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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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)

Annual Report FAQs

What is the current share price of GNA AXLES?

GNA AXLES currently trades at Rs 631.6 per share. You can check out the latest share price performance of GNA AXLES here...

What was the revenue of GNA AXLES in FY21? How does it compare to earlier years?

The revenues of GNA AXLES stood at Rs 8,911 m in FY21, which was down -2.1% compared to Rs 9,103 m reported in FY20.

GNA AXLES' revenue has grown from Rs 4,884 m in FY17 to Rs 8,911 m in FY21.

Over the past 5 years, the revenue of GNA AXLES has grown at a CAGR of 16.2%.

What was the net profit of GNA AXLES in FY21? How does it compare to earlier years?

The net profit of GNA AXLES stood at Rs 706 m in FY21, which was up 33.9% compared to Rs 527 m reported in FY20.

This compares to a net profit of Rs 658 m in FY19 and a net profit of Rs 509 m in FY18.

Over the past 5 years, GNA AXLES net profit has grown at a CAGR of 24.3%.

What does the cash flow statement of GNA AXLES 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 GNA AXLES reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 314 m as compared to Rs 1,188 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -268 m as compared to Rs -1,229 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -46 m as compared to Rs 40 m in FY20.

Here's the cash flow statement of GNA AXLES for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations-9035977221,188314
From Investments-80-784-881-1,229-268
From Financial Activity98018715940-46
Net Cashflow-31-1-11

What does the Key Ratio analysis of GNA AXLES 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 GNA AXLES reveals:

  • Operating profit margins witnessed a fall and down at 16.2% in FY21 as against 13.7% in FY20.
  • Net profit margins grew from 5.8% in FY20 to 7.9% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.1 as compared to 0.2 in FY20.

Here's the ratio/financial analysis of GNA AXLES for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)16.615.515.513.716.2
Net Profit Margin (%)6.17.77.05.87.9
Debt to Equity Ratio (x)0.10.10.20.20.1

Read: Latest Annual Report Analysis of GNA AXLES

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