GFL 2021-22 Annual Report Analysis

Fri, 16 Sep

GFL 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.

GFL Income Statement Analysis

• Operating income during the year rose 541.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.9% in FY22 as against 162.4% in FY21.
• Depreciation charges increased by 3.8% and finance costs increased by 2.3% YoY, respectively.
• Other income declined by 36.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 313.8% in FY21 to 35.5% in FY22.

GFL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,070	6,857	541.0%
Other income	Rs m	2,654	1,676	-36.8%
Total Revenues	Rs m	3,724	8,533	129.2%
Gross profit	Rs m	-1,737	677	NA
Depreciation	Rs m	2,832	2,939	3.8%
Interest	Rs m	2,525	2,583	2.3%
Profit before tax	Rs m	-4,441	-3,168	NA
Tax	Rs m	-1,084	-732	NA
Profit after tax	Rs m	-3,357	-2,435	NA
Gross profit margin	%	-162.4	9.9
Effective tax rate	%	24.4	23.1
Net profit margin	%	-313.8	-35.5

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GFL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 4 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 1.7%.
• Long-term debt stood at Rs 694 million as compared to Rs 470 million during FY21, a growth of 47.6%.
• Current assets rose 56% and stood at Rs 3 billion, while fixed assets fell 1% and stood at Rs 33 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 37 billion as against Rs 36 billion during FY21, thereby witnessing a growth of 2%.

GFL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	3,723	3,519	-5.5
Current Liabilities	Rs m	3,873	3,939	1.7
Long-term Debt	Rs m	470	694	47.6
Total Liabilities	Rs m	35,993	36,769	2.2
Current assets	Rs m	1,992	3,107	56.0
Fixed Assets	Rs m	33,681	33,342	-1.0
Total Assets	Rs m	35,993	36,769	2.2

GFL Cash Flow Statement Analysis

• GFL's cash flow from operating activities (CFO) during FY22 stood at Rs 890 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 854 million, an improvement of 53% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 146 million from the Rs -391 million net cash flows seen during FY21.

GFL 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	-1,557	890	-
Cash Flow from Investing Activities	Rs m	738	-1,598	-
Cash Flow from Financing Activities	Rs m	560	854	52.5%
Net Cash Flow	Rs m	-391	146	-

Current Valuations for GFL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -22.2, an improvement from the EPS of Rs -30.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 77.0, stands at -12.9 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 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 16.6 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	9.7	62.4
TTM Earnings per share	Rs	-30.6	-22.2
Diluted earnings per share	Rs	-30.6	-22.2
Price to Cash Flow	x	-17.3	16.6
TTM P/E ratio	x	-2.7	-12.9
Price / Book Value ratio	x	2.9	2.4
Market Cap	Rs m	10,771	8,368
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GFL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY22, from 0.5x 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 -0.2x during FY22, from -0.8x 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 -69.2% during FY22, from -90.2% 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 -13.9% during FY22, from -45.7% 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 0.4% during FY22, from -2.3% 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	0.5	0.8
Debtors’ Days	Days	607	156
Interest coverage	x	-0.8	-0.2
Debt to equity ratio	x	0.1	0.2
Return on assets	%	-2.3	0.4
Return on equity	%	-90.2	-69.2
Return on capital employed	%	-45.7	-13.9

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 76.1 to Rs 77.0, registering a gain of Rs 0.9 or around 1.2%.

Overall, the S&P BSE SENSEX is up 1.1% over the year.

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