GE T&D INDIA 2021-22 Annual Report Analysis

Tue, 26 Jul

GE T&D INDIA has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

GE T&D INDIA Income Statement Analysis

• Operating income during the year fell 11.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 130.0% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.7% in FY22 as against 5.0% in FY21.
• Depreciation charges decreased by 12.0% and finance costs decreased by 30.7% YoY, respectively.
• Other income grew by 50.7% YoY.
• Net profit for the year declined by 182.3% YoY.
• Net profit margins during the year declined from 1.7% in FY21 to 1.6% in FY22.

GE T&D INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	34,524	30,660	-11.2%
Other income	Rs m	658	991	50.7%
Total Revenues	Rs m	35,181	31,650	-10.0%
Gross profit	Rs m	1,738	-521	-130.0%
Depreciation	Rs m	657	579	-12.0%
Interest	Rs m	845	586	-30.7%
Profit before tax	Rs m	893	-695	-177.8%
Tax	Rs m	290	-199	-168.4%
Profit after tax	Rs m	603	-496	-182.3%
Gross profit margin	%	5.0	-1.7
Effective tax rate	%	32.5	28.6
Net profit margin	%	1.7	-1.6

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GE T&D INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 29 billion as compared to Rs 31 billion in FY21, thereby witnessing an decrease of -6.1%.
• Current assets fell 8% and stood at Rs 31 billion, while fixed assets fell 2% and stood at Rs 15 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 47 billion as against Rs 50 billion during FY21, thereby witnessing a fall of 6%.

GE T&D INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	11,227	10,803	-3.8
Current Liabilities	Rs m	31,409	29,484	-6.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	49,846	46,670	-6.4
Current assets	Rs m	34,232	31,416	-8.2
Fixed Assets	Rs m	15,614	15,254	-2.3
Total Assets	Rs m	49,846	46,670	-6.4

GE T&D INDIA Cash Flow Statement Analysis

• GE T&D INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 82 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 1 billion, an improvement of 840.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion, an improvement of 68% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 219 million from the Rs -9 million net cash flows seen during FY21.

GE T&D INDIA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	3,106	82	-97.4%
Cash Flow from Investing Activities	Rs m	123	1,158	840.7%
Cash Flow from Financing Activities	Rs m	-3,239	-1,025	-
Net Cash Flow	Rs m	-9	219	-

Current Valuations for GE T&D INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.9, an decline from the EPS of Rs 2.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 107.0, stands at -55.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 366.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	134.8	119.7
TTM Earnings per share	Rs	2.4	-1.9
Diluted earnings per share	Rs	2.4	-1.9
Price to Cash Flow	x	23.7	366.4
TTM P/E ratio	x	49.5	-55.2
Price / Book Value ratio	x	2.4	2.8
Market Cap	Rs m	26,437	30,195
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 deteriorated and stood at 1.1x during FY22, from 1.1x during FY21. 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 -0.2x during FY22, from 2.1x during FY21. 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 -4.6% during FY22, from 5.4% during FY22. 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 -1.0% during FY22, from 15.5% during FY21. 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 0.2% during FY22, from 2.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.1	1.1
Debtors’ Days	Days	201	186
Interest coverage	x	2.1	-0.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.9	0.2
Return on equity	%	5.4	-4.6
Return on capital employed	%	15.5	-1.0

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 down from Rs 136.2 to Rs 107.0, registering a loss of Rs 29.2 or around 21.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 28,859.6 (down 1.0%). Over the last one year it has moved up from 23,735.6 to 28,859.6, a gain of 5,124 points (up 21.6%).

Overall, the S&P BSE SENSEX is up 5.2% over the year.

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