GAYATRI SUGAR 2021-22 Annual Report Analysis

Mon, 7 Nov

GAYATRI SUGAR 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.

GAYATRI SUGAR Income Statement Analysis

• Operating income during the year rose 45.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 266.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.4% in FY22 as against 3.0% in FY21.
• Depreciation charges increased by 2.0% and finance costs decreased by 1.7% YoY, respectively.
• Other income grew by 129.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 11.5% in FY21 to 2.3% in FY22.

GAYATRI SUGAR Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,479	3,607	45.5%
Other income	Rs m	2	5	129.0%
Total Revenues	Rs m	2,481	3,612	45.6%
Gross profit	Rs m	73	269	266.7%
Depreciation	Rs m	103	105	2.0%
Interest	Rs m	257	253	-1.7%
Profit before tax	Rs m	-285	-84	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-285	-84	NA
Gross profit margin	%	3.0	7.4
Effective tax rate	%	0.0	0.0
Net profit margin	%	-11.5	-2.3

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GAYATRI SUGAR Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 3 billion as compared to Rs 3 billion in FY21, thereby witnessing an increase of 13.1%.
• Long-term debt down at Rs 745 million as compared to Rs 755 million during FY21, a fall of 1.4%.
• Current assets rose 22% and stood at Rs 1 billion, while fixed assets rose 3% and stood at Rs 906 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 2 billion during FY21, thereby witnessing a growth of 13%.

GAYATRI SUGAR Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-1,531	-1,622	NA
Current Liabilities	Rs m	2,542	2,877	13.1
Long-term Debt	Rs m	755	745	-1.4
Total Liabilities	Rs m	1,828	2,062	12.8
Current assets	Rs m	950	1,156	21.8
Fixed Assets	Rs m	878	906	3.2
Total Assets	Rs m	1,828	2,062	12.8

GAYATRI SUGAR Cash Flow Statement Analysis

• GAYATRI SUGAR's cash flow from operating activities (CFO) during FY22 stood at Rs 552 million, an improvement of 273.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -151 million, an improvement of 1,513.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -407 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -6 million from the Rs -8 million net cash flows seen during FY21.

GAYATRI SUGAR 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	148	552	273.9%
Cash Flow from Investing Activities	Rs m	-9	-151	-
Cash Flow from Financing Activities	Rs m	-146	-407	-
Net Cash Flow	Rs m	-8	-6	-

Current Valuations for GAYATRI SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.9, an improvement from the EPS of Rs -6.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4.0, stands at -1.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.1 times, while the price to sales ratio stands at 0.0 times.
• The company's price to cash flow (P/CF) ratio stood at 7.2 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	56.7	82.5
TTM Earnings per share	Rs	-6.5	-1.9
Diluted earnings per share	Rs	-6.5	-1.9
Price to Cash Flow	x	-0.4	7.2
TTM P/E ratio	x	-0.3	-1.4
Price / Book Value ratio	x	0.0	-0.1
Market Cap	Rs m	66	148
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GAYATRI SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.4x during FY22, from 0.4x 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 0.7x during FY22, from -0.1x 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 5.2% during FY22, from 18.6% 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 -19.2% during FY22, from 3.5% 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 8.2% during FY22, from -1.5% 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	0.4	0.4
Debtors’ Days	Days	330	394
Interest coverage	x	-0.1	0.7
Debt to equity ratio	x	-0.5	-0.5
Return on assets	%	-1.5	8.2
Return on equity	%	18.6	5.2
Return on capital employed	%	3.5	-19.2

To see how GAYATRI SUGAR has performed over the last 5 years, please visit here.

GAYATRI SUGAR Share Price Performance

Over the last one year, GAYATRI SUGAR share price has moved up from Rs 2.6 to Rs 4.0, registering a gain of Rs 1.5 or around 56.6%.

Overall, the S&P BSE SENSEX is up 2.4% over the year.

(To know more, check out historical annual results for GAYATRI SUGAR and quarterly results for GAYATRI SUGAR)

Read: Latest Annual Report Analysis of GAYATRI SUGAR