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Sindhu Trade Links reports 250% Net Income growth in 2020 while 58.9% Revenue decline

03-09-2020 • About Sindhu Trade Links ($SINDHUTRAD) • By InTwits

Sindhu Trade Links reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
  • The company has potentially unprofitable business model: ROIC is 6.2%
  • It operates with high leverage: Net Debt/EBITDA is 2.0x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability


The company's Revenue dropped on 58.9%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 10.9 pp from 4.6% to 15.5% in FY2020.

Net Income margin increased on 5.9 pp from 0.78% to 6.6% in FY2020. During the last 5 years Net Income margin bottomed in FY2019 at 0.78%.

Return on investment


The company operates at low ROIC (6.2%) and ROE (8.1%). ROIC increased on 4.3 pp from 1.9% to 6.2% in FY2020. ROE increased on 6.0 pp from 2.1% to 8.1% in FY2020.

Leverage (Debt)


Company's Net Debt / EBITDA is 2.0x and Debt / EBITDA is 2.2x. Net Debt / EBITDA dropped on 7.7x from 9.7x to 2.0x in FY2020. Debt dropped on 69.3% while cash jumped on 15.1%.

Sindhu Trade Links has short term refinancing risk: cash is only 18.5% of short term debt.

Financial and operational results


Sindhu Trade Links ($SINDHUTRAD) key annual financial indicators

mln. INR201620172018201920202020/2019
P&L
Revenue9,63412,59620,33520,7298,514-58.9%
EBITDA1,7091,8499591,32137.7%
Net Income856453360162565250.1%
Balance Sheet
Cash66822722726115.1%
Short Term Debt2,9263,4102,0171,412-30.0%
Long Term Debt9,0137,4857,4851,504-79.9%
Cash flow
Capex6441,013
Ratios
Revenue growth45.6%30.7%61.4%1.9%-58.9%
EBITDA growth8.1%-48.1%37.7%

EBITDA Margin13.6%9.1%4.6%15.5%10.9%
Net Income Margin8.9%3.6%1.8%0.8%6.6%5.9%
CAPEX, % of revenue5.1%5.0%

ROIC6.3%1.9%6.2%4.3%
ROE6.4%2.1%8.1%6.0%
Net Debt/EBITDA6.6x5.8x9.7x2.0x-7.7x

Sindhu Trade Links ($SINDHUTRAD) key quoterly financial indicators

mln. INRFY20Q1FY20Q2FY20Q3FY20Q4 YoY change
P&L
Revenue3,4942,6882,5072,358 ----
EBITDA-121413134411 ----
Net Income-250-164-320252 ----
Balance Sheet
Ratios
EBITDA Margin -3.5% 15.4% 5.3% 17.4% ----
Net Income Margin -7.2% -6.1% -12.8% 10.7% ----

Peers in Misc.Commercial Services


Below you can find Sindhu Trade Links benchmarking vs. other companies in Misc.Commercial Services industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.