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G.M. BREWERIES 2020-21 Annual Report Analysis
Wed, 31 Mar

G.M. BREWERIES 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.

G.M. BREWERIES Income Statement Analysis

  • Operating income during the year fell 25.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 10.8% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 13.6% in FY21 as against 11.3% in FY20.
  • Depreciation charges decreased by 24.8% and finance costs increased by 21.2% YoY, respectively.
  • Other income grew by 121.5% YoY.
  • Net profit for the year grew by 18.0% YoY.
  • Net profit margins during the year declined from 9.1% in FY20 to 14.5% in FY21.

G.M. BREWERIES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m -7,441 -5,522 -25.8%
Other income Rs m 137 303 121.5%
Total Revenues Rs m -7,304 -5,219 -28.5%
Gross profit Rs m 844 753 -10.8%
Depreciation Rs m 73 55 -24.8%
Interest Rs m 1 1 21.2%
Profit before tax Rs m 908 1,001 10.2%
Tax Rs m 229 200 -12.9%
Profit after tax Rs m 679 801 18.0%
Gross profit margin % -11.3 -13.6
Effective tax rate % 25.3 20.0
Net profit margin % -9.1 -14.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

G.M. BREWERIES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 644 million as compared to Rs 496 million in FY20, thereby witnessing an increase of 29.8%.
  • Current assets rose 52% and stood at Rs 943 million, while fixed assets rose 13% and stood at Rs 5 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 6 billion as against Rs 5 billion during FY20, thereby witnessing a growth of 18%.

G.M. BREWERIES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 4,304 5,050 17.3
 
Current Liabilities Rs m 496 644 29.8
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 4,838 5,729 18.4
 
Current assets Rs m 618 943 52.4
Fixed Assets Rs m 4,220 4,787 13.4
Total Assets Rs m 4,838 5,729 18.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



G.M. BREWERIES Cash Flow Statement Analysis

  • G.M. BREWERIES's cash flow from operating activities (CFO) during FY21 stood at Rs 14 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 101 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -55 million, an improvement of 17% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 60 million from the Rs -2 million net cash flows seen during FY20.

G.M. BREWERIES 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 788 14 -98.2%
Cash Flow from Investing Activities Rs m -723 101 -
Cash Flow from Financing Activities Rs m -67 -55 -
Net Cash Flow Rs m -2 60 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for G.M. BREWERIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 43.8, an improvement from the EPS of Rs 37.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 416.0, stands at 9.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at -1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 8.4 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 -407.1 -302.1
TTM Earnings per share Rs 37.1 43.8
Diluted earnings per share Rs 37.1 43.8
Price to Cash Flow x 7.5 8.4
TTM P/E ratio x 8.3 9.5
Price / Book Value ratio x 1.9 1.4
Market Cap Rs m 8,261 7,176
Dividends per share (Unadj.) Rs 3.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for G.M. BREWERIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x during FY21, from 1.2x 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 deteriorated and stood at 1,589.2x during FY21, from 1,746.8x 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 improved and stood at 15.9% during FY21, from 15.8% 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 19.8% during FY21, from 21.1% 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 14.0% during FY21, from 14.0% 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 1.2 1.5
Debtors’ Days Days -5 -6
Interest coverage x 1,746.8 1,589.2
Debt to equity ratio x 0.0 0.0
Return on assets % 14.0 14.0
Return on equity % 15.8 15.9
Return on capital employed % 21.1 19.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how G.M. BREWERIES has performed over the last 5 years, please visit here.

G.M. BREWERIES Share Price Performance

Over the last one year, G.M. BREWERIES share price has moved up from Rs 309.1 to Rs 416.0, registering a gain of Rs 106.9 or around 34.6%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for G.M. BREWERIES and quarterly results for G.M. BREWERIES)

Annual Report FAQs

What is the current share price of G.M. BREWERIES?

G.M. BREWERIES currently trades at Rs 633.3 per share. You can check out the latest share price performance of G.M. BREWERIES here...

What was the revenue of G.M. BREWERIES in FY21? How does it compare to earlier years?

The revenues of G.M. BREWERIES stood at Rs -5,219 m in FY21, which was down -28.5% compared to Rs -7,304 m reported in FY20.

G.M. BREWERIES' revenue has fallen from Rs 1,427 m in FY17 to Rs -5,219 m in FY21.

Over the past 5 years, the revenue of G.M. BREWERIES has grown at a CAGR of NaN%.

What was the net profit of G.M. BREWERIES in FY21? How does it compare to earlier years?

The net profit of G.M. BREWERIES stood at Rs 801 m in FY21, which was up 18.0% compared to Rs 679 m reported in FY20.

This compares to a net profit of Rs 823 m in FY19 and a net profit of Rs 729 m in FY18.

Over the past 5 years, G.M. BREWERIES net profit has grown at a CAGR of 16.4%.

What does the cash flow statement of G.M. BREWERIES 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 G.M. BREWERIES reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 14 m as compared to Rs 788 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 101 m as compared to Rs -723 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -55 m as compared to Rs -67 m in FY20.

Here's the cash flow statement of G.M. BREWERIES for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations52962961378814
From Investments-503-613-575-723101
From Financial Activity-37-53-54-67-55
Net Cashflow-12-37-15-260

What does the Key Ratio analysis of G.M. BREWERIES 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 G.M. BREWERIES reveals:

  • Operating profit margins witnessed a growth and stood at 13.6% in FY21 as against 11.3% in FY20.
  • Net profit margins declined from 9.1% in FY20 to 14.5% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of G.M. BREWERIES for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)49.7-14.3-15.0-11.3-13.6
Net Profit Margin (%)31.5-9.7-10.6-9.1-14.5
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of G.M. BREWERIES

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