GUJARAT INDUSTRIES POWER 2021-22 Annual Report Analysis

Fri, 7 Oct

GUJARAT INDUSTRIES POWER has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

GUJARAT INDUSTRIES POWER Income Statement Analysis

• Operating income during the year fell 12.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 34.6% in FY22 as against 31.8% in FY21.
• Depreciation charges decreased by 2.7% and finance costs decreased by 7.4% YoY, respectively.
• Other income declined by 30.2% YoY.
• Net profit for the year declined by 4.7% YoY.
• Net profit margins during the year grew from 13.5% in FY21 to 14.6% in FY22.

GUJARAT INDUSTRIES POWER Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	13,353	11,724	-12.2%
Other income	Rs m	303	211	-30.2%
Total Revenues	Rs m	13,656	11,935	-12.6%
Gross profit	Rs m	4,243	4,059	-4.4%
Depreciation	Rs m	1,550	1,509	-2.7%
Interest	Rs m	310	288	-7.4%
Profit before tax	Rs m	2,685	2,473	-7.9%
Tax	Rs m	887	760	-14.4%
Profit after tax	Rs m	1,798	1,713	-4.7%
Gross profit margin	%	31.8	34.6
Effective tax rate	%	33.0	30.7
Net profit margin	%	13.5	14.6

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GUJARAT INDUSTRIES POWER Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 3 billion as compared to Rs 3 billion in FY21, thereby witnessing an increase of 6.3%.
• Long-term debt stood at Rs 4 billion as compared to Rs 4 billion during FY21, a growth of 1.3%.
• Current assets rose 4% and stood at Rs 9 billion, while fixed assets rose 7% and stood at Rs 35 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 44 billion as against Rs 41 billion during FY21, thereby witnessing a growth of 7%.

GUJARAT INDUSTRIES POWER Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	28,550	30,444	6.6
Current Liabilities	Rs m	3,265	3,473	6.3
Long-term Debt	Rs m	3,947	3,999	1.3
Total Liabilities	Rs m	41,287	44,033	6.6
Current assets	Rs m	8,500	8,842	4.0
Fixed Assets	Rs m	32,787	35,190	7.3
Total Assets	Rs m	41,287	44,033	6.6

GUJARAT INDUSTRIES POWER Cash Flow Statement Analysis

• GUJARAT INDUSTRIES POWER's cash flow from operating activities (CFO) during FY22 stood at Rs 4 billion, an improvement of 87.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion, an improvement of 46.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -245 million, an improvement of 48% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -23 million from the Rs -854 million net cash flows seen during FY21.

GUJARAT INDUSTRIES POWER Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,933	3,620	87.3%
Cash Flow from Investing Activities	Rs m	-2,313	-3,398	-
Cash Flow from Financing Activities	Rs m	-474	-245	-
Net Cash Flow	Rs m	-854	-23	-

Current Valuations for GUJARAT INDUSTRIES POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.3, an decline from the EPS of Rs 11.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 88.7, stands at 6.7 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 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 4.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	88.3	77.5
TTM Earnings per share	Rs	11.9	11.3
Diluted earnings per share	Rs	11.9	11.3
Price to Cash Flow	x	3.4	4.1
TTM P/E ratio	x	6.4	6.7
Price / Book Value ratio	x	0.4	0.4
Market Cap	Rs m	10,784	13,163
Dividends per share (Unadj.)	Rs	2.7	2.5

Ratio Analysis for GUJARAT INDUSTRIES POWER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.5x during FY22, from 2.6x during FY21. 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 deteriorated and stood at 9.6x during FY22, from 9.6x during FY21. 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 5.6% during FY22, from 6.3% during FY22. 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 8.0% during FY22, from 9.2% during FY21. 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 4.5% during FY22, from 5.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.6	2.5
Debtors’ Days	Days	808	1,011
Interest coverage	x	9.6	9.6
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.1	4.5
Return on equity	%	6.3	5.6
Return on capital employed	%	9.2	8.0

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 95.3 to Rs 88.7, registering a loss of Rs 6.6 or around 6.9%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,757.5 (down 0.4%). Over the last one year it has moved up from 3,318.3 to 4,757.5, a gain of 1,439 points (up 43.4%).

Overall, the S&P BSE SENSEX is down 2.1% 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