GRM OVERSEAS 2020-21 Annual Report Analysis

Wed, 31 Mar

GRM OVERSEAS 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.

GRM OVERSEAS Income Statement Analysis

• Operating income during the year rose 2.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.4% in FY21 as against 6.1% in FY20.
• Depreciation charges decreased by 3.1% and finance costs decreased by 19.2% YoY, respectively.
• Other income declined by 49.7% YoY.
• Net profit for the year grew by 43.3% YoY.
• Net profit margins during the year grew from 4.1% in FY20 to 5.7% in FY21.

GRM OVERSEAS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	7,772	7,994	2.9%
Other income	Rs m	128	64	-49.7%
Total Revenues	Rs m	7,900	8,058	2.0%
Gross profit	Rs m	476	669	40.5%
Depreciation	Rs m	29	28	-3.1%
Interest	Rs m	145	117	-19.2%
Profit before tax	Rs m	430	589	36.7%
Tax	Rs m	113	134	18.4%
Profit after tax	Rs m	317	454	43.3%
Gross profit margin	%	6.1	8.4
Effective tax rate	%	26.4	22.8
Net profit margin	%	4.1	5.7

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GRM OVERSEAS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 3.9%.
• Long-term debt down at Rs 0 million as compared to Rs 1 million during FY20, a fall of 89.3%.
• Current assets rose 18% and stood at Rs 4 billion, while fixed assets fell 3% and stood at Rs 377 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 4 billion during FY20, thereby witnessing a growth of 15%.

GRM OVERSEAS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	899	1,344	49.5
Current Liabilities	Rs m	2,674	2,777	3.9
Long-term Debt	Rs m	1	0	-89.3
Total Liabilities	Rs m	3,594	4,149	15.4
Current assets	Rs m	3,207	3,772	17.6
Fixed Assets	Rs m	387	377	-2.6
Total Assets	Rs m	3,594	4,149	15.4

GRM OVERSEAS Cash Flow Statement Analysis

• GRM OVERSEAS's cash flow from operating activities (CFO) during FY21 stood at Rs 352 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -9 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -330 million, an improvement of 79% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 14 million from the Rs 4 million net cash flows seen during FY20.

GRM OVERSEAS 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	1,621	352	-78.3%
Cash Flow from Investing Activities	Rs m	-71	-9	-
Cash Flow from Financing Activities	Rs m	-1,546	-330	-
Net Cash Flow	Rs m	4	14	242.9%

Current Valuations for GRM OVERSEAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 115.3, an improvement from the EPS of Rs 85.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,605.1, stands at 212.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 71.7 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 7.1 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	2,106.1	2,028.9
TTM Earnings per share	Rs	85.9	115.3
Diluted earnings per share	Rs	5.3	7.6
Price to Cash Flow	x	23.6	7.1
TTM P/E ratio	x	25.7	212.0
Price / Book Value ratio	x	0.8	2.5
Market Cap	Rs m	703	3,426
Dividends per share (Unadj.)	Rs	1.0	4.0

Ratio Analysis for GRM OVERSEAS

• 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 6.0x during FY21, from 4.0x 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 declined and down at 33.8% during FY21, from 35.3% 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 declined and down at 52.5% during FY21, from 63.9% 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 13.8% during FY21, from 12.9% 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	1,207	1,153
Interest coverage	x	4.0	6.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.9	13.8
Return on equity	%	35.3	33.8
Return on capital employed	%	63.9	52.5

To see how GRM OVERSEAS has performed over the last 5 years, please visit here.

GRM OVERSEAS Share Price Performance

Over the last one year, GRM OVERSEAS share price has moved up from Rs 135.9 to Rs 1,605.1, registering a gain of Rs 1,469.2 or around 1081.1%.

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

(To know more, check out historical annual results for GRM OVERSEAS and quarterly results for GRM OVERSEAS)

Read: Latest Annual Report Analysis of GRM OVERSEAS