GRAUER & WEIL 2020-21 Annual Report Analysis

Wed, 31 Mar

GRAUER & WEIL 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.

GRAUER & WEIL Income Statement Analysis

• Operating income during the year fell 2.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.7% in FY21 as against 17.1% in FY20.
• Depreciation charges decreased by 3.2% and finance costs decreased by 12.5% YoY, respectively.
• Other income grew by 24.2% YoY.
• Net profit for the year declined by 9.1% YoY.
• Net profit margins during the year declined from 12.2% in FY20 to 11.4% in FY21.

GRAUER & WEIL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	6,194	6,058	-2.2%
Other income	Rs m	119	147	24.2%
Total Revenues	Rs m	6,313	6,206	-1.7%
Gross profit	Rs m	1,058	1,009	-4.7%
Depreciation	Rs m	190	184	-3.2%
Interest	Rs m	33	29	-12.5%
Profit before tax	Rs m	954	944	-1.1%
Tax	Rs m	196	254	29.9%
Profit after tax	Rs m	758	689	-9.1%
Gross profit margin	%	17.1	16.7
Effective tax rate	%	20.5	26.9
Net profit margin	%	12.2	11.4

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GRAUER & WEIL Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 1 billion in FY20, thereby witnessing an increase of 21.7%.
• Long-term debt down at Rs 2 million as compared to Rs 2 million during FY20, a fall of 3.5%.
• Current assets rose 31% and stood at Rs 5 billion, while fixed assets fell 4% and stood at Rs 3 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 17%.

GRAUER & WEIL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,448	5,140	15.6
Current Liabilities	Rs m	1,491	1,814	21.7
Long-term Debt	Rs m	2	2	-3.5
Total Liabilities	Rs m	6,419	7,499	16.8
Current assets	Rs m	3,805	4,987	31.1
Fixed Assets	Rs m	2,615	2,511	-4.0
Total Assets	Rs m	6,419	7,499	16.8

GRAUER & WEIL Cash Flow Statement Analysis

• GRAUER & WEIL's cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion, an improvement of 38.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -932 million, an improvement of 76.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -27 million, an improvement of 93% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 208 million from the Rs -52 million net cash flows seen during FY20.

GRAUER & WEIL 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	840	1,167	38.9%
Cash Flow from Investing Activities	Rs m	-528	-932	-
Cash Flow from Financing Activities	Rs m	-365	-27	-
Net Cash Flow	Rs m	-52	208	-

Current Valuations for GRAUER & WEIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.0, an decline from the EPS of Rs 3.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 39.2, stands at 12.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 10.3 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	27.3	26.7
TTM Earnings per share	Rs	3.3	3.0
Diluted earnings per share	Rs	3.3	3.0
Price to Cash Flow	x	8.1	10.3
TTM P/E ratio	x	10.1	12.9
Price / Book Value ratio	x	2.3	1.7
Market Cap	Rs m	10,247	8,972
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for GRAUER & WEIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY21, from 2.6x 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 34.1x during FY21, from 30.2x 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 13.4% during FY21, from 17.1% 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 18.9% during FY21, from 22.2% 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 declined and down at 9.6% during FY21, from 12.3% 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	2.6	2.7
Debtors’ Days	Days	671	765
Interest coverage	x	30.2	34.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.3	9.6
Return on equity	%	17.1	13.4
Return on capital employed	%	22.2	18.9

To see how GRAUER & WEIL has performed over the last 5 years, please visit here.

GRAUER & WEIL Share Price Performance

Over the last one year, GRAUER & WEIL share price has moved up from Rs 33.9 to Rs 39.2, registering a gain of Rs 5.4 or around 15.8%.

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

(To know more, check out historical annual results for GRAUER & WEIL and quarterly results for GRAUER & WEIL)

Read: Latest Annual Report Analysis of GRAUER & WEIL