GUJARAT GAS 2021-22 Annual Report Analysis

Sun, 7 Aug

GUJARAT GAS 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 GAS Income Statement Analysis

• Operating income during the year rose 66.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.0% in FY22 as against 21.7% in FY21.
• Depreciation charges increased by 12.0% and finance costs decreased by 39.2% YoY, respectively.
• Other income grew by 26.9% YoY.
• Net profit for the year grew by 1.4% YoY.
• Net profit margins during the year declined from 13.1% in FY21 to 8.0% in FY22.

GUJARAT GAS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	96,758	161,251	66.7%
Other income	Rs m	716	909	26.9%
Total Revenues	Rs m	97,474	162,160	66.4%
Gross profit	Rs m	21,018	20,893	-0.6%
Depreciation	Rs m	3,436	3,849	12.0%
Interest	Rs m	1,343	817	-39.2%
Profit before tax	Rs m	16,954	17,135	1.1%
Tax	Rs m	4,272	4,278	0.1%
Profit after tax	Rs m	12,683	12,858	1.4%
Gross profit margin	%	21.7	13.0
Effective tax rate	%	25.2	25.0
Net profit margin	%	13.1	8.0

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

GUJARAT GAS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 25 billion as compared to Rs 23 billion in FY21, thereby witnessing an increase of 8.5%.
• Long-term debt down at Rs 4 billion as compared to Rs 8 billion during FY21, a fall of 49.2%.
• Current assets rose 4% and stood at Rs 14 billion, while fixed assets rose 14% and stood at Rs 82 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 96 billion as against Rs 85 billion during FY21, thereby witnessing a growth of 12%.

GUJARAT GAS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	44,776	56,299	25.7
Current Liabilities	Rs m	23,139	25,108	8.5
Long-term Debt	Rs m	7,700	3,910	-49.2
Total Liabilities	Rs m	85,390	95,873	12.3
Current assets	Rs m	13,405	13,900	3.7
Fixed Assets	Rs m	71,985	81,973	13.9
Total Assets	Rs m	85,390	95,873	12.3

GUJARAT GAS Cash Flow Statement Analysis

• GUJARAT GAS's cash flow from operating activities (CFO) during FY22 stood at Rs 17 billion, an improvement of 0.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -13 billion, an improvement of 110.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -6 billion, an improvement of 52% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -3 billion from the Rs -3 billion net cash flows seen during FY21.

GUJARAT GAS 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	16,588	16,617	0.2%
Cash Flow from Investing Activities	Rs m	-6,144	-12,935	-
Cash Flow from Financing Activities	Rs m	-13,179	-6,284	-
Net Cash Flow	Rs m	-2,735	-2,602	-

Current Valuations for GUJARAT GAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.7, an improvement from the EPS of Rs 18.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 438.8, stands at 25.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.4 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 26.1 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	140.6	234.2
TTM Earnings per share	Rs	18.4	18.7
Diluted earnings per share	Rs	18.4	18.7
Price to Cash Flow	x	23.5	26.1
TTM P/E ratio	x	29.8	25.2
Price / Book Value ratio	x	6.1	7.7
Market Cap	Rs m	270,950	435,338
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for GUJARAT GAS

• 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 22.0x during FY22, from 13.6x 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 22.8% during FY22, from 28.3% 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 29.8% during FY22, from 34.9% 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 14.3% during FY22, from 16.4% 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	0.6	0.6
Debtors’ Days	Days	3	2
Interest coverage	x	13.6	22.0
Debt to equity ratio	x	0.2	0.1
Return on assets	%	16.4	14.3
Return on equity	%	28.3	22.8
Return on capital employed	%	34.9	29.8

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 down from Rs 737.2 to Rs 438.8, registering a loss of Rs 298.4 or around 40.5%.

Overall, the S&P BSE SENSEX is up 7.4% 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