GAIL 2020-21 Annual Report Analysis

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GAIL 2020-21 Annual Report Analysis
Tue, 19 Oct

GAIL 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.

GAIL Income Statement Analysis

  • Operating income during the year fell 20.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 18.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.6% in FY21 as against 12.2% in FY20.
  • Depreciation charges increased by 4.5% and finance costs decreased by 42.0% YoY, respectively.
  • Other income declined by 35.5% YoY.
  • Net profit for the year declined by 39.1% YoY.
  • Net profit margins during the year declined from 9.8% in FY20 to 7.6% in FY21.

GAIL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 724,584 573,156 -20.9%
Other income Rs m 17,362 11,202 -35.5%
Total Revenues Rs m 741,946 584,358 -21.2%
Gross profit Rs m 88,353 72,438 -18.0%
Depreciation Rs m 20,802 21,738 4.5%
Interest Rs m 3,089 1,793 -42.0%
Profit before tax Rs m 81,823 60,109 -26.5%
Tax Rs m 9,143 15,826 73.1%
Profit after tax Rs m 72,680 44,282 -39.1%
Gross profit margin % 12.2 12.6
Effective tax rate % 11.2 26.3
Net profit margin % 9.8 7.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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GAIL Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 126 billion as compared to Rs 125 billion in FY20, thereby witnessing an increase of 0.6%.
  • Long-term debt stood at Rs 52 billion as compared to Rs 38 billion during FY20, a growth of 38.8%.
  • Current assets fell 7% and stood at Rs 109 billion, while fixed assets rose 11% and stood at Rs 722 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 830 billion as against Rs 769 billion during FY20, thereby witnessing a growth of 8%.

GAIL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 492,683 531,823 7.9
 
Current Liabilities Rs m 124,762 125,523 0.6
Long-term Debt Rs m 37,734 52,374 38.8
Total Liabilities Rs m 768,842 830,173 8.0
 
Current assets Rs m 116,569 108,672 -6.8
Fixed Assets Rs m 652,274 721,501 10.6
Total Assets Rs m 768,842 830,173 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



GAIL Cash Flow Statement Analysis

  • GAIL's cash flow from operating activities (CFO) during FY21 stood at Rs 90 billion, an improvement of 7.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -47 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -35 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 9 billion from the Rs 3 billion net cash flows seen during FY20.

GAIL 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 83,454 89,934 7.8%
Cash Flow from Investing Activities Rs m -74,446 -46,930 -
Cash Flow from Financing Activities Rs m 2,812 -34,706 -
Net Cash Flow Rs m 3,275 8,825 169.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GAIL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.0, an decline from the EPS of Rs 16.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 158.1, stands at 12.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.8 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 160.7 129.1
TTM Earnings per share Rs 16.1 10.0
Diluted earnings per share Rs 16.1 9.8
Price to Cash Flow x 7.6 10.8
TTM P/E ratio x 12.0 12.0
Price / Book Value ratio x 2.0 1.0
Market Cap Rs m 712,828 712,828
Dividends per share (Unadj.) Rs 6.4 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GAIL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY21, from 0.9x 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 34.5x during FY21, from 27.5x 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 8.3% during FY21, from 14.8% 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 10.6% during FY21, from 16.0% 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 5.6% during FY21, from 9.9% 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 0.9 0.9
Debtors’ Days Days 2 2
Interest coverage x 27.5 34.5
Debt to equity ratio x 0.1 0.1
Return on assets % 9.9 5.6
Return on equity % 14.8 8.3
Return on capital employed % 16.0 10.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

GAIL Share Price Performance

Over the last one year, GAIL share price has moved up from Rs 87.4 to Rs 158.1, registering a gain of Rs 70.7 or around 80.8%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 19,208.9 (down 0.9%). Over the last one year it has moved up from 12,122.5 to 19,208.9, a gain of 7,086 points (up 58.5%).

Overall, the S&P BSE SENSEX is up 52.0% over the year.

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

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GAIL Announces Quarterly Results (1QFY22); Net Profit Up 796.2% (Quarterly Result Update)

Aug 9, 2021 | Updated on Aug 9, 2021

For the quarter ended June 2021, GAIL has posted a net profit of Rs 17 bn (up 796.2% YoY). Sales on the other hand came in at Rs 176 bn (up 44.4% YoY). Read on for a complete analysis of GAIL's quarterly results.

GAIL 2019-20 Annual Report Analysis (Annual Result Update)

Nov 20, 2020 | Updated on Nov 20, 2020

Here's an analysis of the annual report of GAIL for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of GAIL. Also includes updates on the valuation of GAIL.

GAIL Announces Quarterly Results (1QFY21); Net Profit Down 80.2% (Quarterly Result Update)

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For the quarter ended June 2020, GAIL has posted a net profit of Rs 3 bn (down 80.2% YoY). Sales on the other hand came in at Rs 121 bn (down 34.0% YoY). Read on for a complete analysis of GAIL's quarterly results.

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