GFL 2020-21 Annual Report Analysis

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GFL 2020-21 Annual Report Analysis
Mon, 1 Nov

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 8.6% in FY20 to 91.4% 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 % -8.6 -91.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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 79.0, stands at -2.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 5.2 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 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 7.3 -6.7
TTM P/E ratio x -2.1 -2.1
Price / Book Value ratio x 3.0 2.9
Market Cap Rs m 8,678 8,678
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 down from Rs 79.6 to Rs 79.0, registering a loss of Rs 0.6 or around 0.7%.

Overall, the S&P BSE SENSEX is up 50.7% over the year.

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

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