GODAVARI DRU 2021-22 Annual Report Analysis

Fri, 20 May

GODAVARI DRU 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.

GODAVARI DRU Income Statement Analysis

• Operating income during the year rose 31.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.0% in FY22 as against 8.0% in FY21.
• Depreciation charges increased by 38.7% and finance costs decreased by 14.2% YoY, respectively.
• Other income declined by 32.7% YoY.
• Net profit for the year grew by 27.1% YoY.
• Net profit margins during the year declined from 3.4% in FY21 to 3.3% in FY22.

GODAVARI DRU Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,227	1,611	31.3%
Other income	Rs m	4	3	-32.7%
Total Revenues	Rs m	1,231	1,614	31.1%
Gross profit	Rs m	98	113	14.7%
Depreciation	Rs m	12	17	38.7%
Interest	Rs m	33	28	-14.2%
Profit before tax	Rs m	57	70	23.0%
Tax	Rs m	16	18	12.5%
Profit after tax	Rs m	41	52	27.1%
Gross profit margin	%	8.0	7.0
Effective tax rate	%	27.7	25.3
Net profit margin	%	3.4	3.3

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GODAVARI DRU Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 578 million as compared to Rs 505 million in FY21, thereby witnessing an increase of 14.4%.
• Long-term debt down at Rs 118 million as compared to Rs 145 million during FY21, a fall of 18.7%.
• Current assets rose 10% and stood at Rs 743 million, while fixed assets rose 15% and stood at Rs 271 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 911 million during FY21, thereby witnessing a growth of 11%.

GODAVARI DRU Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	244	296	21.5
Current Liabilities	Rs m	505	578	14.4
Long-term Debt	Rs m	145	118	-18.7
Total Liabilities	Rs m	911	1,014	11.3
Current assets	Rs m	676	743	9.9
Fixed Assets	Rs m	235	271	15.1
Total Assets	Rs m	911	1,014	11.3

GODAVARI DRU Cash Flow Statement Analysis

• GODAVARI DRU's cash flow from operating activities (CFO) during FY22 stood at Rs 112 million, an improvement of 745.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -50 million, an improvement of 297.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -56 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 6 million from the Rs 2 million net cash flows seen during FY21.

GODAVARI DRU 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	13	112	745.6%
Cash Flow from Investing Activities	Rs m	-13	-50	-
Cash Flow from Financing Activities	Rs m	1	-56	-
Net Cash Flow	Rs m	2	6	200.9%

Current Valuations for GODAVARI DRU

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.0, an improvement from the EPS of Rs 5.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 68.9, stands at 9.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.0 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	162.9	214.0
TTM Earnings per share	Rs	5.5	7.0
Diluted earnings per share	Rs	5.5	7.0
Price to Cash Flow	x	6.4	7.0
TTM P/E ratio	x	8.3	9.9
Price / Book Value ratio	x	1.1	1.6
Market Cap	Rs m	262	483
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GODAVARI DRU

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY22, from 1.3x 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 3.5x during FY22, from 2.7x 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 17.7% during FY22, from 16.9% 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 23.8% during FY22, from 23.2% 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 declined and down at 8.0% during FY22, from 8.2% 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	1.3	1.3
Debtors’ Days	Days	1,343	1,259
Interest coverage	x	2.7	3.5
Debt to equity ratio	x	0.6	0.4
Return on assets	%	8.2	8.0
Return on equity	%	16.9	17.7
Return on capital employed	%	23.2	23.8

To see how GODAVARI DRU has performed over the last 5 years, please visit here.

GODAVARI DRU Share Price Performance

Over the last one year, GODAVARI DRU share price has moved up from Rs 60.7 to Rs 68.9, registering a gain of Rs 8.2 or around 13.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,921.0 (up 3.0%). Over the last one year it has moved down from 24,360.6 to 22,921.0, a loss of 1,440 points (down 5.9%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

(To know more, check out historical annual results for GODAVARI DRU and quarterly results for GODAVARI DRU)