GOLKUNDA DIAMONDS 2021-22 Annual Report Analysis

Thu, 16 Jun

GOLKUNDA DIAMONDS 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.

GOLKUNDA DIAMONDS Income Statement Analysis

• Operating income during the year rose 37.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 132.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.2% in FY22 as against 3.1% in FY21.
• Depreciation charges increased by 29.5% and finance costs increased by 28.1% YoY, respectively.
• Other income grew by 13.2% YoY.
• Net profit for the year grew by 174.0% YoY.
• Net profit margins during the year grew from 1.6% in FY21 to 3.1% in FY22.

GOLKUNDA DIAMONDS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,735	2,381	37.2%
Other income	Rs m	4	5	13.2%
Total Revenues	Rs m	1,739	2,385	37.2%
Gross profit	Rs m	53	124	132.0%
Depreciation	Rs m	5	6	29.5%
Interest	Rs m	14	18	28.1%
Profit before tax	Rs m	39	104	170.0%
Tax	Rs m	12	31	161.0%
Profit after tax	Rs m	27	74	174.0%
Gross profit margin	%	3.1	5.2
Effective tax rate	%	30.4	29.3
Net profit margin	%	1.6	3.1

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GOLKUNDA DIAMONDS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 593 million as compared to Rs 460 million in FY21, thereby witnessing an increase of 28.9%.
• Current assets rose 26% and stood at Rs 885 million, while fixed assets rose 24% and stood at Rs 86 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 971 million as against Rs 773 million during FY21, thereby witnessing a growth of 26%.

GOLKUNDA DIAMONDS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	305	371	21.3
Current Liabilities	Rs m	460	593	28.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	773	971	25.7
Current assets	Rs m	703	885	25.8
Fixed Assets	Rs m	70	86	24.2
Total Assets	Rs m	773	971	25.7

GOLKUNDA DIAMONDS Cash Flow Statement Analysis

• GOLKUNDA DIAMONDS's cash flow from operating activities (CFO) during FY22 stood at Rs -51 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -17 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 57 million, an improvement of 191% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -10 million from the Rs 13 million net cash flows seen during FY21.

GOLKUNDA DIAMONDS 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	20	-51	-
Cash Flow from Investing Activities	Rs m	-27	-17	-
Cash Flow from Financing Activities	Rs m	20	57	191.5%
Net Cash Flow	Rs m	13	-10	-

Current Valuations for GOLKUNDA DIAMONDS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.6, an improvement from the EPS of Rs 3.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 87.1, stands at 8.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 6.8 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	249.2	342.0
TTM Earnings per share	Rs	3.9	10.6
Diluted earnings per share	Rs	3.9	10.6
Price to Cash Flow	x	4.3	6.8
TTM P/E ratio	x	5.1	8.2
Price / Book Value ratio	x	0.4	1.5
Market Cap	Rs m	122	540
Dividends per share (Unadj.)	Rs	1.2	1.5

Ratio Analysis for GOLKUNDA DIAMONDS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY22, from 1.5x 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 improved and stood at 6.8x during FY22, from 3.7x 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 improved and stood at 19.9% during FY22, from 8.8% 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 improved and stood at 33.0% during FY22, from 17.3% 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 improved and stood at 9.5% during FY22, from 5.3% 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	1.5	1.5
Debtors’ Days	Days	76,679,591	83,560,592
Interest coverage	x	3.7	6.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.3	9.5
Return on equity	%	8.8	19.9
Return on capital employed	%	17.3	33.0

To see how GOLKUNDA DIAMONDS has performed over the last 5 years, please visit here.

GOLKUNDA DIAMONDS Share Price Performance

Over the last one year, GOLKUNDA DIAMONDS share price has moved up from Rs 48.0 to Rs 87.1, registering a gain of Rs 39.1 or around 81.5%.

Overall, the S&P BSE SENSEX is up 0.7% over the year.

(To know more, check out historical annual results for GOLKUNDA DIAMONDS and quarterly results for GOLKUNDA DIAMONDS)