GE POWER INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

GE POWER INDIA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

GE POWER INDIA Income Statement Analysis

• Operating income during the year rose 36.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 30.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.8% in FY21 as against 7.5% in FY20.
• Depreciation charges decreased by 24.7% and finance costs increased by 17.8% YoY, respectively.
• Other income declined by 18.0% YoY.
• Net profit for the year declined by 16.7% YoY.
• Net profit margins during the year declined from 3.5% in FY20 to 2.1% in FY21.

GE POWER INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	24,459	33,430	36.7%
Other income	Rs m	1,249	1,025	-18.0%
Total Revenues	Rs m	25,708	34,455	34.0%
Gross profit	Rs m	1,838	1,280	-30.3%
Depreciation	Rs m	665	501	-24.7%
Interest	Rs m	690	812	17.8%
Profit before tax	Rs m	1,733	992	-42.7%
Tax	Rs m	887	288	-67.6%
Profit after tax	Rs m	846	705	-16.7%
Gross profit margin	%	7.5	3.8
Effective tax rate	%	51.2	29.0
Net profit margin	%	3.5	2.1

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GE POWER INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 28 billion as compared to Rs 22 billion in FY20, thereby witnessing an increase of 24.3%.
• Current assets rose 23% and stood at Rs 34 billion, while fixed assets rose 1% and stood at Rs 12 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 46 billion as against Rs 40 billion during FY20, thereby witnessing a growth of 16%.

GE POWER INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	9,167	9,716	6.0
Current Liabilities	Rs m	22,320	27,754	24.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	39,501	46,018	16.5
Current assets	Rs m	27,881	34,241	22.8
Fixed Assets	Rs m	11,620	11,777	1.3
Total Assets	Rs m	39,501	46,018	16.5

GE POWER INDIA Cash Flow Statement Analysis

• GE POWER INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs -5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 633 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 3 billion, an improvement of 394% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -2 billion from the Rs 3 billion net cash flows seen during FY20.

GE POWER INDIA Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	-5,634	-4,776	-
Cash Flow from Investing Activities	Rs m	9,168	633	-93.1%
Cash Flow from Financing Activities	Rs m	-865	2,544	-
Net Cash Flow	Rs m	2,669	-1,599	-

Current Valuations for GE POWER INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.5, an decline from the EPS of Rs 12.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 286.3, stands at 27.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 20.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	363.8	497.3
TTM Earnings per share	Rs	12.6	10.5
Diluted earnings per share	Rs	12.6	10.5
Price to Cash Flow	x	21.2	20.3
TTM P/E ratio	x	37.9	27.3
Price / Book Value ratio	x	5.0	2.5
Market Cap	Rs m	45,479	24,425
Dividends per share (Unadj.)	Rs	2.0	1.0

Ratio Analysis for GE POWER INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY21, from 1.2x during FY20. 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 deteriorated and stood at 2.2x during FY21, from 3.5x during FY20. 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 7.3% during FY21, from 9.2% during FY21. 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 18.6% during FY21, from 26.4% during FY20. 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 declined and down at 3.3% during FY21, from 3.9% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.2	1.2
Debtors’ Days	Days	198	242
Interest coverage	x	3.5	2.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.9	3.3
Return on equity	%	9.2	7.3
Return on capital employed	%	26.4	18.6

To see how GE POWER INDIA has performed over the last 5 years, please visit here.

GE POWER INDIA Share Price Performance

Over the last one year, GE POWER INDIA share price has moved down from Rs 476.4 to Rs 286.3, registering a loss of Rs 190.1 or around 39.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for GE POWER INDIA and quarterly results for GE POWER INDIA)

Read: Latest Annual Report Analysis of GE POWER INDIA