GUJARAT STATE FERTILIZERS 2021-22 Annual Report Analysis

Thu, 8 Sep

GUJARAT STATE FERTILIZERS 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.

GUJARAT STATE FERTILIZERS Income Statement Analysis

• Operating income during the year rose 19.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 130.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.5% in FY22 as against 7.5% in FY21.
• Depreciation charges increased by 0.9% and finance costs decreased by 77.3% YoY, respectively.
• Other income grew by 0.0% YoY.
• Net profit for the year grew by 99.6% YoY.
• Net profit margins during the year grew from 5.9% in FY21 to 9.9% in FY22.

GUJARAT STATE FERTILIZERS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	76,341	90,826	19.0%
Other income	Rs m	1,832	1,833	0.0%
Total Revenues	Rs m	78,172	92,659	18.5%
Gross profit	Rs m	5,720	13,205	130.9%
Depreciation	Rs m	1,772	1,788	0.9%
Interest	Rs m	430	98	-77.3%
Profit before tax	Rs m	5,349	13,152	145.9%
Tax	Rs m	848	4,166	391.1%
Profit after tax	Rs m	4,501	8,986	99.6%
Gross profit margin	%	7.5	14.5
Effective tax rate	%	15.9	31.7
Net profit margin	%	5.9	9.9

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GUJARAT STATE FERTILIZERS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 14 billion as compared to Rs 10 billion in FY21, thereby witnessing an increase of 33.4%.
• Current assets rose 31% and stood at Rs 46 billion, while fixed assets rose 25% and stood at Rs 96 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 141 billion as against Rs 112 billion during FY21, thereby witnessing a growth of 27%.

GUJARAT STATE FERTILIZERS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	92,402	117,722	27.4
Current Liabilities	Rs m	10,297	13,738	33.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	111,641	141,247	26.5
Current assets	Rs m	35,007	45,722	30.6
Fixed Assets	Rs m	76,634	95,525	24.7
Total Assets	Rs m	111,641	141,247	26.5

GUJARAT STATE FERTILIZERS Cash Flow Statement Analysis

• GUJARAT STATE FERTILIZERS's cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -181 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion, an improvement of 92% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 925 million from the Rs 2 billion net cash flows seen during FY21.

GUJARAT STATE FERTILIZERS 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	17,827	2,371	-86.7%
Cash Flow from Investing Activities	Rs m	-228	-181	-
Cash Flow from Financing Activities	Rs m	-15,590	-1,265	-
Net Cash Flow	Rs m	2,009	925	-54.0%

Current Valuations for GUJARAT STATE FERTILIZERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.6, an improvement from the EPS of Rs 11.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 157.3, stands at 5.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 4.6 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	191.6	227.9
TTM Earnings per share	Rs	11.3	22.6
Diluted earnings per share	Rs	11.3	22.6
Price to Cash Flow	x	5.2	4.6
TTM P/E ratio	x	7.2	5.7
Price / Book Value ratio	x	0.3	0.4
Market Cap	Rs m	28,531	50,029
Dividends per share (Unadj.)	Rs	2.2	2.5

Ratio Analysis for GUJARAT STATE FERTILIZERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.3x during FY22, from 3.4x 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 135.6x during FY22, from 13.4x 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 7.6% during FY22, from 4.9% 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 11.3% during FY22, from 6.3% 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 6.4% during FY22, from 4.4% 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	3.4	3.3
Debtors’ Days	Days	467	419
Interest coverage	x	13.4	135.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.4	6.4
Return on equity	%	4.9	7.6
Return on capital employed	%	6.3	11.3

To see how GUJARAT STATE FERTILIZERS has performed over the last 5 years, please visit here.

GUJARAT STATE FERTILIZERS Share Price Performance

Over the last one year, GUJARAT STATE FERTILIZERS share price has moved up from Rs 103.0 to Rs 157.3, registering a gain of Rs 54.3 or around 52.7%.

Overall, the S&P BSE SENSEX is up 2.4% over the year.

(To know more, check out historical annual results for GUJARAT STATE FERTILIZERS and quarterly results for GUJARAT STATE FERTILIZERS)

Read: Latest Annual Report Analysis of GUJARAT STATE FERTILIZERS