GOLDIAM INTERNATIONAL 2020-21 Annual Report Analysis

Wed, 31 Mar

GOLDIAM INTERNATIONAL 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.

GOLDIAM INTERNATIONAL Income Statement Analysis

• Operating income during the year rose 11.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 112.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.2% in FY21 as against 12.2% in FY20.
• Depreciation charges increased by 45.6% and finance costs decreased by 73.4% YoY, respectively.
• Other income declined by 67.4% YoY.
• Net profit for the year grew by 48.1% YoY.
• Net profit margins during the year grew from 12.4% in FY20 to 16.5% in FY21.

GOLDIAM INTERNATIONAL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,645	4,060	11.4%
Other income	Rs m	221	72	-67.4%
Total Revenues	Rs m	3,866	4,132	6.9%
Gross profit	Rs m	443	941	112.3%
Depreciation	Rs m	25	36	45.6%
Interest	Rs m	20	5	-73.4%
Profit before tax	Rs m	620	972	56.7%
Tax	Rs m	167	301	80.0%
Profit after tax	Rs m	453	671	48.1%
Gross profit margin	%	12.2	23.2
Effective tax rate	%	27.0	31.0
Net profit margin	%	12.4	16.5

Must See: Do You Invest in Midcap Stocks? Here's a Great News for You

GOLDIAM INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 1 billion as compared to Rs 892 million in FY20, thereby witnessing an increase of 46.2%.
• Current assets rose 23% and stood at Rs 5 billion, while fixed assets rose 15% and stood at Rs 847 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 6 billion as against Rs 5 billion during FY20, thereby witnessing a growth of 22%.

GOLDIAM INTERNATIONAL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,100	4,648	13.4
Current Liabilities	Rs m	892	1,304	46.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	5,023	6,136	22.2
Current assets	Rs m	4,287	5,289	23.4
Fixed Assets	Rs m	736	847	15.1
Total Assets	Rs m	5,023	6,136	22.2

GOLDIAM INTERNATIONAL Cash Flow Statement Analysis

• GOLDIAM INTERNATIONAL's cash flow from operating activities (CFO) during FY21 stood at Rs 491 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -117 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -3 million, an improvement of 99% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 370 million from the Rs -90 million net cash flows seen during FY20.

GOLDIAM INTERNATIONAL 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	673	491	-27.1%
Cash Flow from Investing Activities	Rs m	-241	-117	-
Cash Flow from Financing Activities	Rs m	-523	-3	-
Net Cash Flow	Rs m	-90	370	-

Current Valuations for GOLDIAM INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 30.3, an improvement from the EPS of Rs 20.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 340.9, stands at 55.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.0 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 7.2 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	164.4	183.1
TTM Earnings per share	Rs	20.4	30.3
Diluted earnings per share	Rs	4.2	6.2
Price to Cash Flow	x	20.2	7.2
TTM P/E ratio	x	21.3	55.4
Price / Book Value ratio	x	0.7	1.1
Market Cap	Rs m	2,844	5,112
Dividends per share (Unadj.)	Rs	1.3	1.6

Ratio Analysis for GOLDIAM INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.1x during FY21, from 4.8x 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 186.8x during FY21, from 32.5x 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 improved and stood at 14.4% during FY21, from 11.0% 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 improved and stood at 21.0% during FY21, from 15.6% 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 11.0% during FY21, from 9.4% 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	4.8	4.1
Debtors’ Days	Days	998	1,161
Interest coverage	x	32.5	186.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.4	11.0
Return on equity	%	11.0	14.4
Return on capital employed	%	15.6	21.0

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

GOLDIAM INTERNATIONAL Share Price Performance

Over the last one year, GOLDIAM INTERNATIONAL share price has moved up from Rs 88.4 to Rs 340.9, registering a gain of Rs 252.5 or around 285.6%.

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

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

Read: Latest Annual Report Analysis of GOLDIAM INTERNATIONAL