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

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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

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	-

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

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

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)

Read: Latest Annual Report Analysis of GUJARAT INDUSTRIES POWER