ADANI TOTAL GAS 2020-21 Annual Report Analysis

Wed, 31 Mar

ADANI TOTAL GAS 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.

ADANI TOTAL GAS Income Statement Analysis

• Operating income during the year fell 8.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 42.9% in FY21 as against 33.8% in FY20.
• Depreciation charges increased by 23.3% and finance costs decreased by 1.4% YoY, respectively.
• Other income grew by 0.0% YoY.
• Net profit for the year grew by 8.2% YoY.
• Net profit margins during the year grew from 24.8% in FY20 to 29.4% in FY21.

ADANI TOTAL GAS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	17,582	16,067	-8.6%
Other income	Rs m	448	448	0.0%
Total Revenues	Rs m	18,030	16,515	-8.4%
Gross profit	Rs m	5,944	6,894	16.0%
Depreciation	Rs m	507	625	23.3%
Interest	Rs m	411	405	-1.4%
Profit before tax	Rs m	5,474	6,312	15.3%
Tax	Rs m	1,112	1,593	43.3%
Profit after tax	Rs m	4,362	4,720	8.2%
Gross profit margin	%	33.8	42.9
Effective tax rate	%	20.3	25.2
Net profit margin	%	24.8	29.4

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ADANI TOTAL GAS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 8 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 36.7%.
• Long-term debt stood at Rs 3 billion as compared to Rs 3 billion during FY20, a growth of 3.5%.
• Current assets fell 60% and stood at Rs 2 billion, while fixed assets rose 55% and stood at Rs 30 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 32 billion as against Rs 25 billion during FY20, thereby witnessing a growth of 29%.

ADANI TOTAL GAS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	14,709	19,338	31.5
Current Liabilities	Rs m	5,911	8,082	36.7
Long-term Debt	Rs m	2,976	3,079	3.5
Total Liabilities	Rs m	24,763	32,036	29.4
Current assets	Rs m	5,581	2,233	-60.0
Fixed Assets	Rs m	19,183	29,803	55.4
Total Assets	Rs m	24,763	32,036	29.4

ADANI TOTAL GAS Cash Flow Statement Analysis

• ADANI TOTAL GAS's cash flow from operating activities (CFO) during FY21 stood at Rs 7 billion, an improvement of 32.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -8 billion, an improvement of 67.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 386 million, an improvement of 138% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -784 million from the Rs -706 million net cash flows seen during FY20.

ADANI TOTAL GAS 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	4,924	6,535	32.7%
Cash Flow from Investing Activities	Rs m	-4,610	-7,705	-
Cash Flow from Financing Activities	Rs m	-1,020	386	-
Net Cash Flow	Rs m	-706	-784	-

Current Valuations for ADANI TOTAL GAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.3, an improvement from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 961.3, stands at 224.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 54.7 times, while the price to sales ratio stands at 65.8 times.
• The company's price to cash flow (P/CF) ratio stood at 108.7 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	16.0	14.6
TTM Earnings per share	Rs	4.0	4.3
Diluted earnings per share	Rs	4.0	4.3
Price to Cash Flow	x	19.5	108.7
TTM P/E ratio	x	21.8	224.0
Price / Book Value ratio	x	10.1	30.1
Market Cap	Rs m	149,162	581,167
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for ADANI TOTAL GAS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY21, from 0.9x 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 improved and stood at 16.6x during FY21, from 14.3x 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 24.4% during FY21, from 29.7% 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 30.0% during FY21, from 33.3% 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 16.0% during FY21, from 19.3% 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	0.9	0.3
Debtors’ Days	Days	1	2
Interest coverage	x	14.3	16.6
Debt to equity ratio	x	0.2	0.2
Return on assets	%	19.3	16.0
Return on equity	%	29.7	24.4
Return on capital employed	%	33.3	30.0

To see how ADANI TOTAL GAS has performed over the last 5 years, please visit here.

ADANI TOTAL GAS Share Price Performance

Over the last one year, ADANI TOTAL GAS share price has moved up from Rs 86.4 to Rs 961.3, registering a gain of Rs 874.9 or around 1012.6%.

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

(To know more, check out historical annual results for ADANI TOTAL GAS and quarterly results for ADANI TOTAL GAS)

Read: Latest Annual Report Analysis of ADANI TOTAL GAS