GEOJIT FINANCIAL SERVICES 2021-22 Annual Report Analysis

Sat, 25 Jun

GEOJIT FINANCIAL SERVICES 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.

GEOJIT FINANCIAL SERVICES Income Statement Analysis

• Operating income during the year rose 17.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 46.2% in FY22 as against 44.6% in FY21.
• Depreciation charges increased by 6.0% and finance costs increased by 67.9% YoY, respectively.
• Other income declined by 53.7% YoY.
• Net profit for the year grew by 22.3% YoY.
• Net profit margins during the year grew from 29.0% in FY21 to 30.1% in FY22.

GEOJIT FINANCIAL SERVICES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	4,250	5,003	17.7%
Other income	Rs m	18	8	-53.7%
Total Revenues	Rs m	4,268	5,011	17.4%
Gross profit	Rs m	1,897	2,314	21.9%
Depreciation	Rs m	233	247	6.0%
Interest	Rs m	31	52	67.9%
Profit before tax	Rs m	1,652	2,023	22.5%
Tax	Rs m	420	516	22.9%
Profit after tax	Rs m	1,232	1,507	22.3%
Gross profit margin	%	44.6	46.2
Effective tax rate	%	25.4	25.5
Net profit margin	%	29.0	30.1

GEOJIT FINANCIAL SERVICES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 6 billion as compared to Rs 5 billion in FY21, thereby witnessing an increase of 27.4%.
• Current assets rose 11% and stood at Rs 10 billion, while fixed assets rose 63% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 14 billion as against Rs 12 billion during FY21, thereby witnessing a growth of 21%.

GEOJIT FINANCIAL SERVICES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,868	6,952	18.5
Current Liabilities	Rs m	5,057	6,444	27.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	11,624	14,094	21.3
Current assets	Rs m	9,285	10,274	10.7
Fixed Assets	Rs m	2,339	3,820	63.3
Total Assets	Rs m	11,624	14,094	21.3

GEOJIT FINANCIAL SERVICES Cash Flow Statement Analysis

• GEOJIT FINANCIAL SERVICES's cash flow from operating activities (CFO) during FY22 stood at Rs 831 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -149 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -261 million, an improvement of 17% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 422 million from the Rs -629 million net cash flows seen during FY21.

GEOJIT FINANCIAL SERVICES 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	-1,203	831	-
Cash Flow from Investing Activities	Rs m	887	-149	-
Cash Flow from Financing Activities	Rs m	-314	-261	-
Net Cash Flow	Rs m	-629	422	-

Current Valuations for GEOJIT FINANCIAL SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.3, an improvement from the EPS of Rs 5.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 51.3, stands at 8.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 2.5 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	17.8	20.9
TTM Earnings per share	Rs	5.2	6.3
Diluted earnings per share	Rs	5.2	6.3
Price to Cash Flow	x	8.2	10.0
TTM P/E ratio	x	9.8	8.1
Price / Book Value ratio	x	1.7	2.5
Market Cap	Rs m	9,744	17,501
Dividends per share (Unadj.)	Rs	3.5	3.0

Ratio Analysis for GEOJIT FINANCIAL SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY22, from 1.8x 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 deteriorated and stood at 40.0x during FY22, from 54.4x 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 21.7% during FY22, from 21.0% 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 29.8% during FY22, from 28.7% 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 11.1% during FY22, from 10.9% 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	1.8	1.6
Debtors’ Days	Days	967	924
Interest coverage	x	54.4	40.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.9	11.1
Return on equity	%	21.0	21.7
Return on capital employed	%	28.7	29.8

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 down from Rs 73.8 to Rs 51.3, registering a loss of Rs 22.5 or around 30.5%.

Overall, the S&P BSE SENSEX is up 0.8% 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