GRAPHITE INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

GRAPHITE 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.

GRAPHITE INDIA Income Statement Analysis

• Operating income during the year fell 36.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 159.3% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 10.5% in FY21 as against 2.6% in FY20.
• Depreciation charges increased by 0.9% and finance costs decreased by 65.9% YoY, respectively.
• Other income grew by 81.1% YoY.
• Net profit for the year declined by 142.4% YoY.
• Net profit margins during the year declined from 1.7% in FY20 to 1.1% in FY21.

GRAPHITE INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	30,936	19,576	-36.7%
Other income	Rs m	1,744	3,159	81.1%
Total Revenues	Rs m	32,680	22,736	-30.4%
Gross profit	Rs m	-791	-2,051	159.3%
Depreciation	Rs m	515	519	0.9%
Interest	Rs m	178	61	-65.9%
Profit before tax	Rs m	261	529	102.5%
Tax	Rs m	-258	749	-390.6%
Profit after tax	Rs m	519	-220	-142.4%
Gross profit margin	%	-2.6	-10.5
Effective tax rate	%	-98.7	141.6
Net profit margin	%	1.7	-1.1

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GRAPHITE INDIA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 9 billion as compared to Rs 9 billion in FY20, thereby witnessing an decrease of -5.5%.
• Current assets fell 9% and stood at Rs 39 billion, while fixed assets rose 24% and stood at Rs 17 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 55 billion as against Rs 56 billion during FY20, thereby witnessing a fall of 1%.

GRAPHITE INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	45,543	45,418	-0.3
Current Liabilities	Rs m	9,431	8,908	-5.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	55,781	55,274	-0.9
Current assets	Rs m	42,245	38,524	-8.8
Fixed Assets	Rs m	13,537	16,750	23.7
Total Assets	Rs m	55,781	55,274	-0.9

GRAPHITE INDIA Cash Flow Statement Analysis

• GRAPHITE INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 6 billion, an improvement of 130.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion, an improvement of 76% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -1 billion from the Rs -365 million net cash flows seen during FY20.

GRAPHITE 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	2,531	5,840	130.8%
Cash Flow from Investing Activities	Rs m	5,263	-5,341	-
Cash Flow from Financing Activities	Rs m	-8,385	-1,990	-
Net Cash Flow	Rs m	-365	-1,339	-

Current Valuations for GRAPHITE INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.1, an decline from the EPS of Rs 2.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 511.9, stands at -454.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 5.1 times.
• The company's price to cash flow (P/CF) ratio stood at 219.0 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	158.3	100.2
TTM Earnings per share	Rs	2.7	-1.1
Diluted earnings per share	Rs	2.7	-1.1
Price to Cash Flow	x	24.0	219.0
TTM P/E ratio	x	47.8	-454.6
Price / Book Value ratio	x	1.3	1.4
Market Cap	Rs m	56,937	65,495
Dividends per share (Unadj.)	Rs	2.0	5.0

Ratio Analysis for GRAPHITE INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.3x during FY21, from 4.5x 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 9.7x during FY21, from 2.5x 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 -0.5% during FY21, from 1.1% 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 1.3% during FY21, from 1.0% 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 -0.3% during FY21, from 1.2% 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	4.5	4.3
Debtors’ Days	Days	5	6
Interest coverage	x	2.5	9.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.2	-0.3
Return on equity	%	1.1	-0.5
Return on capital employed	%	1.0	1.3

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

GRAPHITE INDIA Share Price Performance

Over the last one year, GRAPHITE INDIA share price has moved up from Rs 127.1 to Rs 511.9, registering a gain of Rs 384.8 or around 302.8%.

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 GRAPHITE INDIA and quarterly results for GRAPHITE INDIA)

Read: Latest Annual Report Analysis of GRAPHITE INDIA