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

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  


GUJARAT INDUSTRIES POWER 2020-21 Annual Report Analysis
Wed, 31 Mar

GUJARAT INDUSTRIES POWER has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

GUJARAT INDUSTRIES POWER Income Statement Analysis

  • Operating income during the year fell 3.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 11.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 33.4% in FY21 as against 36.6% in FY20.
  • Depreciation charges decreased by 15.2% and finance costs decreased by 16.8% YoY, respectively.
  • Other income declined by 27.7% YoY.
  • Net profit for the year declined by 26.1% YoY.
  • Net profit margins during the year declined from 18.0% in FY20 to 13.7% in FY21.

GUJARAT INDUSTRIES POWER Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 13,788 13,353 -3.2%
Other income Rs m 419 303 -27.7%
Total Revenues Rs m 14,207 13,656 -3.9%
Gross profit Rs m 5,050 4,458 -11.7%
Depreciation Rs m 1,908 1,619 -15.2%
Interest Rs m 507 422 -16.8%
Profit before tax Rs m 3,054 2,720 -10.9%
Tax Rs m 574 887 54.6%
Profit after tax Rs m 2,480 1,833 -26.1%
Gross profit margin % 36.6 33.4
Effective tax rate % 18.8 32.6
Net profit margin % 18.0 13.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

GUJARAT INDUSTRIES POWER Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 32.3%.
  • Long-term debt stood at Rs 4 billion as compared to Rs 4 billion during FY20, a growth of 2.9%.
  • Current assets rose 10% and stood at Rs 9 billion, while fixed assets rose 7% and stood at Rs 34 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 42 billion as against Rs 39 billion during FY20, thereby witnessing a growth of 8%.

GUJARAT INDUSTRIES POWER Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 27,481 29,111 5.9
 
Current Liabilities Rs m 2,567 3,396 32.3
Long-term Debt Rs m 3,836 3,947 2.9
Total Liabilities Rs m 39,298 42,257 7.5
 
Current assets Rs m 7,715 8,500 10.2
Fixed Assets Rs m 31,583 33,757 6.9
Total Assets Rs m 39,298 42,257 7.5
* 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 FY21 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 104.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -474 million, an improvement of 79% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -854 million from the Rs 1 billion net cash flows seen during FY20.

GUJARAT INDUSTRIES POWER Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 4,446 1,933 -56.5%
Cash Flow from Investing Activities Rs m -1,133 -2,313 -
Cash Flow from Financing Activities Rs m -2,219 -474 -
Net Cash Flow Rs m 1,094 -854 -
* 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 12.1, an decline from the EPS of Rs 16.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 75.7, stands at 6.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 91.2 88.3
TTM Earnings per share Rs 16.4 12.1
Diluted earnings per share Rs 16.4 12.1
Price to Cash Flow x 1.7 3.1
TTM P/E ratio x 3.1 6.4
Price / Book Value ratio x 0.4 0.4
Market Cap Rs m 9,794 10,784
Dividends per share (Unadj.) Rs 2.9 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 deteriorated and stood at 2.5x during FY21, from 3.0x during FY20. 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 7.4x during FY21, from 7.0x during FY20. 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 declined and down at 6.3% during FY21, from 9.0% during FY21. 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 9.5% during FY21, from 11.4% during FY20. 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 5.3% during FY21, from 7.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 3.0 2.5
Debtors’ Days Days 510 808
Interest coverage x 7.0 7.4
Debt to equity ratio x 0.1 0.1
Return on assets % 7.6 5.3
Return on equity % 9.0 6.3
Return on capital employed % 11.4 9.5
* 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 up from Rs 50.1 to Rs 75.7, registering a gain of Rs 25.6 or around 51.1%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,475.1 (down 1.4%). Over the last one year it has moved up from 1,378.0 to 2,475.1, a gain of 1,097 points (up 79.6%).

Overall, the S&P BSE SENSEX is up 74.1% 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 163.2 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 FY21? How does it compare to earlier years?

The revenues of GUJARAT INDUSTRIES POWER stood at Rs 13,656 m in FY21, which was down -3.9% compared to Rs 14,207 m reported in FY20.

GUJARAT INDUSTRIES POWER's revenue has fallen from Rs 13,816 m in FY17 to Rs 13,656 m in FY21.

Over the past 5 years, the revenue of GUJARAT INDUSTRIES POWER has grown at a CAGR of -0.3%.

What was the net profit of GUJARAT INDUSTRIES POWER in FY21? How does it compare to earlier years?

The net profit of GUJARAT INDUSTRIES POWER stood at Rs 1,833 m in FY21, which was down -26.1% compared to Rs 2,480 m reported in FY20.

This compares to a net profit of Rs 2,548 m in FY19 and a net profit of Rs 2,445 m in FY18.

Over the past 5 years, GUJARAT INDUSTRIES POWER net profit has grown at a CAGR of -5.4%.

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 FY21 and stood at Rs 1,933 m as compared to Rs 4,446 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -2,313 m as compared to Rs -1,133 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -474 m as compared to Rs -2,219 m in FY20.

Here's the cash flow statement of GUJARAT INDUSTRIES POWER for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations4,3273,3105,8194,4461,933
From Investments-4,588-3,828-2,312-1,133-2,313
From Financial Activity-1,6131,025-1,423-2,219-474
Net Cashflow-1,8745072,0841,094-854

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 stood at 33.4% in FY21 as against 36.6% in FY20.
  • Net profit margins declined from 18.0% in FY20 to 13.7% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.1 as compared to 0.1 in FY20.

Here's the ratio/financial analysis of GUJARAT INDUSTRIES POWER for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)32.735.529.036.633.4
Net Profit Margin (%)17.518.118.118.013.7
Debt to Equity Ratio (x)0.10.20.10.10.1

Read: Latest Annual Report Analysis of GUJARAT INDUSTRIES POWER

 

Equitymaster requests your view! Post a comment on "GUJARAT INDUSTRIES POWER 2020-21 Annual Report Analysis". Click here!