GUJARAT AMBUJA 2021-22 Annual Report Analysis

Wed, 27 Jul

GUJARAT AMBUJA 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.

GUJARAT AMBUJA Income Statement Analysis

• Operating income during the year fell 0.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.7% in FY22 as against 11.3% in FY21.
• Depreciation charges decreased by 5.7% and finance costs decreased by 1.6% YoY, respectively.
• Other income grew by 87.4% YoY.
• Net profit for the year grew by 40.6% YoY.
• Net profit margins during the year grew from 7.2% in FY21 to 10.2% in FY22.

GUJARAT AMBUJA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	47,053	46,703	-0.7%
Other income	Rs m	289	541	87.4%
Total Revenues	Rs m	47,342	47,244	-0.2%
Gross profit	Rs m	5,326	6,871	29.0%
Depreciation	Rs m	1,033	973	-5.7%
Interest	Rs m	58	57	-1.6%
Profit before tax	Rs m	4,524	6,382	41.1%
Tax	Rs m	1,143	1,627	42.3%
Profit after tax	Rs m	3,381	4,754	40.6%
Gross profit margin	%	11.3	14.7
Effective tax rate	%	25.3	25.5
Net profit margin	%	7.2	10.2

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GUJARAT AMBUJA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 6 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 27.4%.
• Long-term debt stood at Rs 26 million as compared to Rs 21 million during FY21, a growth of 23.6%.
• Current assets rose 30% and stood at Rs 16 billion, while fixed assets rose 24% and stood at Rs 11 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 28 billion as against Rs 22 billion during FY21, thereby witnessing a growth of 27%.

GUJARAT AMBUJA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	16,566	21,183	27.9
Current Liabilities	Rs m	4,401	5,609	27.4
Long-term Debt	Rs m	21	26	23.6
Total Liabilities	Rs m	21,629	27,526	27.3
Current assets	Rs m	12,643	16,383	29.6
Fixed Assets	Rs m	8,986	11,144	24.0
Total Assets	Rs m	21,629	27,526	27.3

GUJARAT AMBUJA Cash Flow Statement Analysis

• GUJARAT AMBUJA's cash flow from operating activities (CFO) during FY22 stood at Rs 6 billion, an improvement of 100.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -8 billion, an improvement of 157.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 998 million, an improvement of 5,604% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -809 million from the Rs -26 million net cash flows seen during FY21.

GUJARAT AMBUJA 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	2,972	5,958	100.5%
Cash Flow from Investing Activities	Rs m	-3,016	-7,766	-
Cash Flow from Financing Activities	Rs m	18	998	5,604.0%
Net Cash Flow	Rs m	-26	-809	-

Current Valuations for GUJARAT AMBUJA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.7, an improvement from the EPS of Rs 14.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 292.8, stands at 14.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 8.0 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	205.2	203.6
TTM Earnings per share	Rs	14.7	20.7
Diluted earnings per share	Rs	14.7	20.7
Price to Cash Flow	x	6.7	8.0
TTM P/E ratio	x	8.7	14.1
Price / Book Value ratio	x	2.3	2.2
Market Cap	Rs m	37,376	45,603
Dividends per share (Unadj.)	Rs	0.6	0.7

Ratio Analysis for GUJARAT AMBUJA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY22, from 2.9x 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 improved and stood at 113.4x during FY22, from 79.4x 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 22.4% during FY22, from 20.4% 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 30.4% during FY22, from 27.6% 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 17.5% during FY22, from 15.9% 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	2.9	2.9
Debtors’ Days	Days	2	2
Interest coverage	x	79.4	113.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.9	17.5
Return on equity	%	20.4	22.4
Return on capital employed	%	27.6	30.4

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 189.0 to Rs 292.8, registering a gain of Rs 103.9 or around 55.0%.

Overall, the S&P BSE SENSEX is up 5.2% 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