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GFL 2018-19 Annual Report Analysis
Sun, 31 Mar

GFL has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

GFL Income Statement Analysis

  • Operating income during the year rose 50.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 70.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.7% in FY19 as against 19.2% in FY18.
  • Depreciation charges increased by 11.3% and finance costs decreased by 19.9% YoY, respectively.
  • Other income declined by 2.8% YoY.
  • Net profit for the year grew by 461.9% YoY.
  • Net profit margins during the year grew from 6.4% in FY18 to 23.7% in FY19.

GFL Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 37,801 56,981 50.7%
Other income Rs m 1,328 1,291 -2.8%
Total Revenues Rs m 39,129 58,272 48.9%
Gross profit Rs m 7,251 12,347 70.3%
Depreciation Rs m 2,992 3,331 11.3%
Interest Rs m 2,792 2,236 -19.9%
Profit before tax Rs m 2,795 8,071 188.8%
Tax Rs m 394 -5,423 -1,477.8%
Profit after tax Rs m 2,401 13,495 461.9%
Gross profit margin % 19.2 21.7
Effective tax rate % 14.1 -67.2
Net profit margin % 6.4 23.7
* 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 FY19 stood at Rs 35 billion as compared to Rs 30 billion in FY18, thereby witnessing an increase of 16.7%.
  • Long-term debt down at Rs 6 billion as compared to Rs 6 billion during FY18, a fall of 3.8%.
  • Current assets rose 14% and stood at Rs 45 billion, while fixed assets rose 13% and stood at Rs 65 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 110 billion as against Rs 98 billion during FY18, thereby witnessing a growth of 13%.

GFL Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 47,659 59,758 25.4
 
Current Liabilities Rs m 29,814 34,782 16.7
Long-term Debt Rs m 5,952 5,723 -3.8
Total Liabilities Rs m 97,528 110,431 13.2
 
Current assets Rs m 39,662 45,076 13.6
Fixed Assets Rs m 57,865 65,355 12.9
Total Assets Rs m 97,528 110,431 13.2
* 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 FY19 stood at Rs 10 billion, an improvement of 4.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -10 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -794 million, an improvement of 95% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -395 million from the Rs -1 billion net cash flows seen during FY18.

GFL Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 9,518 9,956 4.6%
Cash Flow from Investing Activities Rs m 5,890 -9,557 -
Cash Flow from Financing Activities Rs m -16,681 -794 -
Net Cash Flow Rs m -1,269 -395 -
* 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 122.8, an improvement from the EPS of Rs 21.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,104.7, stands at 9.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 2.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 344.1 518.7
TTM Earnings per share Rs 21.9 122.8
Diluted earnings per share Rs 21.9 122.8
Price to Cash Flow x 15.9 6.0
TTM P/E ratio x 35.9 9.0
Price / Book Value ratio x 1.8 1.7
Market Cap Rs m 87,636 100,699
Dividends per share (Unadj.) Rs 3.5 3.5
* 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 1.3x during FY19, from 1.3x during FY18. 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 4.6x during FY19, from 2.0x during FY18. 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 22.6% during FY19, from 5.0% during FY19. 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 15.7% during FY19, from 10.4% during FY18. 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 14.2% during FY19, from 5.3% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.3 1.3
Debtors’ Days Days 1,877 1,360
Interest coverage x 2.0 4.6
Debt to equity ratio x 0.1 0.1
Return on assets % 5.3 14.2
Return on equity % 5.0 22.6
Return on capital employed % 10.4 15.7
* 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 780.6 to Rs 1,104.7, registering a gain of Rs 324.1 or around 41.5%.

Overall, the S&P BSE SENSEX is up 16.3% 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 67.9 per share. You can check out the latest share price performance of GFL here...

What was the revenue of GFL in FY19? How does it compare to earlier years?

The revenues of GFL stood at Rs 58,272 m in FY19, which was up 48.9% compared to Rs 39,129 m reported in FY18.

GFL's revenue has fallen from Rs 70,115 m in FY16 to Rs 58,272 m in FY19.

Over the past 4 years, the revenue of GFL has grown at a CAGR of -6.0%.

What was the net profit of GFL in FY19? How does it compare to earlier years?

The net profit of GFL stood at Rs 13,495 m in FY19, which was up 461.9% compared to Rs 2,401 m reported in FY18.

This compares to a net profit of Rs 2,163 m in FY17 and a net profit of Rs 6,138 m in FY16.

Over the past 4 years, GFL net profit has grown at a CAGR of 30.0%.

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 increased in FY19 and stood at Rs 9,956 m as compared to Rs 9,518 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -9,557 m as compared to Rs 5,890 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs -794 m as compared to Rs -16,681 m in FY18.

Here's the cash flow statement of GFL for the past 4 years.

(Rs m)FY16FY17FY18FY19
From Operations3,7957,3179,5189,956
From Investments-14,708-6,7445,890-9,557
From Financial Activity1,355532-16,681-794
Net Cashflow-9,5491,105-1,269-395

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 fall and down at 21.7% in FY19 as against 19.2% in FY18.
  • Net profit margins grew from 6.4% in FY18 to 23.7% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.1 as compared to 0.1 in FY18.

Here's the ratio/financial analysis of GFL for the past 4 years.

 FY16FY17FY18FY19
Operating Profit Margin (%)18.815.419.221.7
Net Profit Margin (%)8.93.56.423.7
Debt to Equity Ratio (x)0.20.30.10.1

Read: Latest Annual Report Analysis of GFL

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