GUJARAT GAS 2020-21 Annual Report Analysis
Fri, 22 Oct

GUJARAT GAS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

GUJARAT GAS Income Statement Analysis

  • Operating income during the year fell 4.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 27.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.8% in FY21 as against 16.3% in FY20.
  • Depreciation charges increased by 7.2% and finance costs decreased by 34.7% YoY, respectively.
  • Other income declined by 11.6% YoY.
  • Net profit for the year grew by 6.4% YoY.
  • Net profit margins during the year grew from 11.8% in FY20 to 13.1% in FY21.

GUJARAT GAS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 100,742 96,662 -4.0%
Other income Rs m 839 742 -11.6%
Total Revenues Rs m 101,581 97,404 -4.1%
Gross profit Rs m 16,470 21,054 27.8%
Depreciation Rs m 3,180 3,408 7.2%
Interest Rs m 2,050 1,339 -34.7%
Profit before tax Rs m 12,080 17,048 41.1%
Tax Rs m 92 4,292 4,585.8%
Profit after tax Rs m 11,989 12,756 6.4%
Gross profit margin % 16.3 21.8
Effective tax rate % 0.8 25.2
Net profit margin % 11.8 13.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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GUJARAT GAS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 22 billion as compared to Rs 18 billion in FY20, thereby witnessing an increase of 21.6%.
  • Long-term debt down at Rs 8 billion as compared to Rs 18 billion during FY20, a fall of 58.0%.
  • Current assets fell 2% and stood at Rs 14 billion, while fixed assets rose 9% and stood at Rs 71 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 85 billion as against Rs 79 billion during FY20, thereby witnessing a growth of 7%.

GUJARAT GAS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 33,174 45,116 36.0
 
Current Liabilities Rs m 18,193 22,122 21.6
Long-term Debt Rs m 18,344 7,700 -58.0
Total Liabilities Rs m 79,254 84,797 7.0
 
Current assets Rs m 14,403 14,120 -2.0
Fixed Assets Rs m 64,852 70,678 9.0
Total Assets Rs m 79,254 84,797 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



GUJARAT GAS Cash Flow Statement Analysis

  • GUJARAT GAS's cash flow from operating activities (CFO) during FY21 stood at Rs 17 billion, an improvement of 16.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -6 billion, an improvement of 30.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -13 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -3 billion from the Rs 5 billion net cash flows seen during FY20.

GUJARAT GAS Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 14,198 16,552 16.6%
Cash Flow from Investing Activities Rs m -4,665 -6,103 -
Cash Flow from Financing Activities Rs m -5,024 -13,177 -
Net Cash Flow Rs m 4,510 -2,728 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GUJARAT GAS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.5, an improvement from the EPS of Rs 17.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 617.7, stands at 25.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 2.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 26.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 146.3 140.4
TTM Earnings per share Rs 17.4 18.5
Diluted earnings per share Rs 17.4 18.5
Price to Cash Flow x 28.0 26.3
TTM P/E ratio x 25.1 25.1
Price / Book Value ratio x 4.8 6.0
Market Cap Rs m 425,184 425,184
Dividends per share (Unadj.) Rs 1.3 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GUJARAT GAS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY21, from 0.8x during FY20. 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 13.7x during FY21, from 6.9x during FY20. 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 28.3% during FY21, from 36.1% during FY21. 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 34.8% during FY21, from 27.4% during FY20. 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 16.6% during FY21, from 17.7% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 0.8 0.6
Debtors’ Days Days 2 3
Interest coverage x 6.9 13.7
Debt to equity ratio x 0.6 0.2
Return on assets % 17.7 16.6
Return on equity % 36.1 28.3
Return on capital employed % 27.4 34.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how GUJARAT GAS has performed over the last 5 years, please visit here.

GUJARAT GAS Share Price Performance

Over the last one year, GUJARAT GAS share price has moved up from Rs 288.0 to Rs 617.7, registering a gain of Rs 329.7 or around 114.5%.

Overall, the S&P BSE SENSEX is up 50.6% over the year.

(To know more, check out historical annual results for GUJARAT GAS and quarterly results for GUJARAT GAS)