GEOJIT FINANCIAL SERVICES 2019-20 Annual Report Analysis

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GEOJIT FINANCIAL SERVICES 2019-20 Annual Report Analysis
Thu, 3 Sep

GEOJIT FINANCIAL SERVICES has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

GEOJIT FINANCIAL SERVICES Income Statement Analysis

  • Operating income during the year fell 0.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 16.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 33.1% in FY20 as against 28.2% in FY19.
  • Depreciation charges increased by 19.5% and finance costs increased by 16.5% YoY, respectively.
  • Other income declined by 46.4% YoY.
  • Net profit for the year grew by 82.5% YoY.
  • Net profit margins during the year grew from 8.9% in FY19 to 16.5% in FY20.

GEOJIT FINANCIAL SERVICES Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 3,079 3,054 -0.8%
Other income Rs m 19 10 -46.4%
Total Revenues Rs m 3,098 3,064 -1.1%
Gross profit Rs m 868 1,009 16.3%
Depreciation Rs m 209 250 19.5%
Interest Rs m 25 29 16.5%
Profit before tax Rs m 653 741 13.5%
Tax Rs m 279 187 -32.8%
Profit after tax Rs m 277 506 82.5%
Gross profit margin % 28.2 33.1
Effective tax rate % 42.7 25.3
Net profit margin % 8.9 16.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Tomorrow at 5pm: Get the details of India's #1 defence stock

GEOJIT FINANCIAL SERVICES Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 3 billion as compared to Rs 3 billion in FY19, thereby witnessing an increase of 6.4%.
  • Current assets rose 0% and stood at Rs 8 billion, while fixed assets fell 1% and stood at Rs 720 million in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 9 billion as against Rs 9 billion during FY19, thereby witnessing a growth of 0%.

GEOJIT FINANCIAL SERVICES Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 5,284 5,041 -4.6
 
Current Liabilities Rs m 3,036 3,230 6.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 9,068 9,087 0.2
 
Current assets Rs m 7,920 7,922 0.0
Fixed Assets Rs m 725 720 -0.8
Total Assets Rs m 9,068 9,087 0.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GEOJIT FINANCIAL SERVICES Cash Flow Statement Analysis

  • GEOJIT FINANCIAL SERVICES's cash flow from operating activities (CFO) during FY20 stood at Rs 1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -304 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -821 million on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 244 million from the Rs 113 million net cash flows seen during FY19.

GEOJIT FINANCIAL SERVICES Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m -242 1,368 -
Cash Flow from Investing Activities Rs m 990 -304 -
Cash Flow from Financing Activities Rs m -636 -821 -
Net Cash Flow Rs m 113 244 115.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for GEOJIT FINANCIAL SERVICES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.1, an improvement from the EPS of Rs 1.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 39.2, stands at 12.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 2.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 12.9 12.8
TTM Earnings per share Rs 1.2 2.1
Diluted earnings per share Rs 1.2 2.2
Price to Cash Flow x 16.0 11.2
TTM P/E ratio x 13.3 12.8
Price / Book Value ratio x 3.3 1.4
Market Cap Rs m 9,329 8,975
Dividends per share (Unadj.) Rs 1.0 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for GEOJIT FINANCIAL SERVICES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.5x during FY20, from 2.6x during FY19. 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 26.6x during FY20, from 27.3x during FY19. 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 10.0% during FY20, from 5.2% during FY20. 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 14.3% during FY20, from 11.0% during FY19. 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 5.9% during FY20, from 3.3% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 2.6 2.5
Debtors’ Days Days 155 91
Interest coverage x 27.3 26.6
Debt to equity ratio x 0.0 0.0
Return on assets % 3.3 5.9
Return on equity % 5.2 10.0
Return on capital employed % 11.0 14.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how GEOJIT FINANCIAL SERVICES has performed over the last 5 years, please visit here.

GEOJIT FINANCIAL SERVICES Share Price Performance

Over the last one year, GEOJIT FINANCIAL SERVICES share price has moved up from Rs 25.3 to Rs 39.2, registering a gain of Rs 13.9 or around 54.7%.

Overall, the S&P BSE SENSEX is up 6.7% over the year.

(To know more, check out historical annual results for GEOJIT FINANCIAL SERVICES and quarterly results for GEOJIT FINANCIAL SERVICES)

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