GATI 2022-23 Annual Report Analysis

Tue, 15 Aug

GATI has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

GATI Income Statement Analysis

• Operating income during the year rose 15.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.5% in FY23 as against 3.1% in FY22.
• Depreciation charges increased by 69.6% and finance costs increased by 7.2% YoY, respectively.
• Other income grew by 111.6% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 0.3% in FY22 to 0.6% in FY23.

GATI Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,899	17,232	15.7%
Other income	Rs m	159	337	111.6%
Total Revenues	Rs m	15,059	17,569	16.7%
Gross profit	Rs m	459	602	31.1%
Depreciation	Rs m	349	592	69.6%
Interest	Rs m	274	294	7.2%
Profit before tax	Rs m	-5	53	NA
Tax	Rs m	39	162	312.5%
Profit after tax	Rs m	-44	-109	NA
Gross profit margin	%	3.1	3.5
Effective tax rate	%	-786.0	305.8
Net profit margin	%	-0.3	-0.6

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GATI Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -2.9%.
• Long-term debt down at Rs 0 million as compared to Rs 85 million during FY22, a fall of 99.9%.
• Current assets rose 34% and stood at Rs 4 billion, while fixed assets rose 1% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 13 billion as against Rs 12 billion during FY22, thereby witnessing a growth of 5%.

GATI Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,418	5,982	10.4
Current Liabilities	Rs m	4,295	4,169	-2.9
Long-term Debt	Rs m	85	0	-99.9
Total Liabilities	Rs m	12,025	12,584	4.6
Current assets	Rs m	3,144	4,212	34.0
Fixed Assets	Rs m	7,555	7,633	1.0
Total Assets	Rs m	12,025	12,584	4.6

GATI Cash Flow Statement Analysis

• GATI's cash flow from operating activities (CFO) during FY23 stood at Rs 582 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -163 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -387 million, an improvement of 17% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 31 million from the Rs -267 million net cash flows seen during FY22.

GATI Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-65	582	-
Cash Flow from Investing Activities	Rs m	269	-163	-
Cash Flow from Financing Activities	Rs m	-469	-387	-
Net Cash Flow	Rs m	-267	31	-

Current Valuations for GATI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.8, an decline from the EPS of Rs -0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 155.1, stands at -99.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 39.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	121.2	132.4
TTM Earnings per share	Rs	-0.4	-0.8
Diluted earnings per share	Rs	-0.3	-0.8
Price to Cash Flow	x	69.9	39.5
TTM P/E ratio	x	-605.8	-99.7
Price / Book Value ratio	x	3.6	3.2
Market Cap	Rs m	19,365	19,058
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 1.0x during FY23, from 0.7x during FY22. 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 1.2x during FY23, from 1.0x during FY22. 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 -1.8% during FY23, from -0.8% during FY23. 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 5.8% during FY23, from 4.9% during FY22. 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 1.5% during FY23, from 1.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.7	1.0
Debtors’ Days	Days	569	565
Interest coverage	x	1.0	1.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.9	1.5
Return on equity	%	-0.8	-1.8
Return on capital employed	%	4.9	5.8

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 down from Rs 157.8 to Rs 155.1, registering a loss of Rs 2.8 or around 1.7%.

Overall, the S&P BSE SENSEX is up 10.2% over the year.

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