GNA AXLES 2021-22 Annual Report Analysis

Mon, 5 Sep

GNA AXLES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

GNA AXLES Income Statement Analysis

• Operating income during the year rose 42.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 25.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.2% in FY22 as against 16.2% in FY21.
• Depreciation charges increased by 22.1% and finance costs increased by 31.4% YoY, respectively.
• Other income declined by 63.2% YoY.
• Net profit for the year grew by 25.7% YoY.
• Net profit margins during the year declined from 7.9% in FY21 to 7.0% in FY22.

GNA AXLES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	8,896	12,705	42.8%
Other income	Rs m	15	6	-63.2%
Total Revenues	Rs m	8,911	12,710	42.6%
Gross profit	Rs m	1,438	1,809	25.8%
Depreciation	Rs m	407	497	22.1%
Interest	Rs m	85	112	31.4%
Profit before tax	Rs m	961	1,206	25.5%
Tax	Rs m	254	318	25.1%
Profit after tax	Rs m	706	888	25.7%
Gross profit margin	%	16.2	14.2
Effective tax rate	%	26.5	26.4
Net profit margin	%	7.9	7.0

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GNA AXLES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 4 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 9.4%.
• Long-term debt down at Rs 473 million as compared to Rs 764 million during FY21, a fall of 38.1%.
• Current assets rose 11% and stood at Rs 7 billion, while fixed assets rose 4% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 10 billion as against Rs 10 billion during FY21, thereby witnessing a growth of 8%.

GNA AXLES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,176	5,952	15.0
Current Liabilities	Rs m	3,651	3,993	9.4
Long-term Debt	Rs m	764	473	-38.1
Total Liabilities	Rs m	9,595	10,411	8.5
Current assets	Rs m	6,441	7,145	10.9
Fixed Assets	Rs m	3,154	3,266	3.6
Total Assets	Rs m	9,595	10,411	8.5

GNA AXLES Cash Flow Statement Analysis

• GNA AXLES's cash flow from operating activities (CFO) during FY22 stood at Rs 414 million, an improvement of 24.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -459 million, an improvement of 61.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 45 million, an improvement of 197% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -1 million from the Rs 1 million net cash flows seen during FY21.

GNA AXLES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	332	414	24.7%
Cash Flow from Investing Activities	Rs m	-285	-459	-
Cash Flow from Financing Activities	Rs m	-46	45	-
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 41.3, an improvement from the EPS of Rs 32.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 748.2, stands at 18.6 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 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 11.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	414.3	591.7
TTM Earnings per share	Rs	32.9	41.3
Diluted earnings per share	Rs	32.9	41.4
Price to Cash Flow	x	6.6	11.2
TTM P/E ratio	x	10.3	18.6
Price / Book Value ratio	x	1.2	2.6
Market Cap	Rs m	6,027	15,524
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for GNA AXLES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY22, from 1.8x during FY21. 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 11.7x during FY22, from 12.2x during FY21. 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 14.9% during FY22, from 13.6% during FY22. 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 20.5% during FY22, from 17.6% during FY21. 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 9.6% during FY22, from 8.3% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.8	1.8
Debtors’ Days	Days	1,797	1,363
Interest coverage	x	12.2	11.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.3	9.6
Return on equity	%	13.6	14.9
Return on capital employed	%	17.6	20.5

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 734.3 to Rs 748.2, registering a gain of Rs 13.9 or around 1.9%.

Overall, the S&P BSE SENSEX is up 3.3% 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