TAJ GVK 2021-22 Annual Report Analysis

Tue, 6 Sep

TAJ GVK 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.

TAJ GVK Income Statement Analysis

• Operating income during the year rose 141.1% 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 22.8% in FY22 as against 2.3% in FY21.
• Depreciation charges decreased by 6.2% and finance costs decreased by 6.6% YoY, respectively.
• Other income declined by 55.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 28.1% in FY21 to 4.4% in FY22.

TAJ GVK Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	942	2,271	141.1%
Other income	Rs m	26	12	-55.4%
Total Revenues	Rs m	968	2,283	135.8%
Gross profit	Rs m	-22	517	NA
Depreciation	Rs m	166	155	-6.2%
Interest	Rs m	199	186	-6.6%
Profit before tax	Rs m	-360	187	NA
Tax	Rs m	-96	88	NA
Profit after tax	Rs m	-264	99	NA
Gross profit margin	%	-2.3	22.8
Effective tax rate	%	26.5	47.1
Net profit margin	%	-28.1	4.4

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TAJ GVK Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 1 billion as compared to Rs 1 billion in FY21, thereby witnessing an increase of 12.1%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY21, a fall of 13.6%.
• Current assets rose 59% and stood at Rs 718 million, while fixed assets fell 4% and stood at Rs 6 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 7 billion as against Rs 7 billion during FY21, thereby witnessing a growth of 0%.

TAJ GVK Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	3,671	3,683	0.3
Current Liabilities	Rs m	1,071	1,200	12.1
Long-term Debt	Rs m	1,367	1,181	-13.6
Total Liabilities	Rs m	7,046	7,050	0.0
Current assets	Rs m	450	718	59.4
Fixed Assets	Rs m	6,596	6,332	-4.0
Total Assets	Rs m	7,046	7,050	0.0

TAJ GVK Cash Flow Statement Analysis

• TAJ GVK's cash flow from operating activities (CFO) during FY22 stood at Rs 531 million, an improvement of 897.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 5 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -305 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 231 million from the Rs 31 million net cash flows seen during FY21.

TAJ GVK 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	53	531	897.8%
Cash Flow from Investing Activities	Rs m	-5	5	-
Cash Flow from Financing Activities	Rs m	-17	-305	-
Net Cash Flow	Rs m	31	231	634.7%

Current Valuations for TAJ GVK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.6, an improvement from the EPS of Rs -4.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 180.0, stands at 32.4 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 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 32.5 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	15.0	36.2
TTM Earnings per share	Rs	-4.2	1.6
Diluted earnings per share	Rs	-4.2	1.6
Price to Cash Flow	x	-69.2	32.5
TTM P/E ratio	x	-25.9	32.4
Price / Book Value ratio	x	2.4	2.2
Market Cap	Rs m	8,907	8,256
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TAJ GVK

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x 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 2.0x during FY22, from -0.8x 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 improved and stood at 2.7% during FY22, from -7.2% 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 improved and stood at 7.7% during FY22, from -3.2% 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 4.0% during FY22, from -0.9% 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	0.6
Debtors’ Days	Days	366	154
Interest coverage	x	-0.8	2.0
Debt to equity ratio	x	0.4	0.3
Return on assets	%	-0.9	4.0
Return on equity	%	-7.2	2.7
Return on capital employed	%	-3.2	7.7

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 up from Rs 125.8 to Rs 180.0, registering a gain of Rs 54.3 or around 43.1%.

Overall, the S&P BSE SENSEX is up 2.6% 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