Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Only For Our Loyal Equitymaster Members
A Special Gift on Hidden
Treasure's 15th Anniversary


Claim Your Exclusive Gift Now

AD

GUJARAT INDUSTRIES POWER 2017-18 Annual Report Analysis
Sat, 31 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 3.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 35.5% in FY18 as against 32.7% in FY17.
  • Depreciation charges increased by 25.3% and finance costs decreased by 22.3% 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 17.5% in FY17 to 18.1% in FY18.

GUJARAT INDUSTRIES POWER Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 13,106 13,538 3.3%
Other income Rs m 711 513 -27.9%
Total Revenues Rs m 13,816 14,051 1.7%
Gross profit Rs m 4,290 4,807 12.1%
Depreciation Rs m 1,259 1,577 25.3%
Interest Rs m 732 569 -22.3%
Profit before tax Rs m 3,010 3,175 5.5%
Tax Rs m 717 730 1.7%
Profit after tax Rs m 2,293 2,445 6.7%
Gross profit margin % 32.7 35.5
Effective tax rate % 23.8 23.0
Net profit margin % 17.5 18.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 6% and stood at Rs 32 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 Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 22,361 23,807 6.5
 
Current Liabilities Rs m 5,050 5,235 3.7
Long-term Debt Rs m 2,715 3,613 33.1
Total Liabilities Rs m 34,144 37,074 8.6
 
Current assets Rs m 4,289 5,393 25.8
Fixed Assets Rs m 29,855 31,681 6.1
Total Assets Rs m 34,144 37,074 8.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 1 billion, an improvement of 164% 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

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 4,327 3,310 -23.5%
Cash Flow from Investing Activities Rs m -4,588 -3,828 -
Cash Flow from Financing Activities Rs m -1,613 1,025 -
Net Cash Flow Rs m -1,874 507 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 97.1, stands at 6.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 86.6 89.5
TTM Earnings per share Rs 15.2 16.2
Diluted earnings per share Rs 15.2 16.2
Price to Cash Flow x 4.4 4.6
TTM P/E ratio x 6.8 6.0
Price / Book Value ratio x 0.7 0.8
Market Cap Rs m 14,762 18,664
Dividends per share (Unadj.) Rs 2.7 2.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 6.6x 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 13.7% 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 8.1% 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 Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.8 1.0
Debtors’ Days Days 691 701
Interest coverage x 5.1 6.6
Debt to equity ratio x 0.1 0.2
Return on assets % 8.9 8.1
Return on equity % 10.3 10.3
Return on capital employed % 14.9 13.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 down from Rs 103.6 to Rs 97.1, registering a loss of Rs 6.5 or around 6.3%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,125.8 (down 1.1%). Over the last one year it has moved down from 2,274.4 to 2,125.8, a loss of 149 points (down 6.5%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Annual Report FAQs

What is the current share price of GUJARAT INDUSTRIES POWER?

GUJARAT INDUSTRIES POWER currently trades at Rs 0.0 per share. You can check out the latest share price performance of GUJARAT INDUSTRIES POWER here...

What was the revenue of GUJARAT INDUSTRIES POWER in FY18? How does it compare to earlier years?

The revenues of GUJARAT INDUSTRIES POWER stood at Rs 14,051 m in FY18, which was up 1.7% compared to Rs 13,816 m reported in FY17.

GUJARAT INDUSTRIES POWER's revenue has grown from Rs 12,579 m in FY15 to Rs 14,051 m in FY18.

Over the past 4 years, the revenue of GUJARAT INDUSTRIES POWER has grown at a CAGR of 3.8%.

What was the net profit of GUJARAT INDUSTRIES POWER in FY18? How does it compare to earlier years?

The net profit of GUJARAT INDUSTRIES POWER stood at Rs 2,445 m in FY18, which was up 6.7% compared to Rs 2,293 m reported in FY17.

This compares to a net profit of Rs 1,883 m in FY16 and a net profit of Rs 1,264 m in FY15.

Over the past 4 years, GUJARAT INDUSTRIES POWER net profit has grown at a CAGR of 24.6%.

What does the cash flow statement of GUJARAT INDUSTRIES POWER 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 GUJARAT INDUSTRIES POWER reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 3,310 m as compared to Rs 4,327 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -3,828 m as compared to Rs -4,588 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs 1,025 m as compared to Rs -1,613 m in FY17.

Here's the cash flow statement of GUJARAT INDUSTRIES POWER for the past 4 years.

(Rs m)FY15FY16FY17FY18
From Operations3,4192,3194,3273,310
From Investments-613-1,776-4,588-3,828
From Financial Activity-2,304-2,279-1,6131,025
Net Cashflow502-1,735-1,874507

What does the Key Ratio analysis of GUJARAT INDUSTRIES POWER 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 GUJARAT INDUSTRIES POWER reveals:

  • Operating profit margins witnessed a fall and down at 35.5% in FY18 as against 32.7% in FY17.
  • Net profit margins grew from 17.5% in FY17 to 18.1% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.2 as compared to 0.1 in FY17.

Here's the ratio/financial analysis of GUJARAT INDUSTRIES POWER for the past 4 years.

 FY15FY16FY17FY18
Operating Profit Margin (%)33.329.732.735.5
Net Profit Margin (%)10.413.917.518.1
Debt to Equity Ratio (x)0.20.20.10.2

Read: Latest Annual Report Analysis of GUJARAT INDUSTRIES POWER

 

Equitymaster requests your view! Post a comment on "GUJARAT INDUSTRIES POWER 2017-18 Annual Report Analysis". Click here!