GENUS POWER 2020-21 Annual Report Analysis

Wed, 31 Mar

GENUS POWER 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.

GENUS POWER Income Statement Analysis

• Operating income during the year fell 42.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 34.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.7% in FY21 as against 14.7% in FY20.
• Depreciation charges decreased by 1.8% and finance costs decreased by 25.1% YoY, respectively.
• Other income grew by 181.0% YoY.
• Net profit for the year declined by 5.1% YoY.
• Net profit margins during the year grew from 6.9% in FY20 to 11.5% in FY21.

GENUS POWER Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	10,604	6,086	-42.6%
Other income	Rs m	161	453	181.0%
Total Revenues	Rs m	10,765	6,539	-39.3%
Gross profit	Rs m	1,555	1,019	-34.5%
Depreciation	Rs m	221	218	-1.8%
Interest	Rs m	327	245	-25.1%
Profit before tax	Rs m	1,168	1,010	-13.5%
Tax	Rs m	433	313	-27.8%
Profit after tax	Rs m	735	697	-5.1%
Gross profit margin	%	14.7	16.7
Effective tax rate	%	37.1	31.0
Net profit margin	%	6.9	11.5

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GENUS POWER Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 4 billion as compared to Rs 5 billion in FY20, thereby witnessing an decrease of -15.7%.
• Long-term debt down at Rs 75 million as compared to Rs 233 million during FY20, a fall of 67.7%.
• Current assets rose 2% and stood at Rs 11 billion, while fixed assets fell 8% and stood at Rs 3 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 14 billion as against Rs 14 billion during FY20, thereby witnessing a fall of 1%.

GENUS POWER Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	8,371	9,031	7.9
Current Liabilities	Rs m	4,800	4,048	-15.7
Long-term Debt	Rs m	233	75	-67.7
Total Liabilities	Rs m	13,720	13,624	-0.7
Current assets	Rs m	10,423	10,581	1.5
Fixed Assets	Rs m	3,297	3,043	-7.7
Total Assets	Rs m	13,720	13,624	-0.7

GENUS POWER Cash Flow Statement Analysis

• GENUS POWER's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -393 million, an improvement of 206.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -527 million, an improvement of 37% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 162 million from the Rs 376 million net cash flows seen during FY20.

GENUS POWER 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	1,336	1,082	-19.0%
Cash Flow from Investing Activities	Rs m	-128	-393	-
Cash Flow from Financing Activities	Rs m	-832	-527	-
Net Cash Flow	Rs m	376	162	-56.8%

Current Valuations for GENUS POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.7, an decline from the EPS of Rs 2.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 48.2, stands at 17.8 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 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 10.3 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	41.2	23.6
TTM Earnings per share	Rs	2.9	2.7
Diluted earnings per share	Rs	2.9	2.7
Price to Cash Flow	x	3.8	10.3
TTM P/E ratio	x	4.9	17.8
Price / Book Value ratio	x	0.7	1.0
Market Cap	Rs m	5,707	9,437
Dividends per share (Unadj.)	Rs	0.1	0.5

Ratio Analysis for GENUS POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY21, from 2.2x 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 5.1x during FY21, from 4.6x 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 7.7% during FY21, from 8.8% 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 declined and down at 13.8% during FY21, from 17.4% 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 6.9% during FY21, from 7.7% 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	2.2	2.6
Debtors’ Days	Days	2,166	3,391
Interest coverage	x	4.6	5.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.7	6.9
Return on equity	%	8.8	7.7
Return on capital employed	%	17.4	13.8

To see how GENUS POWER has performed over the last 5 years, please visit here.

GENUS POWER Share Price Performance

Over the last one year, GENUS POWER share price has moved up from Rs 14.0 to Rs 48.2, registering a gain of Rs 34.2 or around 243.9%.

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 GENUS POWER and quarterly results for GENUS POWER)

Read: Latest Annual Report Analysis of GENUS POWER