GMM PFAUDLER 2020-21 Annual Report Analysis

Wed, 31 Mar

GMM PFAUDLER 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.

GMM PFAUDLER Income Statement Analysis

• Operating income during the year rose 69.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.5% in FY21 as against 18.8% in FY20.
• Depreciation charges increased by 139.4% and finance costs increased by 191.7% YoY, respectively.
• Other income grew by 307.8% YoY.
• Net profit for the year declined by 10.9% YoY.
• Net profit margins during the year declined from 12.0% in FY20 to 6.3% in FY21.

GMM PFAUDLER Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	5,911	10,011	69.4%
Other income	Rs m	58	235	307.8%
Total Revenues	Rs m	5,968	10,246	71.7%
Gross profit	Rs m	1,111	1,051	-5.4%
Depreciation	Rs m	211	506	139.4%
Interest	Rs m	35	102	191.7%
Profit before tax	Rs m	923	679	-26.5%
Tax	Rs m	212	45	-78.9%
Profit after tax	Rs m	711	634	-10.9%
Gross profit margin	%	18.8	10.5
Effective tax rate	%	22.9	6.6
Net profit margin	%	12.0	6.3

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GMM PFAUDLER Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 9 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 446.8%.
• Long-term debt stood at Rs 4 billion as compared to Rs 0 million during FY20, a fall of 0.0%.
• Current assets rose 266% and stood at Rs 14 billion, while fixed assets rose 444% and stood at Rs 11 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 25 billion as against Rs 6 billion during FY20, thereby witnessing a growth of 325%.

GMM PFAUDLER Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,291	4,071	23.7
Current Liabilities	Rs m	1,645	8,993	446.8
Long-term Debt	Rs m	0	4,428	0.0
Total Liabilities	Rs m	5,832	24,791	325.1
Current assets	Rs m	3,899	14,278	266.2
Fixed Assets	Rs m	1,932	10,512	444.1
Total Assets	Rs m	5,832	24,791	325.1

GMM PFAUDLER Cash Flow Statement Analysis

• GMM PFAUDLER's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 486.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -659 million, an improvement of 32.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 1 billion, an improvement of 2,362% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs -276 million net cash flows seen during FY20.

GMM PFAUDLER 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	267	1,567	486.8%
Cash Flow from Investing Activities	Rs m	-497	-659	-
Cash Flow from Financing Activities	Rs m	-46	1,049	-
Net Cash Flow	Rs m	-276	1,957	-

Current Valuations for GMM PFAUDLER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 43.4, an decline from the EPS of Rs 48.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,305.2, stands at 99.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.5 times, while the price to sales ratio stands at 6.3 times.
• The company's price to cash flow (P/CF) ratio stood at 59.6 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	404.3	684.8
TTM Earnings per share	Rs	48.7	43.4
Diluted earnings per share	Rs	48.7	43.4
Price to Cash Flow	x	39.8	59.6
TTM P/E ratio	x	51.7	99.3
Price / Book Value ratio	x	10.1	16.7
Market Cap	Rs m	33,338	67,886
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for GMM PFAUDLER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY21, from 2.4x 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 7.7x during FY21, from 27.4x 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 15.6% during FY21, from 21.6% 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 9.2% during FY21, from 29.1% 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 3.0% during FY21, from 12.8% 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	2.4	1.6
Debtors’ Days	Days	46	113
Interest coverage	x	27.4	7.7
Debt to equity ratio	x	0.0	1.1
Return on assets	%	12.8	3.0
Return on equity	%	21.6	15.6
Return on capital employed	%	29.1	9.2

To see how GMM PFAUDLER has performed over the last 5 years, please visit here.

GMM PFAUDLER Share Price Performance

Over the last one year, GMM PFAUDLER share price has moved up from Rs 2,513.9 to Rs 4,305.2, registering a gain of Rs 1,791.3 or around 71.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

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

(To know more, check out historical annual results for GMM PFAUDLER and quarterly results for GMM PFAUDLER)

Read: Latest Annual Report Analysis of GMM PFAUDLER