GUJARAT ALKALIES 2020-21 Annual Report Analysis

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GUJARAT ALKALIES 2020-21 Annual Report Analysis
Fri, 22 Oct

GUJARAT ALKALIES 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.

GUJARAT ALKALIES Income Statement Analysis

  • Operating income during the year fell 10.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 38.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.7% in FY21 as against 21.2% in FY20.
  • Depreciation charges increased by 7.7% and finance costs increased by 10.1% YoY, respectively.
  • Other income declined by 24.9% YoY.
  • Net profit for the year declined by 49.9% YoY.
  • Net profit margins during the year declined from 11.8% in FY20 to 6.7% in FY21.

GUJARAT ALKALIES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 27,246 24,295 -10.8%
Other income Rs m 898 675 -24.9%
Total Revenues Rs m 28,144 24,969 -11.3%
Gross profit Rs m 5,777 3,582 -38.0%
Depreciation Rs m 1,618 1,744 7.7%
Interest Rs m 140 155 10.1%
Profit before tax Rs m 4,916 2,358 -52.0%
Tax Rs m 1,588 690 -56.6%
Profit after tax Rs m 3,328 1,669 -49.9%
Gross profit margin % 21.2 14.7
Effective tax rate % 32.3 29.2
Net profit margin % 11.8 6.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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GUJARAT ALKALIES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 6 billion as compared to Rs 5 billion in FY20, thereby witnessing an increase of 15.8%.
  • Long-term debt stood at Rs 4 billion as compared to Rs 1 billion during FY20, a growth of 216.1%.
  • Current assets fell 21% and stood at Rs 11 billion, while fixed assets rose 34% and stood at Rs 61 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 72 billion as against Rs 59 billion during FY20, thereby witnessing a growth of 21%.

GUJARAT ALKALIES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 45,957 53,747 17.0
 
Current Liabilities Rs m 5,280 6,114 15.8
Long-term Debt Rs m 1,371 4,333 216.1
Total Liabilities Rs m 58,909 71,545 21.4
 
Current assets Rs m 13,720 10,886 -20.7
Fixed Assets Rs m 45,189 60,659 34.2
Total Assets Rs m 58,909 71,545 21.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



GUJARAT ALKALIES Cash Flow Statement Analysis

  • GUJARAT ALKALIES's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 2 billion, an improvement of 255% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 3 billion from the Rs -1 billion net cash flows seen during FY20.

GUJARAT ALKALIES 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 6,297 4,212 -33.1%
Cash Flow from Investing Activities Rs m -6,345 -3,324 -
Cash Flow from Financing Activities Rs m -1,459 2,261 -
Net Cash Flow Rs m -1,498 3,128 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GUJARAT ALKALIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.7, an decline from the EPS of Rs 45.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 727.0, stands at 26.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.6 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 371.0 330.8
TTM Earnings per share Rs 45.3 22.7
Diluted earnings per share Rs 45.3 22.7
Price to Cash Flow x 10.8 15.6
TTM P/E ratio x 26.9 26.9
Price / Book Value ratio x 0.6 0.4
Market Cap Rs m 53,389 53,389
Dividends per share (Unadj.) Rs 8.0 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GUJARAT ALKALIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY21, from 2.6x 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 16.3x during FY21, from 36.0x 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 3.1% during FY21, from 7.2% 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 4.3% during FY21, from 10.7% 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 2.5% during FY21, from 5.9% 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 2.6 1.8
Debtors’ Days Days 501 434
Interest coverage x 36.0 16.3
Debt to equity ratio x 0.0 0.1
Return on assets % 5.9 2.5
Return on equity % 7.2 3.1
Return on capital employed % 10.7 4.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 313.2 to Rs 727.0, registering a gain of Rs 413.9 or around 132.2%.

Overall, the S&P BSE SENSEX is up 50.6% over the year.

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

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Related Views on News

GUJARAT ALKALIES Announces Quarterly Results (1QFY22); Net Profit Up 98.4% (Quarterly Result Update)

Aug 11, 2021 | Updated on Aug 11, 2021

For the quarter ended June 2021, GUJARAT ALKALIES has posted a net profit of Rs 635 m (up 98.4% YoY). Sales on the other hand came in at Rs 7 bn (up 52.6% YoY). Read on for a complete analysis of GUJARAT ALKALIES's quarterly results.

GUJARAT ALKALIES Announces Quarterly Results (3QFY20); Net Profit Down 63.1% (Quarterly Result Update)

Feb 11, 2020 | Updated on Feb 11, 2020

For the quarter ended December 2019, GUJARAT ALKALIES has posted a net profit of Rs 598 m (down 63.1% YoY). Sales on the other hand came in at Rs 7 bn (down 19.7% YoY). Read on for a complete analysis of GUJARAT ALKALIES's quarterly results.

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