GTL 2020-21 Annual Report Analysis

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GTL 2020-21 Annual Report Analysis
Mon, 1 Nov

GTL 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.

GTL 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 124.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.0% in FY21 as against 110.8% in FY20.
  • Depreciation charges increased by 2.9% and finance costs decreased by 50.2% YoY, respectively.
  • Other income grew by 184.5% YoY.
  • Net profit for the year declined by 114.5% YoY.
  • Net profit margins during the year grew from 138.7% in FY20 to 17.9% in FY21.

GTL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 2,154 2,210 2.6%
Other income Rs m 123 350 184.5%
Total Revenues Rs m 2,277 2,560 12.4%
Gross profit Rs m -2,387 575 -124.1%
Depreciation Rs m 45 47 2.9%
Interest Rs m 844 420 -50.2%
Profit before tax Rs m -3,153 458 -114.5%
Tax Rs m 5 0 -100.0%
Profit after tax Rs m -3,158 458 -114.5%
Gross profit margin % -110.8 26.0
Effective tax rate % -0.2 0.0
Net profit margin % -138.7 17.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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GTL Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 74 billion as compared to Rs 76 billion in FY20, thereby witnessing an decrease of -2.0%.
  • Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY20, a growth of 11.1%.
  • Current assets fell 48% and stood at Rs 696 million, while fixed assets fell 2% and stood at Rs 1 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 2 billion as against Rs 3 billion during FY20, thereby witnessing a fall of 25%.

GTL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m -74,978 -74,306 -0.9
 
Current Liabilities Rs m 75,845 74,323 -2.0
Long-term Debt Rs m 1,743 1,937 11.1
Total Liabilities Rs m 2,647 1,973 -25.4
 
Current assets Rs m 1,341 696 -48.1
Fixed Assets Rs m 1,306 1,277 -2.2
Total Assets Rs m 2,647 1,973 -25.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



GTL Cash Flow Statement Analysis

  • GTL's cash flow from operating activities (CFO) during FY21 stood at Rs 634 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -5 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -643 million, an improvement of 38% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -13 million from the Rs -136 million net cash flows seen during FY20.

GTL 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 826 634 -23.3%
Cash Flow from Investing Activities Rs m 0 -5 -
Cash Flow from Financing Activities Rs m -1,034 -643 -
Net Cash Flow Rs m -136 -13 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GTL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.9, an improvement from the EPS of Rs -20.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 13.8, stands at 4.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.3 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 13.7 14.0
TTM Earnings per share Rs -20.1 2.9
Diluted earnings per share Rs -20.1 2.9
Price to Cash Flow x -0.7 4.3
TTM P/E ratio x 4.2 4.2
Price / Book Value ratio x 0.0 0.0
Market Cap Rs m 2,166 2,166
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GTL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.0x during FY21, from 0.0x 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 2.1x during FY21, from -2.7x 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 -0.6% during FY21, from 4.2% 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 -1.2% during FY21, from 3.2% 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 improved and stood at 44.5% during FY21, from -87.4% 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 0.0 0.0
Debtors’ Days Days 0 0
Interest coverage x -2.7 2.1
Debt to equity ratio x 0.0 0.0
Return on assets % -87.4 44.5
Return on equity % 4.2 -0.6
Return on capital employed % 3.2 -1.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

GTL Share Price Performance

Over the last one year, GTL share price has moved up from Rs 3.1 to Rs 13.8, registering a gain of Rs 10.6 or around 339.9%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 15,323.7 (up 2.4%). Over the last one year it has moved up from 9,663.6 to 15,323.7, a gain of 5,660 points (up 58.6%).

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

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

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