GODAWARI POWER 2020-21 Annual Report Analysis

Wed, 31 Mar

GODAWARI 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.

GODAWARI POWER Income Statement Analysis

• Operating income during the year rose 23.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 101.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 30.2% in FY21 as against 18.6% in FY20.
• Depreciation charges increased by 1.1% and finance costs decreased by 27.4% YoY, respectively.
• Other income declined by 45.3% YoY.
• Net profit for the year grew by 258.0% YoY.
• Net profit margins during the year grew from 5.3% in FY20 to 15.3% in FY21.

GODAWARI POWER Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	32,885	40,719	23.8%
Other income	Rs m	74	40	-45.3%
Total Revenues	Rs m	32,959	40,760	23.7%
Gross profit	Rs m	6,112	12,289	101.0%
Depreciation	Rs m	1,369	1,385	1.1%
Interest	Rs m	2,119	1,539	-27.4%
Profit before tax	Rs m	2,698	9,405	248.6%
Tax	Rs m	954	3,161	231.4%
Profit after tax	Rs m	1,744	6,245	258.0%
Gross profit margin	%	18.6	30.2
Effective tax rate	%	35.3	33.6
Net profit margin	%	5.3	15.3

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GODAWARI 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 -9.8%.
• Long-term debt down at Rs 8 billion as compared to Rs 15 billion during FY20, a fall of 47.3%.
• Current assets rose 10% and stood at Rs 10 billion, while fixed assets fell 4% and stood at Rs 24 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 35 billion as against Rs 35 billion during FY20, thereby witnessing a fall of 0%.

GODAWARI POWER Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	13,778	20,356	47.7
Current Liabilities	Rs m	4,540	4,094	-9.8
Long-term Debt	Rs m	14,645	7,711	-47.3
Total Liabilities	Rs m	34,815	34,736	-0.2
Current assets	Rs m	9,332	10,278	10.1
Fixed Assets	Rs m	25,483	24,457	-4.0
Total Assets	Rs m	34,815	34,736	-0.2

GODAWARI POWER Cash Flow Statement Analysis

• GODAWARI POWER's cash flow from operating activities (CFO) during FY21 stood at Rs 10 billion, an improvement of 75.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -622 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -9 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 64 million from the Rs -1 million net cash flows seen during FY20.

GODAWARI 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	5,508	9,688	75.9%
Cash Flow from Investing Activities	Rs m	-1,501	-622	-
Cash Flow from Financing Activities	Rs m	-4,008	-9,001	-
Net Cash Flow	Rs m	-1	64	-

Current Valuations for GODAWARI POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 177.2, an improvement from the EPS of Rs 49.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 197.6, stands at 4.5 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 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 2.0 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	933.2	1,155.5
TTM Earnings per share	Rs	49.5	177.2
Diluted earnings per share	Rs	12.4	44.3
Price to Cash Flow	x	1.3	2.0
TTM P/E ratio	x	2.3	4.5
Price / Book Value ratio	x	0.5	0.7
Market Cap	Rs m	6,341	15,149
Dividends per share (Unadj.)	Rs	0.0	9.3

Ratio Analysis for GODAWARI POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY21, from 2.1x 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 7.1x during FY21, from 2.3x 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 30.7% during FY21, from 12.7% 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 39.0% during FY21, from 16.9% 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 22.4% during FY21, from 11.1% 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	2.1	2.5
Debtors’ Days	Days	196	247
Interest coverage	x	2.3	7.1
Debt to equity ratio	x	1.1	0.4
Return on assets	%	11.1	22.4
Return on equity	%	12.7	30.7
Return on capital employed	%	16.9	39.0

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

GODAWARI POWER Share Price Performance

Over the last one year, GODAWARI POWER share price has moved up from Rs 28.6 to Rs 197.6, registering a gain of Rs 169.0 or around 592.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

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

(To know more, check out historical annual results for GODAWARI POWER and quarterly results for GODAWARI POWER)

Read: Latest Annual Report Analysis of GODAWARI POWER