GRAVITA INDIA 2020-21 Annual Report Analysis

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GRAVITA INDIA 2020-21 Annual Report Analysis
Mon, 1 Nov

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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Check Out: Why Millions of Dollars are Getting Pumped into this Sector?

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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 225.0, stands at 20.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.1 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 28.4 20.1
TTM P/E ratio x 20.6 20.6
Price / Book Value ratio x 2.0 2.0
Market Cap Rs m 15,534 15,534
Dividends per share (Unadj.) Rs 0.7 1.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 42.6 to Rs 225.0, registering a gain of Rs 182.4 or around 428.2%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 20,681.8 (up 3.3%). Over the last one year it has moved up from 8,207.5 to 20,681.8, a gain of 12,474 points (up 152.0%).

Overall, the S&P BSE SENSEX is up 50.7% over the year.

(To know more, check out historical annual results for GRAVITA INDIA and quarterly results for GRAVITA INDIA)

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