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GMR INFRA 2017-18 Annual Report Analysis
Sat, 31 Mar

GMR INFRA has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

GMR INFRA Income Statement Analysis

  • Operating income during the year rose 8.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 61.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.6% in FY18 as against 70.0% in FY17.
  • Depreciation charges decreased by 32.0% and finance costs decreased by 41.3% YoY, respectively.
  • Other income declined by 8.2% YoY.
  • Net profit for the year declined by 2815.5% YoY.
  • Net profit margins during the year declined from 0.3% in FY17 to 7.8% in FY18.

GMR INFRA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 80,348 87,212 8.5%
Other income Rs m 6,392 5,870 -8.2%
Total Revenues Rs m 86,740 93,082 7.3%
Gross profit Rs m 56,270 21,451 -61.9%
Depreciation Rs m 15,434 10,491 -32.0%
Interest Rs m 39,538 23,207 -41.3%
Profit before tax Rs m 7,689 -6,378 -182.9%
Tax Rs m 7,437 455 -93.9%
Profit after tax Rs m 252 -6,832 -2,815.5%
Gross profit margin % 70.0 24.6
Effective tax rate % 96.7 -7.1
Net profit margin % 0.3 -7.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

GMR INFRA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 90 billion as compared to Rs 77 billion in FY17, thereby witnessing an increase of 17.9%.
  • Long-term debt stood at Rs 206 billion as compared to Rs 190 billion during FY17, a growth of 8.4%.
  • Current assets rose 22% and stood at Rs 103 billion, while fixed assets fell 3% and stood at Rs 276 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 379 billion as against Rs 369 billion during FY17, thereby witnessing a growth of 3%.

GMR INFRA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 53,423 38,183 -28.5
 
Current Liabilities Rs m 76,723 90,431 17.9
Long-term Debt Rs m 189,597 205,530 8.4
Total Liabilities Rs m 368,522 378,981 2.8
 
Current assets Rs m 84,502 103,032 21.9
Fixed Assets Rs m 284,020 275,948 -2.8
Total Assets Rs m 368,522 378,981 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



GMR INFRA Cash Flow Statement Analysis

  • GMR INFRA's cash flow from operating activities (CFO) during FY18 stood at Rs 23 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -12 billion, an improvement of 79% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 2 billion from the Rs 3 billion net cash flows seen during FY17.

GMR INFRA Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 45,043 23,472 -47.9%
Cash Flow from Investing Activities Rs m 17,927 -10,142 -
Cash Flow from Financing Activities Rs m -57,268 -11,912 -
Net Cash Flow Rs m 2,630 1,940 -26.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GMR INFRA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.1, an decline from the EPS of Rs 0.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 17.0, stands at -15.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 32.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 13.3 14.4
TTM Earnings per share Rs 0.0 -1.1
Diluted earnings per share Rs 0.0 -1.1
Price to Cash Flow x 6.2 32.3
TTM P/E ratio x -2.6 -15.5
Price / Book Value ratio x 1.6 3.1
Market Cap Rs m 83,447 118,305
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GMR INFRA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 1.1x during FY17. 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 0.7x during FY18, from 1.2x during FY17. 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 -17.9% during FY18, from 0.5% during FY18. 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 6.9% during FY18, from 19.4% during FY17. 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 4.3% during FY18, from 10.8% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.1 1.1
Debtors’ Days Days 8 7
Interest coverage x 1.2 0.7
Debt to equity ratio x 3.5 5.4
Return on assets % 10.8 4.3
Return on equity % 0.5 -17.9
Return on capital employed % 19.4 6.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how GMR INFRA has performed over the last 5 years, please visit here.

GMR INFRA Share Price Performance

Over the last one year, GMR INFRA share price has moved up from Rs 16.0 to Rs 17.0, registering a gain of Rs 1.0 or around 6.3%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for GMR INFRA and quarterly results for GMR INFRA)

Annual Report FAQs

What is the current share price of GMR INFRA?

GMR INFRA currently trades at Rs 81.6 per share. You can check out the latest share price performance of GMR INFRA here...

What was the revenue of GMR INFRA in FY18? How does it compare to earlier years?

The revenues of GMR INFRA stood at Rs 93,082 m in FY18, which was up 7.3% compared to Rs 86,740 m reported in FY17.

GMR INFRA's revenue has grown from Rs 90,254 m in FY14 to Rs 93,082 m in FY18.

Over the past 5 years, the revenue of GMR INFRA has grown at a CAGR of 0.8%.

What was the net profit of GMR INFRA in FY18? How does it compare to earlier years?

The net loss of GMR INFRA stood at Rs -6,832 m in FY18, which was down -2,815.5% compared to Rs 252 m reported in FY17.

This compares to a net loss of Rs -26,644 m in FY16 and a net loss of Rs -29,592 m in FY15.

Over the past 5 years, GMR INFRA net profit has grown at a CAGR of NaN%.

What does the cash flow statement of GMR INFRA 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 GMR INFRA reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 23,472 m as compared to Rs 45,043 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -10,142 m as compared to Rs 17,927 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -11,912 m as compared to Rs -57,268 m in FY17.

Here's the cash flow statement of GMR INFRA for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations25,90129,14834,97945,04323,472
From Investments-54,217-31,645-16,67617,927-10,142
From Financial Activity6,3364,483-20,180-57,268-11,912
Net Cashflow-22,8882,038-1,8042,6301,940

What does the Key Ratio analysis of GMR INFRA 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 GMR INFRA reveals:

  • Operating profit margins witnessed a fall and stood at 24.6% in FY18 as against 70.0% in FY17.
  • Net profit margins declined from 0.3% in FY17 to 7.8% in FY18.
  • Debt to Equity ratio for FY18 stood at 5.4 as compared to 3.5 in FY17.

Here's the ratio/financial analysis of GMR INFRA for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)50.424.935.470.024.6
Net Profit Margin (%)1.2-32.8-32.20.3-7.8
Debt to Equity Ratio (x)3.85.66.53.55.4

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