GRM OVERSEAS 2020-21 Annual Report Analysis

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GRM OVERSEAS 2020-21 Annual Report Analysis
Mon, 1 Nov

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 4.0% in FY20 to 5.6% 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 % 4.0 5.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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



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



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 1,120.0, stands at 20.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 27.9 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 2,106.1 2,028.9
TTM Earnings per share Rs 85.9 115.3
Diluted earnings per share Rs 26.4 37.8
Price to Cash Flow x 11.9 27.9
TTM P/E ratio x 6.1 20.0
Price / Book Value ratio x 0.8 0.8
Market Cap Rs m 4,132 13,440
Dividends per share (Unadj.) Rs 5.0 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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



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 105.6 to Rs 1,120.0, registering a gain of Rs 1,014.4 or around 961.0%.

Overall, the S&P BSE SENSEX is up 50.6% over the year.

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

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