GOKUL REFOILS 2021-22 Annual Report Analysis

Fri, 7 Oct

GOKUL REFOILS 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.

GOKUL REFOILS Income Statement Analysis

• Operating income during the year rose 23.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.3% in FY22 as against 1.6% in FY21.
• Depreciation charges increased by 16.6% and finance costs decreased by 10.4% YoY, respectively.
• Other income grew by 73.5% YoY.
• Net profit for the year grew by 29.7% YoY.
• Net profit margins during the year grew from 0.8% in FY21 to 0.9% in FY22.

GOKUL REFOILS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	24,647	30,530	23.9%
Other income	Rs m	124	215	73.5%
Total Revenues	Rs m	24,770	30,745	24.1%
Gross profit	Rs m	399	395	-1.1%
Depreciation	Rs m	54	62	16.6%
Interest	Rs m	201	180	-10.4%
Profit before tax	Rs m	269	367	36.6%
Tax	Rs m	64	102	58.6%
Profit after tax	Rs m	205	265	29.7%
Gross profit margin	%	1.6	1.3
Effective tax rate	%	23.9	27.8
Net profit margin	%	0.8	0.9

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GOKUL REFOILS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 5 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 26.1%.
• Current assets rose 19% and stood at Rs 7 billion, while fixed assets rose 23% and stood at Rs 1 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 8 billion as against Rs 7 billion during FY21, thereby witnessing a growth of 19%.

GOKUL REFOILS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	2,773	3,039	9.6
Current Liabilities	Rs m	4,290	5,412	26.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,102	8,484	19.5
Current assets	Rs m	5,992	7,116	18.8
Fixed Assets	Rs m	1,109	1,368	23.4
Total Assets	Rs m	7,102	8,484	19.5

GOKUL REFOILS Cash Flow Statement Analysis

• GOKUL REFOILS's cash flow from operating activities (CFO) during FY22 stood at Rs -723 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -74 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 662 million, an improvement of 526% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -135 million from the Rs -4 million net cash flows seen during FY21.

GOKUL REFOILS 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	63	-723	-
Cash Flow from Investing Activities	Rs m	89	-74	-
Cash Flow from Financing Activities	Rs m	-156	662	-
Net Cash Flow	Rs m	-4	-135	-

Current Valuations for GOKUL REFOILS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.7, an improvement from the EPS of Rs 2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 32.3, stands at 11.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 9.8 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	249.0	308.4
TTM Earnings per share	Rs	2.1	2.7
Diluted earnings per share	Rs	2.1	2.7
Price to Cash Flow	x	7.0	9.8
TTM P/E ratio	x	8.8	11.5
Price / Book Value ratio	x	0.6	1.1
Market Cap	Rs m	1,569	3,198
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GOKUL REFOILS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY22, from 1.4x 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 improved and stood at 3.0x during FY22, from 2.3x 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 8.7% during FY22, from 7.4% 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 18.0% during FY22, from 16.9% 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 declined and down at 5.2% during FY22, from 5.7% 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	1.4	1.3
Debtors’ Days	Days	158	200
Interest coverage	x	2.3	3.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.7	5.2
Return on equity	%	7.4	8.7
Return on capital employed	%	16.9	18.0

To see how GOKUL REFOILS has performed over the last 5 years, please visit here.

GOKUL REFOILS Share Price Performance

Over the last one year, GOKUL REFOILS share price has moved up from Rs 28.1 to Rs 32.3, registering a gain of Rs 4.2 or around 14.8%.

Overall, the S&P BSE SENSEX is down 2.0% over the year.

(To know more, check out historical annual results for GOKUL REFOILS and quarterly results for GOKUL REFOILS)