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 indicatorsmln. INR | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
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P&L
|
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Revenue | 9,634 | 12,596 | 20,335 | 20,729 | 8,514 | -58.9% |
EBITDA | | 1,709 | 1,849 | 959 | 1,321 | 37.7% |
Net Income | 856 | 453 | 360 | 162 | 565 | 250.1% |
Balance Sheet
|
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Cash | | 668 | 227 | 227 | 261 | 15.1% |
Short Term Debt | | 2,926 | 3,410 | 2,017 | 1,412 | -30.0% |
Long Term Debt | | 9,013 | 7,485 | 7,485 | 1,504 | -79.9% |
Cash flow
|
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Capex | | 644 | 1,013 | | | |
Ratios
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Revenue growth | 45.6% | 30.7% | 61.4% | 1.9% | -58.9% | |
EBITDA growth | | | 8.1% | -48.1% | 37.7% | |
|
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EBITDA Margin | | 13.6% | 9.1% | 4.6% | 15.5% | 10.9% |
Net Income Margin | 8.9% | 3.6% | 1.8% | 0.8% | 6.6% | 5.9% |
CAPEX, % of revenue | | 5.1% | 5.0% | | | |
|
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ROIC | | | 6.3% | 1.9% | 6.2% | 4.3% |
ROE | | | 6.4% | 2.1% | 8.1% | 6.0% |
Net Debt/EBITDA | | 6.6x | 5.8x | 9.7x | 2.0x | -7.7x |
Sindhu Trade Links ($SINDHUTRAD) key quoterly financial indicators
mln. INR | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
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P&L
|
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Revenue | 3,494 | 2,688 | 2,507 | 2,358 | | - | - | - | - |
EBITDA | -121 | 413 | 134 | 411 | | - | - | - | - |
Net Income | -250 | -164 | -320 | 252 | | - | - | - | - |
Balance Sheet
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Ratios
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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.