GUJARAT INDUSTRIES POWER 2017-18 Annual Report Analysis

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GUJARAT INDUSTRIES POWER 2017-18 Annual Report Analysis
Tue, 26 Mar

GUJARAT INDUSTRIES POWER has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

GUJARAT INDUSTRIES POWER Income Statement Analysis

  • Operating income during the year rose 4.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 14.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 36.0% in FY18 as against 32.7% in FY17.
  • Depreciation charges increased by 25.3% and finance costs decreased by 8.5% YoY, respectively.
  • Other income declined by 27.9% YoY.
  • Net profit for the year grew by 6.7% YoY.
  • Net profit margins during the year grew from 16.6% in FY17 to 17.3% in FY18.

GUJARAT INDUSTRIES POWER Income Statement 2017-18

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
Net SalesRs m13,10613,6394.1%
Other incomeRs m711513-27.9%
Total RevenuesRs m13,81614,1522.4%
Gross profitRs m4,2904,90914.4%
DepreciationRs m1,2591,57725.3%
InterestRs m732670-8.5%
Profit before taxRs m3,0103,1755.5%
TaxRs m7177301.7%
Profit after taxRs m2,2932,4456.7%
Gross profit margin%32.736.0
Effective tax rate%23.823.0
Net profit margin%16.617.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GUJARAT INDUSTRIES POWER Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 5 billion as compared to Rs 5 billion in FY17, thereby witnessing an increase of 3.7%.
  • Long-term debt stood at Rs 4 billion as compared to Rs 3 billion during FY17, a growth of 33.1%.
  • Current assets rose 26% and stood at Rs 5 billion, while fixed assets rose 5% and stood at Rs 27 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 37 billion as against Rs 34 billion during FY17, thereby witnessing a growth of 9%.

GUJARAT INDUSTRIES POWER Balance Sheet as on March 2018

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
NetworthRs m22,36123,8076.5
 
Current LiabilitiesRs m5,0505,2353.7
Long-term DebtRs m2,7153,61333.1
Total LiabilitiesRs m34,14437,0748.6
 
Current assetsRs m4,2895,39325.8
Fixed AssetsRs m 25,40626,7955.5
Total AssetsRs m34,14437,0748.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GUJARAT INDUSTRIES POWER Cash Flow Statement Analysis

  • GUJARAT INDUSTRIES POWER's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 924 million, an improvement of 157% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 507 million from the Rs -2 billion net cash flows seen during FY17.

GUJARAT INDUSTRIES POWER Cash Flow Statement 2017-18

ParticularsNo. of months1212% Change
Year EndingMar-17Mar-18
Cash Flow from Operating ActivitiesRs m4,3273,411-21.2%
Cash Flow from Investing ActivitiesRs m-4,588-3,828-
Cash Flow from Financing ActivitiesRs m-1,613924-
Net Cash FlowRs m-1,874507-
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for GUJARAT INDUSTRIES POWER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.2, an improvement from the EPS of Rs 15.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 70.0, stands at 12.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 2.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Sales per share (Unadj.)Rs86.690.2
TTM Earnings per shareRs15.216.2
Diluted earnings per shareRs15.216.2
Price to Cash Flow x3.02.6
TTM P/E ratiox12.812.8
Price / Book Value ratiox0.70.8
Market CapRs m10,58010,580
Dividends per share (Unadj.)Rs2.72.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for GUJARAT INDUSTRIES POWER

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY18, from 0.8x during FY17. 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 5.7x during FY18, from 5.1x during FY17. 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 10.3% during FY18, from 10.3% during FY18. 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 14.0% during FY18, from 14.9% during FY17. 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 8.4% during FY18, from 8.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Current ratiox0.81.0
Debtors’ DaysDays6970
Interest coveragex5.15.7
Debt to equity ratiox0.10.2
Return on assets%8.98.4
Return on equity%10.310.3
Return on capital employed%14.914.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how GUJARAT INDUSTRIES POWER has performed over the last 5 years, please visit here.

GUJARAT INDUSTRIES POWER Share Price Performance

Over the last one year, GUJARAT INDUSTRIES POWER share price has moved up from Rs 97.0 to Rs 70.0, registering a loss of Rs 27.1 or around 27.9%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,030.1 (up 1.0%). Over the last one year it has moved down from 2,133.3 to 2,030.1, a loss of 103 points (down 4.8%).

(To know more, check out historical annual results for GUJARAT INDUSTRIES POWER and quarterly results for GUJARAT INDUSTRIES POWER)

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