GUJARAT ALKALIES 2017-18 Annual Report Analysis

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GUJARAT ALKALIES 2017-18 Annual Report Analysis
Wed, 19 Dec

GUJARAT ALKALIES 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.

GUJARAT ALKALIES Income Statement Analysis

  • Operating income during the year rose 18.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 75.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 32.1% in FY18 as against 21.7% in FY17.
  • Depreciation charges increased by 14.8% and finance costs increased by 16.1% YoY, respectively.
  • Other income grew by 89.1% YoY.
  • Net profit for the year grew by 73.9% YoY.
  • Net profit margins during the year grew from 14.5% in FY17 to 20.9% in FY18.

GUJARAT ALKALIES Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 20,702 24,545 18.6%
Other income Rs m 559 1,057 89.1%
Total Revenues Rs m 21,261 25,603 20.4%
Gross profit Rs m 4,496 7,867 75.0%
Depreciation Rs m 1,109 1,273 14.8%
Interest Rs m 128 149 16.1%
Profit before tax Rs m 3,818 7,502 96.5%
Tax Rs m 733 2,149 193.3%
Profit after tax Rs m 3,073 5,345 73.9%
Gross profit margin % 21.7 32.1
Effective tax rate % 19.2 28.6
Net profit margin % 14.5 20.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GUJARAT ALKALIES Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 5 billion as compared to Rs 4 billion in FY17, thereby witnessing an increase of 17.0%.
  • Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY17, a fall of 19.2%.
  • Current assets rose 26% and stood at Rs 13 billion, while fixed assets rose 6% and stood at Rs 24 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 50 billion as against Rs 44 billion during FY17, thereby witnessing a growth of 12%.

GUJARAT ALKALIES Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 33,557 38,210 13.9
 
Current Liabilities Rs m 4,086 4,780 17.0
Long-term Debt Rs m 2,844 2,298 -19.2
Total Liabilities Rs m 44,354 49,703 12.1
 
Current assets Rs m 10,128 12,750 25.9
Fixed Assets Rs m 22,242 23,561 5.9
Total Assets Rs m 44,354 49,703 12.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GUJARAT ALKALIES Cash Flow Statement Analysis

  • GUJARAT ALKALIES's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion, an improvement of 2.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion 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 28 million from the Rs 488 million net cash flows seen during FY17.

GUJARAT ALKALIES 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 5,021 5,139 2.3%
Cash Flow from Investing Activities Rs m -4,667 -3,947 -
Cash Flow from Financing Activities Rs m 135 -1,163 -
Net Cash Flow Rs m 488 28 -94.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for GUJARAT ALKALIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 72.8, an improvement from the EPS of Rs 41.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 553.6, stands at 5.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.1 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 281.9 334.2
TTM Earnings per share Rs 41.8 72.8
Diluted earnings per share Rs 41.8 72.8
Price to Cash Flow x 9.7 6.1
TTM P/E ratio x 5.9 5.9
Price / Book Value ratio x 0.7 1.3
Market Cap Rs m 40,656 40,656
Dividends per share (Unadj.) Rs 5.0 6.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for GUJARAT ALKALIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.7x during FY18, from 2.5x 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 51.4x during FY18, from 30.8x 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 14.0% during FY18, from 9.2% 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 18.9% during FY18, from 10.8% 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 11.1% during FY18, from 7.2% 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 2.5 2.7
Debtors’ Days Days 58 60
Interest coverage x 30.8 51.4
Debt to equity ratio x 0.1 0.1
Return on assets % 7.2 11.1
Return on equity % 9.2 14.0
Return on capital employed % 10.8 18.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

GUJARAT ALKALIES Share Price Performance

Over the last one year, GUJARAT ALKALIES share price has moved up from Rs 754.6 to Rs 553.6, registering a loss of Rs 201.0 or around 26.6%.

Overall, the S&P BSE SENSEX is up 8.7% over the year.

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

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GUJARAT ALKALIES 2018-19 Annual Report Analysis (Annual Result Update)

Sep 24, 2019 | Updated on Sep 24, 2019

Here's an analysis of the annual report of GUJARAT ALKALIES for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of GUJARAT ALKALIES. Also includes updates on the valuation of GUJARAT ALKALIES.

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