TAJ GVK 2019-20 Annual Report Analysis

Fri, 11 Dec

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 6.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.5% in FY20 as against 21.8% in FY19.
• Depreciation charges decreased by 4.3% and finance costs increased by 4.9% YoY, respectively.
• Other income declined by 83.1% YoY.
• Net profit for the year declined by 1.9% YoY.
• Net profit margins during the year grew from 7.5% in FY19 to 7.6% in FY20.

TAJ GVK Income Statement 2019-20

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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 4% and stood at Rs 5 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

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

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 141.7, stands at 37.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 22.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

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

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 159.0 to Rs 141.7, registering a loss of Rs 17.3 or around 10.9%.

Overall, the S&P BSE SENSEX is up 13.9% over the year.

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