GTPL HATHWAY 2021-22 Annual Report Analysis

Fri, 20 May

GTPL HATHWAY 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.

GTPL HATHWAY Income Statement Analysis

• Operating income during the year fell 2.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.3% in FY22 as against 20.6% in FY21.
• Depreciation charges decreased by 2.9% and finance costs decreased by 37.4% YoY, respectively.
• Other income declined by 32.5% YoY.
• Net profit for the year grew by 3.7% YoY.
• Net profit margins during the year grew from 8.6% in FY21 to 9.1% in FY22.

GTPL HATHWAY Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	24,670	24,141	-2.1%
Other income	Rs m	630	425	-32.5%
Total Revenues	Rs m	25,300	24,567	-2.9%
Gross profit	Rs m	5,093	5,152	1.1%
Depreciation	Rs m	2,604	2,529	-2.9%
Interest	Rs m	230	144	-37.4%
Profit before tax	Rs m	2,889	2,904	0.5%
Tax	Rs m	775	712	-8.1%
Profit after tax	Rs m	2,114	2,192	3.7%
Gross profit margin	%	20.6	21.3
Effective tax rate	%	26.8	24.5
Net profit margin	%	8.6	9.1

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GTPL HATHWAY Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 11 billion as compared to Rs 13 billion in FY21, thereby witnessing an decrease of -15.4%.
• Long-term debt stood at Rs 347 million as compared to Rs 155 million during FY21, a growth of 123.5%.
• Current assets fell 17% and stood at Rs 6 billion, while fixed assets rose 9% and stood at Rs 17 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 23 billion as against Rs 23 billion during FY21, thereby witnessing a growth of 1%.

GTPL HATHWAY Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	8,801	10,319	17.2
Current Liabilities	Rs m	13,028	11,019	-15.4
Long-term Debt	Rs m	155	347	123.5
Total Liabilities	Rs m	22,775	22,919	0.6
Current assets	Rs m	7,331	6,100	-16.8
Fixed Assets	Rs m	15,443	16,819	8.9
Total Assets	Rs m	22,775	22,919	0.6

GTPL HATHWAY Cash Flow Statement Analysis

• GTPL HATHWAY's cash flow from operating activities (CFO) during FY22 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -232 million from the Rs 96 million net cash flows seen during FY21.

GTPL HATHWAY 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	5,505	4,020	-27.0%
Cash Flow from Investing Activities	Rs m	-3,779	-3,178	-
Cash Flow from Financing Activities	Rs m	-1,631	-1,074	-
Net Cash Flow	Rs m	96	-232	-

Current Valuations for GTPL HATHWAY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.5, an improvement from the EPS of Rs 18.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 160.9, stands at 8.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 5.1 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	219.4	214.7
TTM Earnings per share	Rs	18.8	19.5
Diluted earnings per share	Rs	18.8	19.5
Price to Cash Flow	x	2.8	5.1
TTM P/E ratio	x	6.3	8.3
Price / Book Value ratio	x	1.3	2.3
Market Cap	Rs m	11,412	24,188
Dividends per share (Unadj.)	Rs	4.0	4.0

Ratio Analysis for GTPL HATHWAY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY22, from 0.6x 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 21.1x during FY22, from 13.5x 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 declined and down at 21.2% during FY22, from 24.0% 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 declined and down at 28.6% during FY22, from 34.8% 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 declined and down at 10.2% during FY22, from 10.3% 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	0.6	0.6
Debtors’ Days	Days	61	43
Interest coverage	x	13.5	21.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.3	10.2
Return on equity	%	24.0	21.2
Return on capital employed	%	34.8	28.6

To see how GTPL HATHWAY has performed over the last 5 years, please visit here.

GTPL HATHWAY Share Price Performance

Over the last one year, GTPL HATHWAY share price has moved up from Rs 143.2 to Rs 160.9, registering a gain of Rs 17.7 or around 12.4%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

(To know more, check out historical annual results for GTPL HATHWAY and quarterly results for GTPL HATHWAY)

Read: Latest Annual Report Analysis of GTPL HATHWAY