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GRAVITA INDIA 2021-22 Annual Report Analysis
Fri, 23 Sep

GRAVITA INDIA 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.

GRAVITA INDIA Income Statement Analysis

  • Operating income during the year rose 57.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 87.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.7% in FY22 as against 8.2% in FY21.
  • Depreciation charges increased by 1.3% and finance costs increased by 22.7% YoY, respectively.
  • Other income grew by 9.3% YoY.
  • Net profit for the year grew by 161.3% YoY.
  • Net profit margins during the year grew from 4.0% in FY21 to 6.7% in FY22.

GRAVITA INDIA Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 14,098 22,159 57.2%
Other income Rs m 72 78 9.3%
Total Revenues Rs m 14,169 22,237 56.9%
Gross profit Rs m 1,150 2,154 87.3%
Depreciation Rs m 203 206 1.3%
Interest Rs m 310 380 22.7%
Profit before tax Rs m 709 1,646 132.2%
Tax Rs m 141 162 15.0%
Profit after tax Rs m 568 1,485 161.3%
Gross profit margin % 8.2 9.7
Effective tax rate % 19.9 9.8
Net profit margin % 4.0 6.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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GRAVITA INDIA 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 21.1%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 512 million during FY21, a growth of 113.8%.
  • Current assets rose 42% and stood at Rs 8 billion, while fixed assets rose 25% and stood at Rs 2 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 10 billion as against Rs 7 billion during FY21, thereby witnessing a growth of 37%.

GRAVITA INDIA Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 2,689 3,869 43.8
 
Current Liabilities Rs m 3,868 4,685 21.1
Long-term Debt Rs m 512 1,095 113.8
Total Liabilities Rs m 7,263 9,975 37.3
 
Current assets Rs m 5,307 7,522 41.8
Fixed Assets Rs m 1,957 2,453 25.4
Total Assets Rs m 7,263 9,975 37.3
* 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 FY22 stood at Rs 100 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -699 million, an improvement of 261.1% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 720 million, an improvement of 227% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 121 million from the Rs 7 million net cash flows seen during FY21.

GRAVITA INDIA 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 765 100 -86.9%
Cash Flow from Investing Activities Rs m -194 -699 -
Cash Flow from Financing Activities Rs m -565 720 -
Net Cash Flow Rs m 7 121 1,761.5%
* 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 21.5, an improvement from the EPS of Rs 8.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 328.0, stands at 13.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 1.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.6 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 204.2 321.0
TTM Earnings per share Rs 8.2 21.5
Diluted earnings per share Rs 8.2 21.5
Price to Cash Flow x 8.1 9.6
TTM P/E ratio x 11.0 13.3
Price / Book Value ratio x 2.0 4.2
Market Cap Rs m 5,345 16,265
Dividends per share (Unadj.) Rs 1.1 3.0
* 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 1.6x 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 5.3x during FY22, from 3.3x 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 38.4% during FY22, from 21.1% 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 40.8% during FY22, from 31.8% 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 improved and stood at 18.7% during FY22, from 12.1% 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 1.6
Debtors’ Days Days 2 2
Interest coverage x 3.3 5.3
Debt to equity ratio x 0.2 0.3
Return on assets % 12.1 18.7
Return on equity % 21.1 38.4
Return on capital employed % 31.8 40.8
* 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 197.5 to Rs 328.0, registering a gain of Rs 130.6 or around 66.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 18,672.8 (down 1.4%). Over the last one year it has moved down from 20,230.4 to 18,672.8, a loss of 1,558 points (down 7.7%).

Overall, the S&P BSE SENSEX is down 1.5% over the year.

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

Annual Report FAQs

What is the current share price of GRAVITA INDIA?

GRAVITA INDIA currently trades at Rs 0.0 per share. You can check out the latest share price performance of GRAVITA INDIA here...

What was the revenue of GRAVITA INDIA in FY22? How does it compare to earlier years?

The revenues of GRAVITA INDIA stood at Rs 22,237 m in FY22, which was up 56.9% compared to Rs 14,169 m reported in FY21.

GRAVITA INDIA's revenue has grown from Rs 10,069 m in FY18 to Rs 22,237 m in FY22.

Over the past 5 years, the revenue of GRAVITA INDIA has grown at a CAGR of 21.9%.

What was the net profit of GRAVITA INDIA in FY22? How does it compare to earlier years?

The net profit of GRAVITA INDIA stood at Rs 1,485 m in FY22, which was up 161.3% compared to Rs 568 m reported in FY21.

This compares to a net profit of Rs 366 m in FY20 and a net profit of Rs 194 m in FY19.

Over the past 5 years, GRAVITA INDIA net profit has grown at a CAGR of 32.9%.

What does the cash flow statement of GRAVITA INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of GRAVITA INDIA reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 100 m as compared to Rs 765 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -699 m as compared to Rs -194 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 720 m as compared to Rs -565 m in FY21.

Here's the cash flow statement of GRAVITA INDIA for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations-25890339765100
From Investments-419-664-143-194-699
From Financial Activity405-167-212-565720
Net Cashflow-4060-167121

What does the Key Ratio analysis of GRAVITA INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of GRAVITA INDIA reveals:

  • Operating profit margins witnessed a fall and down at 9.7% in FY22 as against 8.2% in FY21.
  • Net profit margins grew from 4.0% in FY21 to 6.7% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.3 as compared to 0.2 in FY21.

Here's the ratio/financial analysis of GRAVITA INDIA for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)9.15.07.18.29.7
Net Profit Margin (%)4.71.62.74.06.7
Debt to Equity Ratio (x)0.10.10.20.20.3

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