GRAVITA INDIA 2020-21 Annual Report Analysis

Wed, 31 Mar

GRAVITA INDIA 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.

GRAVITA INDIA Income Statement Analysis

• Operating income during the year rose 4.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.2% in FY21 as against 7.1% in FY20.
• Depreciation charges increased by 12.0% and finance costs decreased by 1.5% YoY, respectively.
• Other income grew by 621.4% YoY.
• Net profit for the year grew by 55.3% YoY.
• Net profit margins during the year grew from 2.7% in FY20 to 4.0% in FY21.

GRAVITA INDIA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	13,478	14,097	4.6%
Other income	Rs m	10	72	621.4%
Total Revenues	Rs m	13,488	14,169	5.1%
Gross profit	Rs m	955	1,150	20.4%
Depreciation	Rs m	181	203	12.0%
Interest	Rs m	314	310	-1.5%
Profit before tax	Rs m	469	709	51.1%
Tax	Rs m	103	141	36.0%
Profit after tax	Rs m	366	568	55.3%
Gross profit margin	%	7.1	8.2
Effective tax rate	%	22.0	19.9
Net profit margin	%	2.7	4.0

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GRAVITA INDIA 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 17.3%.
• Long-term debt stood at Rs 512 million as compared to Rs 429 million during FY20, a growth of 19.4%.
• Current assets rose 29% and stood at Rs 5 billion, while fixed assets fell 4% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 7 billion as against Rs 6 billion during FY20, thereby witnessing a growth of 18%.

GRAVITA INDIA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,252	2,689	19.4
Current Liabilities	Rs m	3,297	3,868	17.3
Long-term Debt	Rs m	429	512	19.4
Total Liabilities	Rs m	6,144	7,263	18.2
Current assets	Rs m	4,103	5,307	29.3
Fixed Assets	Rs m	2,041	1,957	-4.1
Total Assets	Rs m	6,144	7,263	18.2

GRAVITA INDIA Cash Flow Statement Analysis

• GRAVITA INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 765 million, an improvement of 126.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -194 million, an improvement of 35.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -565 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 6 million from the Rs -16 million net cash flows seen during FY20.

GRAVITA INDIA 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	339	765	126.0%
Cash Flow from Investing Activities	Rs m	-143	-194	-
Cash Flow from Financing Activities	Rs m	-212	-565	-
Net Cash Flow	Rs m	-16	6	-

Current Valuations for GRAVITA INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an improvement from the EPS of Rs 5.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 90.5, stands at 11.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 6.9 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	195.2	204.2
TTM Earnings per share	Rs	5.3	8.2
Diluted earnings per share	Rs	5.3	8.2
Price to Cash Flow	x	4.3	6.9
TTM P/E ratio	x	5.4	11.0
Price / Book Value ratio	x	2.0	2.0
Market Cap	Rs m	4,491	5,345
Dividends per share (Unadj.)	Rs	0.7	1.1

Ratio Analysis for GRAVITA INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY21, from 1.2x 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 3.3x during FY21, from 2.5x 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 21.1% during FY21, from 16.2% 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 31.8% during FY21, from 29.2% 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 12.1% 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	1.2	1.4
Debtors’ Days	Days	183	154
Interest coverage	x	2.5	3.3
Debt to equity ratio	x	0.2	0.2
Return on assets	%	11.1	12.1
Return on equity	%	16.2	21.1
Return on capital employed	%	29.2	31.8

To see how GRAVITA INDIA has performed over the last 5 years, please visit here.

GRAVITA INDIA Share Price Performance

Over the last one year, GRAVITA INDIA share price has moved up from Rs 33.9 to Rs 90.5, registering a gain of Rs 56.6 or around 167.0%.

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 GRAVITA INDIA and quarterly results for GRAVITA INDIA)

Read: Latest Annual Report Analysis of GRAVITA INDIA