GUJARAT INDUSTRIES POWER 2020-21 Annual Report Analysis

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GUJARAT INDUSTRIES POWER 2020-21 Annual Report Analysis
Mon, 1 Nov

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 17.5% in FY20 to 13.4% 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 % 17.5 13.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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 87.6, stands at 8.4 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 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.8 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 3.0 3.8
TTM P/E ratio x 8.4 8.4
Price / Book Value ratio x 0.4 0.4
Market Cap Rs m 13,242 13,242
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 68.0 to Rs 87.6, registering a gain of Rs 19.6 or around 28.8%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 3,387.4 (up 1.5%). Over the last one year it has moved up from 1,729.4 to 3,387.4, a gain of 1,658 points (up 95.9%).

Overall, the S&P BSE SENSEX is up 50.6% over the year.

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

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