Sindhu Trade Links reports 250% Net Income growth in 2020 while 58.9% Revenue decline 03-09-2020
• About Sindhu Trade Links ($SINDHUTRAD
) • By InTwits
Sindhu Trade Links reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- The company has potentially unprofitable business model: ROIC is 6.2%
- It operates with high leverage: Net Debt/EBITDA is 2.0x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 58.9%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 10.9 pp from 4.6% to 15.5% in FY2020.
Net Income margin increased on 5.9 pp from 0.78% to 6.6% in FY2020. During the last 5 years Net Income margin bottomed in FY2019 at 0.78%.
Return on investment
The company operates at low ROIC (6.2%) and ROE (8.1%). ROIC increased on 4.3 pp from 1.9% to 6.2% in FY2020. ROE increased on 6.0 pp from 2.1% to 8.1% in FY2020.
Company's Net Debt / EBITDA is 2.0x and Debt / EBITDA is 2.2x. Net Debt / EBITDA dropped on 7.7x from 9.7x to 2.0x in FY2020. Debt dropped on 69.3% while cash jumped on 15.1%.
Sindhu Trade Links has short term refinancing risk: cash is only 18.5% of short term debt.
Financial and operational resultsSindhu Trade Links ($SINDHUTRAD) key annual financial indicators
Sindhu Trade Links ($SINDHUTRAD) key quoterly financial indicators
|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%|
|Net Income Margin||8.9%||3.6%||1.8%||0.8%||6.6%||5.9%|
|CAPEX, % of revenue||5.1%||5.0%|
|mln. INR||FY20Q1||FY20Q2||FY20Q3||FY20Q4|| ||YoY change|
|Net Income||-250||-164||-320||252|| ||-||-||-||-|
|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.