GNA AXLES 2020-21 Annual Report Analysis

Wed, 31 Mar

GNA AXLES 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.

GNA AXLES Income Statement Analysis

• Operating income during the year fell 2.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.2% in FY21 as against 13.7% in FY20.
• Depreciation charges decreased by 3.9% and finance costs decreased by 37.1% YoY, respectively.
• Other income grew by 17.0% YoY.
• Net profit for the year grew by 33.9% YoY.
• Net profit margins during the year grew from 5.8% in FY20 to 7.9% in FY21.

GNA AXLES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	9,090	8,896	-2.1%
Other income	Rs m	13	15	17.0%
Total Revenues	Rs m	9,103	8,911	-2.1%
Gross profit	Rs m	1,245	1,438	15.5%
Depreciation	Rs m	424	407	-3.9%
Interest	Rs m	136	85	-37.1%
Profit before tax	Rs m	698	961	37.6%
Tax	Rs m	171	254	48.8%
Profit after tax	Rs m	527	706	33.9%
Gross profit margin	%	13.7	16.2
Effective tax rate	%	24.5	26.5
Net profit margin	%	5.8	7.9

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GNA AXLES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 36.2%.
• Long-term debt down at Rs 764 million as compared to Rs 1 billion during FY20, a fall of 27.5%.
• Current assets rose 30% and stood at Rs 6 billion, while fixed assets fell 3% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 10 billion as against Rs 8 billion during FY20, thereby witnessing a growth of 17%.

GNA AXLES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,468	5,176	15.8
Current Liabilities	Rs m	2,681	3,651	36.2
Long-term Debt	Rs m	1,054	764	-27.5
Total Liabilities	Rs m	8,208	9,595	16.9
Current assets	Rs m	4,954	6,441	30.0
Fixed Assets	Rs m	3,254	3,154	-3.1
Total Assets	Rs m	8,208	9,595	16.9

GNA AXLES Cash Flow Statement Analysis

• GNA AXLES's cash flow from operating activities (CFO) during FY21 stood at Rs 314 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -268 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -46 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 1 million from the Rs -1 million net cash flows seen during FY20.

GNA AXLES 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	1,188	314	-73.5%
Cash Flow from Investing Activities	Rs m	-1,229	-268	-
Cash Flow from Financing Activities	Rs m	40	-46	-
Net Cash Flow	Rs m	-1	1	-

Current Valuations for GNA AXLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.9, an improvement from the EPS of Rs 24.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 340.3, stands at 10.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 5.4 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	423.4	414.3
TTM Earnings per share	Rs	24.6	32.9
Diluted earnings per share	Rs	24.6	32.9
Price to Cash Flow	x	3.2	5.4
TTM P/E ratio	x	5.7	10.3
Price / Book Value ratio	x	1.2	1.2
Market Cap	Rs m	5,169	6,027
Dividends per share (Unadj.)	Rs	0.0	5.0

Ratio Analysis for GNA AXLES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY21, from 1.8x 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 improved and stood at 12.2x during FY21, from 6.1x 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 13.6% during FY21, from 11.8% 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 improved and stood at 17.6% during FY21, from 15.1% 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 improved and stood at 8.3% during FY21, from 8.1% 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	1.8	1.8
Debtors’ Days	Days	1,190	1,797
Interest coverage	x	6.1	12.2
Debt to equity ratio	x	0.2	0.1
Return on assets	%	8.1	8.3
Return on equity	%	11.8	13.6
Return on capital employed	%	15.1	17.6

To see how GNA AXLES has performed over the last 5 years, please visit here.

GNA AXLES Share Price Performance

Over the last one year, GNA AXLES share price has moved up from Rs 140.1 to Rs 340.3, registering a gain of Rs 200.2 or around 142.9%.

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

(To know more, check out historical annual results for GNA AXLES and quarterly results for GNA AXLES)

Read: Latest Annual Report Analysis of GNA AXLES