GRM OVERSEAS 2021-22 Annual Report Analysis

Fri, 7 Oct

GRM OVERSEAS 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.

GRM OVERSEAS Income Statement Analysis

• Operating income during the year rose 41.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.2% in FY22 as against 8.4% in FY21.
• Depreciation charges increased by 8.0% and finance costs increased by 11.0% YoY, respectively.
• Other income grew by 512.3% YoY.
• Net profit for the year grew by 86.1% YoY.
• Net profit margins during the year grew from 5.7% in FY21 to 7.5% in FY22.

GRM OVERSEAS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	7,998	11,343	41.8%
Other income	Rs m	61	371	512.3%
Total Revenues	Rs m	8,058	11,714	45.4%
Gross profit	Rs m	674	927	37.5%
Depreciation	Rs m	29	31	8.0%
Interest	Rs m	117	130	11.0%
Profit before tax	Rs m	589	1,136	93.1%
Tax	Rs m	134	291	116.7%
Profit after tax	Rs m	454	845	86.1%
Gross profit margin	%	8.4	8.2
Effective tax rate	%	22.8	25.6
Net profit margin	%	5.7	7.5

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GRM OVERSEAS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 5 billion as compared to Rs 3 billion in FY21, thereby witnessing an increase of 64.9%.
• Long-term debt stood at Rs 4 million as compared to Rs 0 million during FY21, a growth of 3307.7%.
• Current assets rose 66% and stood at Rs 6 billion, while fixed assets rose 5% and stood at Rs 396 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 7 billion as against Rs 4 billion during FY21, thereby witnessing a growth of 61%.

GRM OVERSEAS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,344	2,057	53.0
Current Liabilities	Rs m	2,777	4,580	64.9
Long-term Debt	Rs m	0	4	3,307.7
Total Liabilities	Rs m	4,149	6,670	60.8
Current assets	Rs m	3,771	6,274	66.4
Fixed Assets	Rs m	378	396	4.8
Total Assets	Rs m	4,149	6,670	60.8

GRM OVERSEAS Cash Flow Statement Analysis

• GRM OVERSEAS's cash flow from operating activities (CFO) during FY22 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -60 million, an improvement of 595.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 1 billion, an improvement of 478% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 29 million from the Rs 14 million net cash flows seen during FY21.

GRM OVERSEAS 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	352	-1,157	-
Cash Flow from Investing Activities	Rs m	-9	-60	-
Cash Flow from Financing Activities	Rs m	-330	1,246	-
Net Cash Flow	Rs m	14	29	110.4%

Current Valuations for GRM OVERSEAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.1, an decline from the EPS of Rs 115.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 403.3, stands at 28.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.8 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 108.7 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	2,029.9	189.0
TTM Earnings per share	Rs	115.3	14.1
Diluted earnings per share	Rs	7.6	14.1
Price to Cash Flow	x	199.3	108.7
TTM P/E ratio	x	212.0	28.6
Price / Book Value ratio	x	2.5	46.3
Market Cap	Rs m	3,426	95,265
Dividends per share (Unadj.)	Rs	4.0	2.9

Ratio Analysis for GRM OVERSEAS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x 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 9.7x during FY22, from 6.0x 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 41.1% during FY22, from 33.8% 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 61.4% during FY22, from 52.5% 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 14.6% during FY22, from 13.8% 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	1.4
Debtors’ Days	Days	1,153	1,300
Interest coverage	x	6.0	9.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.8	14.6
Return on equity	%	33.8	41.1
Return on capital employed	%	52.5	61.4

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 down from Rs 1,084.5 to Rs 403.3, registering a loss of Rs 681.2 or around 62.8%.

Overall, the S&P BSE SENSEX is down 2.1% over the year.

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