GEOJIT FINANCIAL SERVICES 2020-21 Annual Report Analysis

Wed, 31 Mar

GEOJIT FINANCIAL SERVICES 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.

GEOJIT FINANCIAL SERVICES Income Statement Analysis

• Operating income during the year rose 39.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 96.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 44.6% in FY21 as against 31.6% in FY20.
• Depreciation charges decreased by 6.7% and finance costs increased by 7.1% YoY, respectively.
• Other income grew by 77.6% YoY.
• Net profit for the year grew by 142.0% YoY.
• Net profit margins during the year grew from 16.7% in FY20 to 29.0% in FY21.

GEOJIT FINANCIAL SERVICES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	3,054	4,250	39.1%
Other income	Rs m	10	18	77.6%
Total Revenues	Rs m	3,065	4,268	39.3%
Gross profit	Rs m	964	1,897	96.7%
Depreciation	Rs m	250	233	-6.7%
Interest	Rs m	29	31	7.1%
Profit before tax	Rs m	696	1,652	137.2%
Tax	Rs m	187	420	124.3%
Profit after tax	Rs m	509	1,232	142.0%
Gross profit margin	%	31.6	44.6
Effective tax rate	%	26.9	25.4
Net profit margin	%	16.7	29.0

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GEOJIT FINANCIAL SERVICES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 5 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 49.8%.
• Current assets rose 32% and stood at Rs 9 billion, while fixed assets rose 17% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 12 billion as against Rs 9 billion during FY20, thereby witnessing a growth of 29%.

GEOJIT FINANCIAL SERVICES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,985	5,868	17.7
Current Liabilities	Rs m	3,375	5,057	49.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,027	11,624	28.8
Current assets	Rs m	7,027	9,285	32.1
Fixed Assets	Rs m	2,000	2,339	17.0
Total Assets	Rs m	9,027	11,624	28.8

GEOJIT FINANCIAL SERVICES Cash Flow Statement Analysis

• GEOJIT FINANCIAL SERVICES's cash flow from operating activities (CFO) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 887 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -314 million, an improvement of 62% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -629 million from the Rs 244 million net cash flows seen during FY20.

GEOJIT FINANCIAL SERVICES 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	1,368	-1,203	-
Cash Flow from Investing Activities	Rs m	-304	887	-
Cash Flow from Financing Activities	Rs m	-821	-314	-
Net Cash Flow	Rs m	244	-629	-

Current Valuations for GEOJIT FINANCIAL SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.2, an improvement from the EPS of Rs 2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 50.3, stands at 9.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 6.7 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	12.8	17.8
TTM Earnings per share	Rs	2.1	5.2
Diluted earnings per share	Rs	2.1	5.2
Price to Cash Flow	x	5.7	6.7
TTM P/E ratio	x	8.5	9.8
Price / Book Value ratio	x	1.4	1.7
Market Cap	Rs m	6,863	9,744
Dividends per share (Unadj.)	Rs	1.5	3.5

Ratio Analysis for GEOJIT FINANCIAL SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY21, from 2.1x 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 54.4x during FY21, from 25.1x 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 21.0% during FY21, from 10.2% 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 improved and stood at 28.7% during FY21, from 14.5% 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 10.9% during FY21, from 6.0% 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	2.1	1.8
Debtors’ Days	Days	909	967
Interest coverage	x	25.1	54.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.0	10.9
Return on equity	%	10.2	21.0
Return on capital employed	%	14.5	28.7

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 18.2 to Rs 50.3, registering a gain of Rs 32.1 or around 176.1%.

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

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

Read: Latest Annual Report Analysis of GEOJIT FINANCIAL SERVICES