GYSCOAL ALLOYS 2021-22 Annual Report Analysis

Tue, 6 Sep

GYSCOAL ALLOYS 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.

GYSCOAL ALLOYS Income Statement Analysis

• Operating income during the year rose 59.3% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.4% in FY22 as against 650.7% in FY21.
• Depreciation charges decreased by 19.3% and finance costs decreased by 91.3% YoY, respectively.
• Other income grew by 1143.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 591.0% in FY21 to 28.1% in FY22.

GYSCOAL ALLOYS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	126	200	59.3%
Other income	Rs m	2	29	1,143.1%
Total Revenues	Rs m	128	229	78.9%
Gross profit	Rs m	-819	17	NA
Depreciation	Rs m	45	37	-19.3%
Interest	Rs m	62	5	-91.3%
Profit before tax	Rs m	-924	4	NA
Tax	Rs m	-180	60	NA
Profit after tax	Rs m	-744	-56	NA
Gross profit margin	%	-650.7	8.4
Effective tax rate	%	19.5	1,639.1
Net profit margin	%	-591.0	-28.1

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

GYSCOAL ALLOYS Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 426 million as compared to Rs 1 billion in FY21, thereby witnessing an decrease of -67.9%.
• Long-term debt stood at Rs 756 million as compared to Rs 316 million during FY21, a growth of 139.5%.
• Current assets fell 28% and stood at Rs 435 million, while fixed assets fell 15% and stood at Rs 239 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 674 million as against Rs 889 million during FY21, thereby witnessing a fall of 24%.

GYSCOAL ALLOYS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-501	-315	NA
Current Liabilities	Rs m	1,328	426	-67.9
Long-term Debt	Rs m	316	756	139.5
Total Liabilities	Rs m	889	674	-24.1
Current assets	Rs m	607	435	-28.3
Fixed Assets	Rs m	282	239	-15.0
Total Assets	Rs m	889	674	-24.1

GYSCOAL ALLOYS Cash Flow Statement Analysis

• GYSCOAL ALLOYS's cash flow from operating activities (CFO) during FY22 stood at Rs -213 million, an improvement of 90.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 1 million, an improvement of 43.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 214 million, an improvement of 95% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 2 million from the Rs -2 million net cash flows seen during FY21.

GYSCOAL ALLOYS 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	-112	-213	-
Cash Flow from Investing Activities	Rs m	1	1	43.8%
Cash Flow from Financing Activities	Rs m	110	214	95.3%
Net Cash Flow	Rs m	-2	2	-

Current Valuations for GYSCOAL ALLOYS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.4, an improvement from the EPS of Rs -4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3.0, stands at -4.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -1.5 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at -42.3 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	0.8	1.3
TTM Earnings per share	Rs	-4.7	-0.4
Diluted earnings per share	Rs	-4.7	-0.4
Price to Cash Flow	x	-0.4	-42.3
TTM P/E ratio	x	-0.4	-4.8
Price / Book Value ratio	x	-0.8	-2.6
Market Cap	Rs m	400	830
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GYSCOAL ALLOYS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY22, from 0.5x 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 1.7x during FY22, from -14.0x 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 17.9% during FY22, from 148.3% 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 2.1% during FY22, from 464.1% 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 -7.6% during FY22, from -76.8% 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	0.5	1.0
Debtors’ Days	Days	11,667	3,599
Interest coverage	x	-14.0	1.7
Debt to equity ratio	x	-0.6	-2.4
Return on assets	%	-76.8	-7.6
Return on equity	%	148.3	17.9
Return on capital employed	%	464.1	2.1

To see how GYSCOAL ALLOYS has performed over the last 5 years, please visit here.

GYSCOAL ALLOYS Share Price Performance

Over the last one year, GYSCOAL ALLOYS share price has moved up from Rs 2.4 to Rs 3.0, registering a gain of Rs 0.6 or around 25.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,151.3 (up 0.4%). Over the last one year it has moved down from 20,666.8 to 19,151.3, a loss of 1,515 points (down 7.3%).

Overall, the S&P BSE SENSEX is up 2.7% over the year.

(To know more, check out historical annual results for GYSCOAL ALLOYS and quarterly results for GYSCOAL ALLOYS)