GUJARAT AMBUJA 2020-21 Annual Report Analysis

Wed, 31 Mar

GUJARAT AMBUJA 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.

GUJARAT AMBUJA Income Statement Analysis

• Operating income during the year rose 23.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 89.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.3% in FY21 as against 7.4% in FY20.
• Depreciation charges increased by 2.5% and finance costs decreased by 38.4% YoY, respectively.
• Other income grew by 194.7% YoY.
• Net profit for the year grew by 131.8% YoY.
• Net profit margins during the year grew from 3.8% in FY20 to 7.2% in FY21.

GUJARAT AMBUJA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	38,166	47,053	23.3%
Other income	Rs m	98	289	194.7%
Total Revenues	Rs m	38,264	47,342	23.7%
Gross profit	Rs m	2,817	5,326	89.1%
Depreciation	Rs m	1,008	1,033	2.5%
Interest	Rs m	94	58	-38.4%
Profit before tax	Rs m	1,814	4,524	149.5%
Tax	Rs m	355	1,143	222.0%
Profit after tax	Rs m	1,458	3,381	131.8%
Gross profit margin	%	7.4	11.3
Effective tax rate	%	19.6	25.3
Net profit margin	%	3.8	7.2

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GUJARAT AMBUJA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 4 billion in FY20, thereby witnessing an increase of 25.6%.
• Long-term debt stood at Rs 21 million as compared to Rs 14 million during FY20, a growth of 47.2%.
• Current assets rose 41% and stood at Rs 13 billion, while fixed assets rose 7% and stood at Rs 9 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 22 billion as against Rs 17 billion during FY20, thereby witnessing a growth of 25%.

GUJARAT AMBUJA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	13,265	16,566	24.9
Current Liabilities	Rs m	3,501	4,398	25.6
Long-term Debt	Rs m	14	21	47.2
Total Liabilities	Rs m	17,364	21,625	24.5
Current assets	Rs m	8,981	12,644	40.8
Fixed Assets	Rs m	8,382	8,981	7.1
Total Assets	Rs m	17,364	21,625	24.5

GUJARAT AMBUJA Cash Flow Statement Analysis

• GUJARAT AMBUJA's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 23.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion, an improvement of 406.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 7 million, an improvement of 101% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -26 million from the Rs 842 million net cash flows seen during FY20.

GUJARAT AMBUJA 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	2,409	2,982	23.8%
Cash Flow from Investing Activities	Rs m	-595	-3,016	-
Cash Flow from Financing Activities	Rs m	-972	7	-
Net Cash Flow	Rs m	842	-26	-

Current Valuations for GUJARAT AMBUJA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.7, an improvement from the EPS of Rs 12.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 128.0, stands at 8.7 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 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 8.5 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	332.8	205.2
TTM Earnings per share	Rs	12.7	14.7
Diluted earnings per share	Rs	6.4	14.7
Price to Cash Flow	x	9.6	8.5
TTM P/E ratio	x	16.3	8.7
Price / Book Value ratio	x	1.3	2.3
Market Cap	Rs m	17,722	37,376
Dividends per share (Unadj.)	Rs	0.5	0.6

Ratio Analysis for GUJARAT AMBUJA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY21, from 2.6x 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 79.4x during FY21, from 20.4x 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 20.4% 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 27.6% during FY21, from 14.4% 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 15.9% during FY21, from 8.9% 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	2.6	2.9
Debtors’ Days	Days	1	2
Interest coverage	x	20.4	79.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.9	15.9
Return on equity	%	11.0	20.4
Return on capital employed	%	14.4	27.6

To see how GUJARAT AMBUJA has performed over the last 5 years, please visit here.

GUJARAT AMBUJA Share Price Performance

Over the last one year, GUJARAT AMBUJA share price has moved up from Rs 103.8 to Rs 128.0, registering a gain of Rs 24.3 or around 23.4%.

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

(To know more, check out historical annual results for GUJARAT AMBUJA and quarterly results for GUJARAT AMBUJA)

Read: Latest Annual Report Analysis of GUJARAT AMBUJA