TAJ GVK 2019-20 Annual Report Analysis

Tue, 31 Mar

TAJ GVK has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

TAJ GVK Income Statement Analysis

• Operating income during the year fell 1.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.7% in FY20 as against 21.8% in FY19.
• Depreciation charges increased by 0.5% and finance costs increased by 4.8% YoY, respectively.
• Other income declined by 83.0% YoY.
• Net profit for the year declined by 1.9% YoY.
• Net profit margins during the year declined from 7.7% in FY19 to 7.6% in FY20.

TAJ GVK Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	3,169	3,126	-1.3%
Other income	Rs m	72	12	-83.0%
Total Revenues	Rs m	3,241	3,138	-3.2%
Gross profit	Rs m	692	741	7.1%
Depreciation	Rs m	167	168	0.5%
Interest	Rs m	216	226	4.8%
Profit before tax	Rs m	381	359	-5.7%
Tax	Rs m	138	121	-12.5%
Profit after tax	Rs m	243	239	-1.9%
Gross profit margin	%	21.8	23.7
Effective tax rate	%	36.2	33.6
Net profit margin	%	7.7	7.6

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TAJ GVK Balance Sheet Analysis

• The company's current liabilities during FY20 down at Rs 832 million as compared to Rs 932 million in FY19, thereby witnessing an decrease of -10.8%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY19, a fall of 12.3%.
• Current assets rose 15% and stood at Rs 490 million, while fixed assets rose 3% and stood at Rs 7 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 7 billion as against Rs 7 billion during FY19, thereby witnessing a growth of 4%.

TAJ GVK Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	3,919	4,067	3.8
Current Liabilities	Rs m	932	832	-10.8
Long-term Debt	Rs m	1,601	1,404	-12.3
Total Liabilities	Rs m	7,107	7,381	3.9
Current assets	Rs m	426	490	14.9
Fixed Assets	Rs m	6,681	6,892	3.1
Total Assets	Rs m	7,107	7,381	3.9

TAJ GVK Cash Flow Statement Analysis

• TAJ GVK's cash flow from operating activities (CFO) during FY20 stood at Rs 746 million, an improvement of 26.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -29 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -658 million on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs 59 million from the Rs -134 million net cash flows seen during FY19.

TAJ GVK Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-19	Mar-20
Cash Flow from Operating Activities	Rs m	590	746	26.5%
Cash Flow from Investing Activities	Rs m	-162	-29	-
Cash Flow from Financing Activities	Rs m	-561	-658	-
Net Cash Flow	Rs m	-134	59	-

Current Valuations for TAJ GVK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.8, an decline from the EPS of Rs 3.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 102.6, stands at 26.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 25.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Sales per share (Unadj.)	Rs	50.5	49.9
TTM Earnings per share	Rs	3.9	3.8
Diluted earnings per share	Rs	3.9	3.8
Price to Cash Flow	x	36.3	25.0
TTM P/E ratio	x	62.8	26.9
Price / Book Value ratio	x	3.2	2.5
Market Cap	Rs m	12,637	10,167
Dividends per share (Unadj.)	Rs	0.6	0.0

Ratio Analysis for TAJ GVK

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY20, from 0.5x during FY19. 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 deteriorated and stood at 2.6x during FY20, from 2.8x during FY19. 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 5.9% during FY20, from 6.2% during FY20. 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 10.7% during FY20, from 10.8% during FY19. 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 6.3% during FY20, from 6.5% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Current ratio	x	0.5	0.6
Debtors’ Days	Days	215	183
Interest coverage	x	2.8	2.6
Debt to equity ratio	x	0.4	0.3
Return on assets	%	6.5	6.3
Return on equity	%	6.2	5.9
Return on capital employed	%	10.8	10.7

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

TAJ GVK Share Price Performance

Over the last one year, TAJ GVK share price has moved down from Rs 237.5 to Rs 102.6, registering a loss of Rs 134.9 or around 56.8%.

Overall, the S&P BSE SENSEX is down 24.2% over the year.

(To know more, check out historical annual results for TAJ GVK and quarterly results for TAJ GVK)

Read: Latest Annual Report Analysis of TAJ GVK