GATI 2020-21 Annual Report Analysis

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GATI 2020-21 Annual Report Analysis
Mon, 1 Nov

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 18.5% 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 -18.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 141.1, stands at -9.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at -8.4 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 -42.4 -8.4
TTM P/E ratio x -9.8 -9.9
Price / Book Value ratio x 1.0 1.8
Market Cap Rs m 17,200 17,345
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 65.6 to Rs 141.1, registering a gain of Rs 75.5 or around 115.0%.

Overall, the S&P BSE SENSEX is up 50.8% over the year.

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

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