INDIA GELAT. 2021-22 Annual Report Analysis

Mon, 5 Sep

INDIA GELAT. 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.

INDIA GELAT. Income Statement Analysis

• Operating income during the year rose 11.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.6% in FY22 as against 5.9% in FY21.
• Depreciation charges decreased by 1.5% and finance costs increased by 13.0% YoY, respectively.
• Other income declined by 18.6% YoY.
• Net profit for the year declined by 21.1% YoY.
• Net profit margins during the year declined from 4.9% in FY21 to 3.5% in FY22.

INDIA GELAT. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,439	1,598	11.1%
Other income	Rs m	47	38	-18.6%
Total Revenues	Rs m	1,485	1,636	10.2%
Gross profit	Rs m	84	73	-13.0%
Depreciation	Rs m	37	36	-1.5%
Interest	Rs m	2	2	13.0%
Profit before tax	Rs m	93	73	-20.9%
Tax	Rs m	22	17	-20.1%
Profit after tax	Rs m	71	56	-21.1%
Gross profit margin	%	5.9	4.6
Effective tax rate	%	23.4	23.6
Net profit margin	%	4.9	3.5

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INDIA GELAT. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 120 million as compared to Rs 72 million in FY21, thereby witnessing an increase of 66.5%.
• Current assets rose 14% and stood at Rs 789 million, while fixed assets fell 0% and stood at Rs 574 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 1 billion during FY21, thereby witnessing a growth of 8%.

INDIA GELAT. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,101	1,147	4.2
Current Liabilities	Rs m	72	120	66.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,267	1,363	7.6
Current assets	Rs m	691	789	14.1
Fixed Assets	Rs m	575	574	-0.2
Total Assets	Rs m	1,267	1,363	7.6

INDIA GELAT. Cash Flow Statement Analysis

• INDIA GELAT.'s cash flow from operating activities (CFO) during FY22 stood at Rs 90 million, an improvement of 46.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -80 million, an improvement of 28.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -19 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -9 million from the Rs -14 million net cash flows seen during FY21.

INDIA GELAT. 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	61	90	46.9%
Cash Flow from Investing Activities	Rs m	-63	-80	-
Cash Flow from Financing Activities	Rs m	-13	-19	-
Net Cash Flow	Rs m	-14	-9	-

Current Valuations for INDIA GELAT.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.9, an decline from the EPS of Rs 10.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 160.7, stands at 14.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 10.3 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	202.9	225.4
TTM Earnings per share	Rs	10.0	7.9
Diluted earnings per share	Rs	10.0	7.9
Price to Cash Flow	x	5.9	10.3
TTM P/E ratio	x	9.0	14.7
Price / Book Value ratio	x	0.6	0.8
Market Cap	Rs m	671	952
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for INDIA GELAT.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.6x during FY22, from 9.6x 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 deteriorated and stood at 39.5x during FY22, from 55.9x 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 declined and down at 4.9% during FY22, from 6.5% 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 declined and down at 6.6% during FY22, from 8.6% 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 4.3% during FY22, from 5.7% 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	9.6	6.6
Debtors’ Days	Days	236	263
Interest coverage	x	55.9	39.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.7	4.3
Return on equity	%	6.5	4.9
Return on capital employed	%	8.6	6.6

To see how INDIA GELAT. has performed over the last 5 years, please visit here.

INDIA GELAT. Share Price Performance

Over the last one year, INDIA GELAT. share price has moved up from Rs 120.6 to Rs 160.7, registering a gain of Rs 40.1 or around 33.3%.

Overall, the S&P BSE SENSEX is up 3.3% over the year.

(To know more, check out historical annual results for INDIA GELAT. and quarterly results for INDIA GELAT.)