GUJARAT GAS 2020-21 Annual Report Analysis

Wed, 31 Mar

GUJARAT GAS 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.

GUJARAT GAS Income Statement Analysis

• Operating income during the year fell 4.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.8% in FY21 as against 16.3% in FY20.
• Depreciation charges increased by 7.2% and finance costs decreased by 34.7% YoY, respectively.
• Other income declined by 11.6% YoY.
• Net profit for the year grew by 6.4% YoY.
• Net profit margins during the year grew from 11.9% in FY20 to 13.2% in FY21.

GUJARAT GAS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	100,742	96,662	-4.0%
Other income	Rs m	839	742	-11.6%
Total Revenues	Rs m	101,581	97,404	-4.1%
Gross profit	Rs m	16,470	21,054	27.8%
Depreciation	Rs m	3,180	3,408	7.2%
Interest	Rs m	2,050	1,339	-34.7%
Profit before tax	Rs m	12,080	17,048	41.1%
Tax	Rs m	92	4,292	4,585.8%
Profit after tax	Rs m	11,989	12,756	6.4%
Gross profit margin	%	16.3	21.8
Effective tax rate	%	0.8	25.2
Net profit margin	%	11.9	13.2

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GUJARAT GAS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 22 billion as compared to Rs 18 billion in FY20, thereby witnessing an increase of 21.6%.
• Long-term debt down at Rs 8 billion as compared to Rs 18 billion during FY20, a fall of 58.0%.
• Current assets fell 2% and stood at Rs 14 billion, while fixed assets rose 9% and stood at Rs 71 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 85 billion as against Rs 79 billion during FY20, thereby witnessing a growth of 7%.

GUJARAT GAS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	33,174	45,116	36.0
Current Liabilities	Rs m	18,193	22,122	21.6
Long-term Debt	Rs m	18,344	7,700	-58.0
Total Liabilities	Rs m	79,254	84,797	7.0
Current assets	Rs m	14,403	14,120	-2.0
Fixed Assets	Rs m	64,852	70,678	9.0
Total Assets	Rs m	79,254	84,797	7.0

GUJARAT GAS Cash Flow Statement Analysis

• GUJARAT GAS's cash flow from operating activities (CFO) during FY21 stood at Rs 17 billion, an improvement of 16.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -6 billion, an improvement of 30.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -13 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -3 billion from the Rs 5 billion net cash flows seen during FY20.

GUJARAT GAS 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	14,198	16,552	16.6%
Cash Flow from Investing Activities	Rs m	-4,665	-6,103	-
Cash Flow from Financing Activities	Rs m	-5,024	-13,177	-
Net Cash Flow	Rs m	4,510	-2,728	-

Current Valuations for GUJARAT GAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.5, an improvement from the EPS of Rs 17.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 549.8, stands at 29.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.4 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 16.8 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	146.3	140.4
TTM Earnings per share	Rs	17.4	18.5
Diluted earnings per share	Rs	17.4	18.5
Price to Cash Flow	x	10.6	16.8
TTM P/E ratio	x	13.4	29.8
Price / Book Value ratio	x	4.8	6.0
Market Cap	Rs m	157,796	270,950
Dividends per share (Unadj.)	Rs	1.3	2.0

Ratio Analysis for GUJARAT GAS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY21, from 0.8x 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 13.7x during FY21, from 6.9x 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 28.3% during FY21, from 36.1% 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 improved and stood at 34.8% during FY21, from 27.4% 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 16.6% during FY21, from 17.7% 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	0.8	0.6
Debtors’ Days	Days	2	3
Interest coverage	x	6.9	13.7
Debt to equity ratio	x	0.6	0.2
Return on assets	%	17.7	16.6
Return on equity	%	36.1	28.3
Return on capital employed	%	27.4	34.8

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

GUJARAT GAS Share Price Performance

Over the last one year, GUJARAT GAS share price has moved up from Rs 232.6 to Rs 549.8, registering a gain of Rs 317.2 or around 136.3%.

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

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

Read: Latest Annual Report Analysis of GUJARAT GAS