GVK POWER & INFRA 2017-18 Annual Report Analysis

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GVK POWER & INFRA 2017-18 Annual Report Analysis
Tue, 26 Mar

GVK POWER & INFRA has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

GVK POWER & INFRA Income Statement Analysis

  • Operating income during the year rose 9.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 34.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 40.3% in FY18 as against 32.9% in FY17.
  • Depreciation charges increased by 8.4% and finance costs decreased by 13.1% YoY, respectively.
  • Other income grew by 88.5% YoY.
  • Net profit for the year declined by 60.0% YoY.
  • Net profit margins during the year grew from 33.2% in FY17 to 11.0% in FY18.

GVK POWER & INFRA Income Statement 2017-18

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
Net SalesRs m35,16538,6329.9%
Other incomeRs m5,32710,04288.5%
Total RevenuesRs m40,49148,67420.2%
Gross profitRs m11,56315,56234.6%
DepreciationRs m6,6877,2468.4%
InterestRs m18,90416,431-13.1%
Profit before taxRs m-8,7011,927-122.1%
TaxRs m5731,616182.1%
Profit after taxRs m-13,436-5,374-60.0%
Gross profit margin%32.940.3
Effective tax rate%-6.683.8
Net profit margin%-33.2-11.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GVK POWER & INFRA Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 57 billion as compared to Rs 70 billion in FY17, thereby witnessing an decrease of -17.9%.
  • Long-term debt stood at Rs 107 billion as compared to Rs 105 billion during FY17, a growth of 1.7%.
  • Current assets rose 29% and stood at Rs 26 billion, while fixed assets rose 1% and stood at Rs 116 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 203 billion as against Rs 206 billion during FY17, thereby witnessing a fall of 2%.

GVK POWER & INFRA Balance Sheet as on March 2018

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
NetworthRs m-2,968-8,413183.4
 
Current LiabilitiesRs m69,69057,248-17.9
Long-term DebtRs m105,115106,9331.7
Total LiabilitiesRs m206,312202,719-1.7
 
Current assetsRs m19,87725,60228.8
Fixed AssetsRs m 115,450116,0570.5
Total AssetsRs m206,312202,719-1.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



GVK POWER & INFRA Cash Flow Statement Analysis

  • GVK POWER & INFRA's cash flow from operating activities (CFO) during FY18 stood at Rs 25 billion, an improvement of 73.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -79 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -24 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 433 million from the Rs 2 billion net cash flows seen during FY17.

GVK POWER & INFRA Cash Flow Statement 2017-18

ParticularsNo. of months1212% Change
Year EndingMar-17Mar-18
Cash Flow from Operating ActivitiesRs m14,33224,82673.2%
Cash Flow from Investing ActivitiesRs m8,975-79-
Cash Flow from Financing ActivitiesRs m-21,721-24,314-
Net Cash FlowRs m1,586433-72.7%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for GVK POWER & INFRA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.4, an improvement from the EPS of Rs -8.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 7.5, stands at 17.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -3.1 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 1.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Sales per share (Unadj.)Rs22.324.5
TTM Earnings per shareRs-8.5-3.4
Diluted earnings per shareRs-8.5-3.4
Price to Cash Flow x-4.61.6
TTM P/E ratiox17.517.5
Price / Book Value ratiox-3.1-3.1
Market CapRs m11,86011,860
Dividends per share (Unadj.)Rs0.00.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for GVK POWER & INFRA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.4x during FY18, from 0.3x during FY17. 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 1.1x during FY18, from 0.5x during FY17. 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 63.9% during FY18, from 452.7% during FY18. 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 12.9% during FY18, from 5.9% during FY17. 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 5.5% during FY18, from 2.7% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Current ratiox0.30.4
Debtors’ DaysDays4640
Interest coveragex0.51.1
Debt to equity ratiox-35.4-12.7
Return on assets%2.75.5
Return on equity%452.763.9
Return on capital employed%5.912.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how GVK POWER & INFRA has performed over the last 5 years, please visit here.

GVK POWER & INFRA Share Price Performance

Over the last one year, GVK POWER & INFRA share price has moved up from Rs 14.0 to Rs 7.5, registering a loss of Rs 6.5 or around 46.4%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,029.0 (up 0.9%). Over the last one year it has moved down from 2,133.3 to 2,029.0, a loss of 104 points (down 4.9%).

(To know more, check out historical annual results for GVK POWER & INFRA and quarterly results for GVK POWER & INFRA)

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GVK POWER & INFRA Announces Quarterly Results (1QFY20); Net Profit Up 28.2% (Quarterly Result Update)

Aug 16, 2019 | Updated on Aug 16, 2019

For the quarter ended June 2019, GVK POWER & INFRA has posted a net profit of Rs 207 m (up 28.2% YoY). Sales on the other hand came in at Rs 85 m (up 170.3% YoY). Read on for a complete analysis of GVK POWER & INFRA's quarterly results.

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