m	6,240	6,886	10.4
Current assets	Rs m	2,271	4,531	99.5
Fixed Assets	Rs m	3,969	2,355	-40.6
Total Assets	Rs m	6,240	6,886	10.4

SORIL INFRA RESOURCES Cash Flow Statement Analysis

• SORIL INFRA RESOURCES's cash flow from operating activities (CFO) during FY21 stood at Rs 1 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 251 million, an improvement of 144% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 144 million from the Rs -9 million net cash flows seen during FY20.

SORIL INFRA RESOURCES 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	-270	1,161	-
Cash Flow from Investing Activities	Rs m	834	-1,268	-
Cash Flow from Financing Activities	Rs m	-573	251	-
Net Cash Flow	Rs m	-9	144	-

Current Valuations for SORIL INFRA RESOURCES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.1, an improvement from the EPS of Rs 2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 138.0, stands at 22.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 9.8 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	67.5	53.4
TTM Earnings per share	Rs	2.1	6.1
Diluted earnings per share	Rs	2.1	6.1
Price to Cash Flow	x	4.2	9.8
TTM P/E ratio	x	20.3	22.5
Price / Book Value ratio	x	2.7	1.6
Market Cap	Rs m	6,412	4,162
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SORIL INFRA RESOURCES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 0.7x 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 improved and stood at 3.0x during FY21, from 1.8x 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 7.6% during FY21, from 2.9% 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 11.1% during FY21, from 9.2% 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 4.5% during FY21, from 3.2% 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	0.7	1.3
Debtors’ Days	Days	12	18
Interest coverage	x	1.8	3.0
Debt to equity ratio	x	0.1	0.3
Return on assets	%	3.2	4.5
Return on equity	%	2.9	7.6
Return on capital employed	%	9.2	11.1

To see how SORIL INFRA RESOURCES has performed over the last 5 years, please visit here.

SORIL INFRA RESOURCES Share Price Performance

Over the last one year, SORIL INFRA RESOURCES share price has moved up from Rs 42.9 to Rs 138.0, registering a gain of Rs 95.1 or around 221.6%.

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

(To know more, check out historical annual results for SORIL INFRA RESOURCES and quarterly results for SORIL INFRA RESOURCES)