GOA CARBON 2021-22 Annual Report Analysis

Sat, 20 Aug

GOA CARBON has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

GOA CARBON Income Statement Analysis

• Operating income during the year rose 117.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 810.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.4% in FY22 as against 1.8% in FY21.
• Depreciation charges decreased by 1.6% and finance costs increased by 67.7% YoY, respectively.
• Other income grew by 287.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.4% in FY21 to 4.9% in FY22.

GOA CARBON Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	3,528	7,661	117.2%
Other income	Rs m	7	26	287.8%
Total Revenues	Rs m	3,534	7,687	117.5%
Gross profit	Rs m	62	567	810.2%
Depreciation	Rs m	21	21	-1.6%
Interest	Rs m	97	162	67.7%
Profit before tax	Rs m	-49	409	NA
Tax	Rs m	-1	31	NA
Profit after tax	Rs m	-48	378	NA
Gross profit margin	%	1.8	7.4
Effective tax rate	%	2.2	7.7
Net profit margin	%	-1.4	4.9

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GOA CARBON Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 3 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 58.1%.
• Long-term debt stood at Rs 90 million as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets rose 73% and stood at Rs 4 billion, while fixed assets fell 0% and stood at Rs 525 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 4 billion as against Rs 3 billion during FY21, thereby witnessing a growth of 59%.

GOA CARBON Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	762	1,146	50.4
Current Liabilities	Rs m	1,903	3,010	58.1
Long-term Debt	Rs m	0	90	0.0
Total Liabilities	Rs m	2,711	4,314	59.1
Current assets	Rs m	2,186	3,789	73.4
Fixed Assets	Rs m	526	525	-0.1
Total Assets	Rs m	2,711	4,314	59.1

GOA CARBON Cash Flow Statement Analysis

• GOA CARBON's cash flow from operating activities (CFO) during FY22 stood at Rs -399 million, an improvement of 164.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 1,378.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 2 billion, an improvement of 979% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 112 million from the Rs -68 million net cash flows seen during FY21.

GOA CARBON Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-151	-399	-
Cash Flow from Investing Activities	Rs m	-95	-1,400	-
Cash Flow from Financing Activities	Rs m	177	1,911	979.4%
Net Cash Flow	Rs m	-68	112	-

Current Valuations for GOA CARBON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.3, an improvement from the EPS of Rs -5.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 435.9, stands at 7.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 10.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	385.6	837.3
TTM Earnings per share	Rs	-5.3	41.3
Diluted earnings per share	Rs	-5.3	41.3
Price to Cash Flow	x	-94.1	10.0
TTM P/E ratio	x	-52.3	7.6
Price / Book Value ratio	x	3.0	3.5
Market Cap	Rs m	2,253	4,002
Dividends per share (Unadj.)	Rs	0.0	10.0

Ratio Analysis for GOA CARBON

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY22, from 1.1x during FY21. 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 3.5x during FY22, from 0.5x during FY21. 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 33.0% during FY22, from -6.3% during FY22. 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 46.2% during FY22, from 6.2% during FY21. 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 12.5% during FY22, from 1.8% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.1	1.3
Debtors’ Days	Days	666	134
Interest coverage	x	0.5	3.5
Debt to equity ratio	x	0.0	0.1
Return on assets	%	1.8	12.5
Return on equity	%	-6.3	33.0
Return on capital employed	%	6.2	46.2

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

GOA CARBON Share Price Performance

Over the last one year, GOA CARBON share price has moved up from Rs 360.9 to Rs 435.9, registering a gain of Rs 75.0 or around 20.8%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

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

Read: Latest Annual Report Analysis of GOA CARBON