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GFL 2020-21 Annual Report Analysis
Wed, 31 Mar

GFL 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.

GFL Income Statement Analysis

  • Operating income during the year fell 92.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 142.8% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 99.5% in FY21 as against 17.7% in FY20.
  • Depreciation charges decreased by 13.4% and finance costs decreased by 29.9% YoY, respectively.
  • Other income grew by 511.3% YoY.
  • Net profit for the year grew by 84.6% YoY.
  • Net profit margins during the year declined from 8.7% in FY20 to 212.3% in FY21.

GFL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 27,038 2,052 -92.4%
Other income Rs m 444 2,715 511.3%
Total Revenues Rs m 27,482 4,767 -82.7%
Gross profit Rs m 4,775 -2,042 -142.8%
Depreciation Rs m 3,542 3,066 -13.4%
Interest Rs m 4,452 3,123 -29.9%
Profit before tax Rs m -2,774 -5,515 98.8%
Tax Rs m -415 -1,159 179.4%
Profit after tax Rs m -2,360 -4,356 84.6%
Gross profit margin % 17.7 -99.5
Effective tax rate % 15.0 21.0
Net profit margin % -8.7 -212.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

GFL Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 4 billion as compared to Rs 35 billion in FY20, thereby witnessing an decrease of -88.9%.
  • Long-term debt down at Rs 470 million as compared to Rs 2 billion during FY20, a fall of 69.8%.
  • Current assets fell 94% and stood at Rs 2 billion, while fixed assets fell 39% and stood at Rs 34 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 36 billion as against Rs 91 billion during FY20, thereby witnessing a fall of 61%.

GFL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 21,780 3,723 -82.9
 
Current Liabilities Rs m 34,857 3,873 -88.9
Long-term Debt Rs m 1,559 470 -69.8
Total Liabilities Rs m 91,482 35,993 -60.7
 
Current assets Rs m 36,648 2,312 -93.7
Fixed Assets Rs m 54,834 33,681 -38.6
Total Assets Rs m 91,482 35,993 -60.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



GFL Cash Flow Statement Analysis

  • GFL's cash flow from operating activities (CFO) during FY21 stood at Rs -2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 738 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 560 million, an improvement of 109% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -391 million from the Rs -232 million net cash flows seen during FY20.

GFL 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 12,142 -1,557 -
Cash Flow from Investing Activities Rs m -5,676 738 -
Cash Flow from Financing Activities Rs m -6,292 560 -
Net Cash Flow Rs m -232 -391 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GFL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -39.7, an decline from the EPS of Rs -21.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 82.5, stands at -2.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 4.4 times.
  • The company's price to cash flow (P/CF) ratio stood at -8.3 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 246.1 18.7
TTM Earnings per share Rs -21.5 -39.7
Diluted earnings per share Rs -21.5 -39.7
Price to Cash Flow x 7.5 -8.3
TTM P/E ratio x -3.8 -2.7
Price / Book Value ratio x 3.0 2.9
Market Cap Rs m 65,333 10,771
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GFL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY21, from 1.1x 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 deteriorated and stood at -0.8x during FY21, from 0.4x 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 declined and down at -117.0% during FY21, from -10.8% 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 declined and down at -57.1% during FY21, from 7.2% 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 declined and down at -3.4% during FY21, from 2.3% 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 1.1 0.6
Debtors’ Days Days 1,865 316
Interest coverage x 0.4 -0.8
Debt to equity ratio x 0.1 0.1
Return on assets % 2.3 -3.4
Return on equity % -10.8 -117.0
Return on capital employed % 7.2 -57.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

GFL Share Price Performance

Over the last one year, GFL share price has moved up from Rs 81.0 to Rs 82.5, registering a gain of Rs 1.5 or around 1.8%.

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

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

Annual Report FAQs

What is the current share price of GFL?

GFL currently trades at Rs 67.7 per share. You can check out the latest share price performance of GFL here...

What was the revenue of GFL in FY21? How does it compare to earlier years?

The revenues of GFL stood at Rs 4,767 m in FY21, which was down -82.7% compared to Rs 27,482 m reported in FY20.

GFL's revenue has fallen from Rs 63,031 m in FY17 to Rs 4,767 m in FY21.

Over the past 5 years, the revenue of GFL has grown at a CAGR of -47.6%.

What was the net profit of GFL in FY21? How does it compare to earlier years?

The net loss of GFL stood at Rs -4,356 m in FY21, which was up 84.6% compared to Rs -2,360 m reported in FY20.

This compares to a net profit of Rs 13,495 m in FY19 and a net profit of Rs 2,401 m in FY18.

Over the past 5 years, GFL net profit has grown at a CAGR of NaN%.

What does the cash flow statement of GFL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of GFL reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs -1,557 m as compared to Rs 12,142 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 738 m as compared to Rs -5,676 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 560 m as compared to Rs -6,292 m in FY20.

Here's the cash flow statement of GFL for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations7,3179,5189,95612,142-1,557
From Investments-6,7445,890-9,557-5,676738
From Financial Activity532-16,681-794-6,292560
Net Cashflow1,105-1,269-395-232-391

What does the Key Ratio analysis of GFL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of GFL reveals:

  • Operating profit margins witnessed a growth and stood at 99.5% in FY21 as against 17.7% in FY20.
  • Net profit margins declined from 8.7% in FY20 to 212.3% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.1 as compared to 0.1 in FY20.

Here's the ratio/financial analysis of GFL for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)15.419.221.717.7-99.5
Net Profit Margin (%)3.56.423.7-8.7-212.3
Debt to Equity Ratio (x)0.30.10.10.10.1

Read: Latest Annual Report Analysis of GFL

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