SOMA TEXTILES 2021-22 Annual Report Analysis

Tue, 20 Sep

SOMA TEXTILES 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.

SOMA TEXTILES Income Statement Analysis

• Operating income during the year rose 13.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 17.8% in FY22 as against 67.5% in FY21.
• Depreciation charges decreased by 31.9% and finance costs increased by 3.6% YoY, respectively.
• Other income grew by 90.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 167.5% in FY21 to 112.5% in FY22.

SOMA TEXTILES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	128	146	13.5%
Other income	Rs m	13	25	90.4%
Total Revenues	Rs m	142	171	20.7%
Gross profit	Rs m	-87	-26	NA
Depreciation	Rs m	13	9	-31.9%
Interest	Rs m	139	144	3.6%
Profit before tax	Rs m	-225	-153	NA
Tax	Rs m	-10	10	NA
Profit after tax	Rs m	-215	-164	NA
Gross profit margin	%	-67.5	-17.8
Effective tax rate	%	4.6	-6.6
Net profit margin	%	-167.5	-112.5

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SOMA TEXTILES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 22.5%.
• Long-term debt down at Rs 966 million as compared to Rs 1 billion during FY21, a fall of 10.3%.
• Current assets rose 16% and stood at Rs 501 million, while fixed assets fell 9% and stood at Rs 873 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 1 billion during FY21, thereby witnessing a fall of 1%.

SOMA TEXTILES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-693	-857	NA
Current Liabilities	Rs m	1,147	1,404	22.5
Long-term Debt	Rs m	1,077	966	-10.3
Total Liabilities	Rs m	1,388	1,374	-1.0
Current assets	Rs m	430	501	16.4
Fixed Assets	Rs m	958	873	-8.9
Total Assets	Rs m	1,388	1,374	-1.0

SOMA TEXTILES Cash Flow Statement Analysis

• SOMA TEXTILES's cash flow from operating activities (CFO) during FY22 stood at Rs 331 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 96 million, an improvement of 57.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -29 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 398 million from the Rs -22 million net cash flows seen during FY21.

SOMA TEXTILES 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	-61	331	-
Cash Flow from Investing Activities	Rs m	61	96	57.0%
Cash Flow from Financing Activities	Rs m	-23	-29	-
Net Cash Flow	Rs m	-22	398	-

Current Valuations for SOMA TEXTILES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.0, an improvement from the EPS of Rs -6.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7.7, stands at -3.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.3 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at -2.0 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	3.9	4.4
TTM Earnings per share	Rs	-6.5	-5.0
Diluted earnings per share	Rs	-6.5	-5.0
Price to Cash Flow	x	-0.9	-2.0
TTM P/E ratio	x	-0.9	-3.5
Price / Book Value ratio	x	-0.3	-0.4
Market Cap	Rs m	197	311
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SOMA TEXTILES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY22, from 0.4x 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 -0.1x during FY22, from -0.6x 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 19.1% during FY22, from 31.0% 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 improved and stood at -8.7% during FY22, from -22.5% 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 -1.4% during FY22, from -5.5% 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	0.4	0.4
Debtors’ Days	Days	97	19
Interest coverage	x	-0.6	-0.1
Debt to equity ratio	x	-1.6	-1.1
Return on assets	%	-5.5	-1.4
Return on equity	%	31.0	19.1
Return on capital employed	%	-22.5	-8.7

To see how SOMA TEXTILES has performed over the last 5 years, please visit here.

SOMA TEXTILES Share Price Performance

Over the last one year, SOMA TEXTILES share price has moved down from Rs 8.3 to Rs 7.7, registering a loss of Rs 0.6 or around 7.0%.

Overall, the S&P BSE SENSEX is up 0.9% over the year.

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