GE T&D INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

GE T&D 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 T&D INDIA Income Statement Analysis

• Operating income during the year rose 9.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 169.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.0% in FY21 as against 7.9% in FY20.
• Depreciation charges decreased by 16.1% and finance costs decreased by 2.9% YoY, respectively.
• Other income grew by 10.5% YoY.
• Net profit for the year declined by 119.9% YoY.
• Net profit margins during the year grew from 9.6% in FY20 to 1.7% in FY21.

GE T&D INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	31,587	34,524	9.3%
Other income	Rs m	595	658	10.5%
Total Revenues	Rs m	32,182	35,181	9.3%
Gross profit	Rs m	-2,498	1,738	-169.6%
Depreciation	Rs m	784	657	-16.1%
Interest	Rs m	870	845	-2.9%
Profit before tax	Rs m	-3,557	893	-125.1%
Tax	Rs m	-531	290	-154.7%
Profit after tax	Rs m	-3,026	603	-119.9%
Gross profit margin	%	-7.9	5.0
Effective tax rate	%	14.9	32.5
Net profit margin	%	-9.6	1.7

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GE T&D INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 28 billion as compared to Rs 28 billion in FY20, thereby witnessing an decrease of -2.4%.
• Current assets fell 1% and stood at Rs 30 billion, while fixed assets fell 1% and stood at Rs 9 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 40 billion as against Rs 40 billion during FY20, thereby witnessing a fall of 1%.

GE T&D INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	10,515	11,227	6.8
Current Liabilities	Rs m	28,262	27,587	-2.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	40,034	39,776	-0.6
Current assets	Rs m	30,586	30,410	-0.6
Fixed Assets	Rs m	9,448	9,366	-0.9
Total Assets	Rs m	40,034	39,776	-0.6

GE T&D INDIA Cash Flow Statement Analysis

• GE T&D INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 123 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -9 million from the Rs -1 million net cash flows seen during FY20.

GE T&D 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	-2,596	3,106	-
Cash Flow from Investing Activities	Rs m	-306	123	-
Cash Flow from Financing Activities	Rs m	2,899	-3,239	-
Net Cash Flow	Rs m	-1	-9	-

Current Valuations for GE T&D INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.4, an improvement from the EPS of Rs -11.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 116.6, stands at 49.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 21.0 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	123.4	134.8
TTM Earnings per share	Rs	-11.8	2.4
Diluted earnings per share	Rs	-11.8	2.4
Price to Cash Flow	x	-8.3	21.0
TTM P/E ratio	x	-6.1	49.5
Price / Book Value ratio	x	4.3	2.4
Market Cap	Rs m	45,442	26,437
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GE T&D INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY21, from 1.1x 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 2.1x during FY21, from -3.1x 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 improved and stood at 5.4% during FY21, from -28.8% 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 improved and stood at 15.5% during FY21, from -25.6% 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 improved and stood at 3.6% during FY21, from -5.4% 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	1.1	1.1
Debtors’ Days	Days	219	201
Interest coverage	x	-3.1	2.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-5.4	3.6
Return on equity	%	-28.8	5.4
Return on capital employed	%	-25.6	15.5

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

GE T&D INDIA Share Price Performance

Over the last one year, GE T&D INDIA share price has moved up from Rs 72.6 to Rs 116.6, registering a gain of Rs 44.0 or around 60.6%.

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 T&D INDIA and quarterly results for GE T&D INDIA)

Read: Latest Annual Report Analysis of GE T&D INDIA