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GTL 2020-21 Annual Report Analysis
Wed, 31 Mar

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 146.6% in FY20 to 20.7% 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 % -146.6 20.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

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 5.2, stands at 1.2 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 1.6 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 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 -0.1 1.6
TTM P/E ratio x -0.1 1.2
Price / Book Value ratio x 0.0 0.0
Market Cap Rs m 486 797
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 1.1 to Rs 5.2, registering a gain of Rs 4.1 or around 382.4%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 11,919.9 (down 0.9%). Over the last one year it has moved up from 6,403.4 to 11,919.9, a gain of 5,517 points (up 86.1%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Annual Report FAQs

What is the current share price of GTL?

GTL currently trades at Rs 9.4 per share. You can check out the latest share price performance of GTL here...

What was the revenue of GTL in FY21? How does it compare to earlier years?

The revenues of GTL stood at Rs 2,560 m in FY21, which was up 12.4% compared to Rs 2,277 m reported in FY20.

GTL's revenue has fallen from Rs 16,750 m in FY17 to Rs 2,560 m in FY21.

Over the past 5 years, the revenue of GTL has grown at a CAGR of -37.5%.

What was the net profit of GTL in FY21? How does it compare to earlier years?

The net profit of GTL stood at Rs 458 m in FY21, which was down -114.5% compared to Rs -3,158 m reported in FY20.

This compares to a net loss of Rs -4,151 m in FY19 and a net loss of Rs -8,802 m in FY18.

Over the past 5 years, GTL net profit has grown at a CAGR of NaN%.

What does the cash flow statement of GTL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of GTL reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 634 m as compared to Rs 826 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -5 m as compared to Rs 0 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -643 m as compared to Rs -1,034 m in FY20.

Here's the cash flow statement of GTL for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations7611,404923826634
From Investments53-13-630-5
From Financial Activity-783-2,122-1,049-1,034-643
Net Cashflow190-828-103-136-13

What does the Key Ratio analysis of GTL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of GTL reveals:

  • Operating profit margins witnessed a fall and down at 26.0% in FY21 as against 110.8% in FY20.
  • Net profit margins grew from 146.6% in FY20 to 20.7% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of GTL for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)-41.6-55.1-63.4-110.826.0
Net Profit Margin (%)-58.4-62.4-76.7-146.620.7
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of GTL

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