SUMEET INDUSTRIES 2021-22 Annual Report Analysis

Wed, 7 Sep

SUMEET INDUSTRIES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

SUMEET INDUSTRIES Income Statement Analysis

• Operating income during the year rose 55.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.8% in FY22 as against 4.2% in FY21.
• Depreciation charges decreased by 12.3% and finance costs increased by 737.6% YoY, respectively.
• Other income grew by 621.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.2% in FY21 to 0.3% in FY22.

SUMEET INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	5,739	8,935	55.7%
Other income	Rs m	29	209	621.0%
Total Revenues	Rs m	5,768	9,144	58.5%
Gross profit	Rs m	240	342	42.8%
Depreciation	Rs m	358	314	-12.3%
Interest	Rs m	32	265	737.6%
Profit before tax	Rs m	-121	-28	NA
Tax	Rs m	-50	-57	NA
Profit after tax	Rs m	-71	29	NA
Gross profit margin	%	4.2	3.8
Effective tax rate	%	41.2	204.3
Net profit margin	%	-1.2	0.3

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SUMEET INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 6 billion as compared to Rs 6 billion in FY21, thereby witnessing an decrease of -6.5%.
• Long-term debt stood at Rs 465 million as compared to Rs 319 million during FY21, a growth of 45.4%.
• Current assets rose 1% and stood at Rs 4 billion, while fixed assets fell 12% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 6 billion as against Rs 6 billion during FY21, thereby witnessing a fall of 5%.

SUMEET INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-544	-528	NA
Current Liabilities	Rs m	6,019	5,627	-6.5
Long-term Debt	Rs m	319	465	45.4
Total Liabilities	Rs m	6,251	5,967	-4.5
Current assets	Rs m	3,569	3,612	1.2
Fixed Assets	Rs m	2,682	2,356	-12.2
Total Assets	Rs m	6,251	5,967	-4.5

SUMEET INDUSTRIES Cash Flow Statement Analysis

• SUMEET INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 605 million, an improvement of 156.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 5 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -616 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -5 million from the Rs 3 million net cash flows seen during FY21.

SUMEET INDUSTRIES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	236	605	156.4%
Cash Flow from Investing Activities	Rs m	11	5	-52.2%
Cash Flow from Financing Activities	Rs m	-244	-616	-
Net Cash Flow	Rs m	3	-5	-

Current Valuations for SUMEET INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an improvement from the EPS of Rs -0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6.0, stands at -24.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -1.2 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 2.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	55.4	86.2
TTM Earnings per share	Rs	-0.7	0.3
Diluted earnings per share	Rs	-0.7	0.3
Price to Cash Flow	x	1.8	2.8
TTM P/E ratio	x	-7.2	-24.7
Price / Book Value ratio	x	-0.6	-1.8
Market Cap	Rs m	322	966
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SUMEET INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY22, from 0.6x during FY21. 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 0.9x during FY22, from -2.8x during FY21. 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 -5.5% during FY22, from 13.1% during FY22. 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 -373.4% during FY22, from 39.8% during FY21. 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 4.9% during FY22, from -0.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.6	0.6
Debtors’ Days	Days	662	476
Interest coverage	x	-2.8	0.9
Debt to equity ratio	x	-0.6	-0.9
Return on assets	%	-0.6	4.9
Return on equity	%	13.1	-5.5
Return on capital employed	%	39.8	-373.4

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

SUMEET INDUSTRIES Share Price Performance

Over the last one year, SUMEET INDUSTRIES share price has moved down from Rs 7.2 to Rs 6.0, registering a loss of Rs 1.3 or around 17.7%.

Overall, the S&P BSE SENSEX is up 1.3% over the year.

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