GATI LTD 2017-18 Annual Report Analysis

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GATI LTD 2017-18 Annual Report Analysis
Wed, 9 Jan

GATI LTD has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

GATI LTD Income Statement Analysis

  • Operating income during the year rose 2.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 19.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.4% in FY18 as against 5.7% in FY17.
  • Depreciation charges increased by 0.7% and finance costs decreased by 6.0% YoY, respectively.
  • Other income grew by 650.0% YoY.
  • Net profit for the year grew by 128.1% YoY.
  • Net profit margins during the year grew from 1.0% in FY17 to 2.2% in FY18.

GATI LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 16,910 17,358 2.6%
Other income Rs m 104 779 650.0%
Total Revenues Rs m 17,014 18,136 6.6%
Gross profit Rs m 959 771 -19.6%
Depreciation Rs m 298 300 0.7%
Interest Rs m 500 470 -6.0%
Profit before tax Rs m 265 780 193.9%
Tax Rs m 94 153 62.8%
Profit after tax Rs m 171 391 128.1%
Gross profit margin % 5.7 4.4
Effective tax rate % 35.4 19.6
Net profit margin % 1.0 2.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GATI LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 4 billion as compared to Rs 5 billion in FY17, thereby witnessing an decrease of -24.6%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY17, a growth of 19.1%.
  • Current assets rose 4% and stood at Rs 4 billion, while fixed assets fell 0% and stood at Rs 6 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 15 billion as against Rs 15 billion during FY17, thereby witnessing a fall of 0%.

GATI LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 6,389 7,285 14.0
 
Current Liabilities Rs m 5,110 3,851 -24.6
Long-term Debt Rs m 1,814 2,160 19.1
Total Liabilities Rs m 14,569 14,564 0.0
 
Current assets Rs m 3,568 3,704 3.8
Fixed Assets Rs m 5,673 5,665 -0.1
Total Assets Rs m 14,569 14,564 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GATI LTD Cash Flow Statement Analysis

  • GATI LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion, an improvement of 87.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -153 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -140 million from the Rs 180 million net cash flows seen during FY17.

GATI LTD Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 669 1,251 87.1%
Cash Flow from Investing Activities Rs m -163 -153 -
Cash Flow from Financing Activities Rs m -326 -1,238 -
Net Cash Flow Rs m 180 -140 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for GATI LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.6, an improvement from the EPS of Rs 1.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 84.2, stands at 89.3 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 10.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 191.8 160.2
TTM Earnings per share Rs 1.9 3.6
Diluted earnings per share Rs 2.0 4.5
Price to Cash Flow x 15.8 10.7
TTM P/E ratio x 90.0 89.3
Price / Book Value ratio x 2.0 1.8
Market Cap Rs m 7,425 7,366
Dividends per share (Unadj.) Rs 0.8 0.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for GATI LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY18, from 0.7x during FY17. 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 2.7x during FY18, from 1.5x during FY17. 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 improved and stood at 5.4% during FY18, from 2.7% during FY18. 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 10.7% during FY18, from 9.3% during FY17. 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 improved and stood at 5.9% during FY18, from 4.6% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.7 1.0
Debtors’ Days Days 46 51
Interest coverage x 1.5 2.7
Debt to equity ratio x 0.3 0.3
Return on assets % 4.6 5.9
Return on equity % 2.7 5.4
Return on capital employed % 9.3 10.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

GATI LTD Share Price Performance

Over the last one year, GATI LTD share price has moved up from Rs 138.2 to Rs 84.2, registering a loss of Rs 54.0 or around 39.1%.

Overall, the S&P BSE SENSEX is up 5.4% over the year.

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

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