GAIL 2019-20 Annual Report Analysis

GAIL Income Statement Analysis

 Operating income during the year fell 4.8% on a year-on-year (YoY) basis.
 The company's operating profit decreased by 6.6% YoY during the fiscal. Operating profit
margins witnessed a fall and stood at 12.4% in FY20 as against 12.7% in FY19.
 Depreciation charges increased by 24.8% and finance costs increased by 94.1% YoY,
respectively.
 Other income grew by 27.4% YoY.
 Net profit for the year grew by 45.2% YoY.
 Net profit margins during the year grew from 8.5% in FY19 to 12.8% in FY20.

GAIL Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change

Net Sales Rs m 761,899 725,084 -4.8%

Other income Rs m 12,143 15,464 27.4%

Total Revenues Rs m 774,042 740,549 -4.3%

Gross profit Rs m 96,676 90,250 -6.6%

Depreciation Rs m 16,666 20,802 24.8%

Interest Rs m 1,592 3,089 94.1%

Profit before tax Rs m 90,560 81,823 -9.6%

Tax Rs m 32,784 9,143 -72.1%

Profit after tax Rs m 65,528 95,146 45.2%

Gross profit margin % 12.7 12.4

Effective tax rate % 36.2 11.2

12.8
Net profit margin % 8.5
GAIL Balance Sheet Analysis

 The company's current liabilities during FY20 stood at Rs 125 billion as compared to Rs
107 billion in FY19, thereby witnessing an increase of 17.0%.
 Long-term debt stood at Rs 38 billion as compared to Rs 10 billion during FY19, a growth
of 267.1%.
 Current assets rose 9% and stood at Rs 120 billion, while fixed assets rose 18% and stood
at Rs 499 billion in FY20.
 Overall, the total assets and liabilities for FY20 stood at Rs 749 billion as against Rs 684
billion during FY19, thereby witnessing a growth of 10%.

GAIL Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change

Networth Rs m 460,041 492,683 7.1

Current Liabilities Rs m 106,600 124,762 17.0

Long-term Debt Rs m 10,278 37,734 267.1

Total Liabilities Rs m 684,074 749,142 9.5

Current assets Rs m 110,486 119,944 8.6

Fixed Assets Rs m 424,378 498,959 17.6

Total Assets Rs m 684,074 749,142 9.5

GAIL Cash Flow Statement Analysis

 GAIL's cash flow from operating activities (CFO) during FY20 stood at Rs 83 billion, an
improvement of 4.5% on a YoY basis.
 Cash flow from investing activities (CFI) during FY20 stood at Rs -74 billion, an
improvement of 30.5% on a YoY basis.
 Cash flow from financial activities (CFF) during FY20 stood at Rs 3 billion, an improvement
of 108% on a YoY basis.
 Overall, net cash flows for the company during FY20 stood at Rs 3 billion from the Rs -11
billion net cash flows seen during FY19.

GAIL Cash Flow Statement 2019-20

No. of months 12 12
Particulars % Change
Year Ending Mar-19 Mar-20

Cash Flow from Operating Activities Rs m 79,842 83,454 4.5%

Cash Flow from Investing Activities Rs m -57,066 -74,446 -

Cash Flow from Financing Activities Rs m -33,643 2,812 -

Net Cash Flow Rs m -10,806 3,275 -

GAIL 2020-21 Annual Report Analysis

GAIL Income Statement Analysis

 Operating income during the year fell 20.9% on a year-on-year (YoY) basis.
 The company's operating profit decreased by 18.0% YoY during the fiscal. Operating profit
margins witnessed a fall and down at 12.6% in FY21 as against 12.2% in FY20.
 Depreciation charges increased by 4.5% and finance costs decreased by 42.0% YoY,
respectively.
 Other income declined by 35.5% YoY.
 Net profit for the year declined by 39.1% YoY.
 Net profit margins during the year declined from 9.8% in FY20 to 7.6% in FY21.

GAIL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change

Net Sales Rs m 724,584 573,156 -20.9%

Other income Rs m 17,362 11,202 -35.5%

Total Revenues Rs m 741,946 584,358 -21.2%

Gross profit Rs m 88,353 72,438 -18.0%

Depreciation Rs m 20,802 21,738 4.5%

Interest Rs m 3,089 1,793 -42.0%

Profit before tax Rs m 81,823 60,109 -26.5%

Tax Rs m 9,143 15,826 73.1%

Profit after tax Rs m 72,680 44,282 -39.1%

Gross profit margin % 12.2 12.6

 Effective tax rate % 11.2 26.3

7.6
Net profit margin % 9.8

GAIL Balance Sheet Analysis

 The company's current liabilities during FY21 stood at Rs 126 billion as compared to Rs
125 billion in FY20, thereby witnessing an increase of 0.6%.
 Long-term debt stood at Rs 52 billion as compared to Rs 38 billion during FY20, a growth
of 38.8%.
 Current assets fell 7% and stood at Rs 109 billion, while fixed assets rose 11% and stood
at Rs 722 billion in FY21.
 Overall, the total assets and liabilities for FY21 stood at Rs 830 billion as against Rs 769
billion during FY20, thereby witnessing a growth of 8%.

GAIL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change

Networth Rs m 492,683 531,823 7.9

Current Liabilities Rs m 124,762 125,523 0.6

Long-term Debt Rs m 37,734 52,374 38.8

Total Liabilities Rs m 768,842 830,173 8.0

Current assets Rs m 116,569 108,672 -6.8

 Fixed Assets Rs m 652,274 721,501 10.6

Total Assets Rs m 768,842 830,173 8.0

GAIL Cash Flow Statement Analysis

 GAIL's cash flow from operating activities (CFO) during FY21 stood at Rs 90 billion, an
improvement of 7.8% on a YoY basis.
 Cash flow from investing activities (CFI) during FY21 stood at Rs -47 billion on a YoY
basis.
 Cash flow from financial activities (CFF) during FY21 stood at Rs -35 billion on a YoY
basis.
 Overall, net cash flows for the company during FY21 stood at Rs 9 billion from the Rs 3
billion net cash flows seen during FY20.

GAIL Cash Flow Statement 2020-21

No. of months 12 12
Particulars % Change
Year Ending Mar-20 Mar-21

Cash Flow from Operating Activities Rs m 83,454 89,934 7.8%

Cash Flow from Investing Activities Rs m -74,446 -46,930 -

Cash Flow from Financing Activities Rs m 2,812 -34,706 -

Net Cash Flow Rs m 3,275 8,825 169.5%