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GATI 2020-21 Annual Report Analysis

Wed, 31 Mar

GATI 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.

GATI Income Statement Analysis

• Operating income during the year fell 23.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 598.9% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 13.7% in FY21 as against 2.1% in FY20.
• Depreciation charges decreased by 8.2% and finance costs decreased by 17.6% YoY, respectively.
• Other income declined by 6.2% YoY.
• Net profit for the year grew by 191.8% YoY.
• Net profit margins during the year declined from 4.9% in FY20 to 18.7% in FY21.

GATI Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	17,117	13,142	-23.2%
Other income	Rs m	142	133	-6.2%
Total Revenues	Rs m	17,259	13,276	-23.1%
Gross profit	Rs m	362	-1,804	-598.9%
Depreciation	Rs m	437	401	-8.2%
Interest	Rs m	551	454	-17.6%
Profit before tax	Rs m	-484	-2,526	421.5%
Tax	Rs m	358	-66	-118.5%
Profit after tax	Rs m	-843	-2,459	191.8%
Gross profit margin	%	2.1	-13.7
Effective tax rate	%	-74.0	2.6
Net profit margin	%	-4.9	-18.7

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GATI Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 5 billion as compared to Rs 6 billion in FY20, thereby witnessing an decrease of -7.5%.
• Long-term debt down at Rs 262 million as compared to Rs 971 million during FY20, a fall of 73.0%.
• Current assets rose 6% and stood at Rs 5 billion, while fixed assets fell 33% and stood at Rs 8 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 13 billion as against Rs 17 billion during FY20, thereby witnessing a fall of 23%.

GATI Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,427	5,251	-29.3
Current Liabilities	Rs m	5,724	5,295	-7.5
Long-term Debt	Rs m	971	262	-73.0
Total Liabilities	Rs m	16,758	12,935	-22.8
Current assets	Rs m	4,447	4,733	6.4
Fixed Assets	Rs m	12,310	8,203	-33.4
Total Assets	Rs m	16,758	12,935	-22.8

GATI Cash Flow Statement Analysis

• GATI's cash flow from operating activities (CFO) during FY21 stood at Rs 489 million, an improvement of 72.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 88 million from the Rs 163 million net cash flows seen during FY20.

GATI 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	283	489	72.8%
Cash Flow from Investing Activities	Rs m	-832	1,348	-
Cash Flow from Financing Activities	Rs m	712	-1,734	-
Net Cash Flow	Rs m	163	88	-46.0%

Current Valuations for GATI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -20.2, an decline from the EPS of Rs -6.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 102.7, stands at -5.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at -4.5 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	140.4	107.8
TTM Earnings per share	Rs	-6.9	-20.2
Diluted earnings per share	Rs	-6.9	-20.0
Price to Cash Flow	x	-14.8	-4.5
TTM P/E ratio	x	-7.1	-5.4
Price / Book Value ratio	x	1.0	1.8
Market Cap	Rs m	7,725	9,201
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GATI

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY21, from 0.8x 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 -4.6x during FY21, from 0.1x 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 declined and down at -46.8% during FY21, from -11.3% 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 -37.6% during FY21, from 0.8% 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 -15.5% during FY21, from -1.7% 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	0.8	0.9
Debtors’ Days	Days	438	543
Interest coverage	x	0.1	-4.6
Debt to equity ratio	x	0.1	0.0
Return on assets	%	-1.7	-15.5
Return on equity	%	-11.3	-46.8
Return on capital employed	%	0.8	-37.6

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

GATI Share Price Performance

Over the last one year, GATI share price has moved up from Rs 49.0 to Rs 102.7, registering a gain of Rs 53.7 or around 109.7%.

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

(To know more, check out historical annual results for GATI and quarterly results for GATI)

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