Gayatri Projects Ltd

Gayatri Projects Ltd exhibits a highly leveraged capital structure, with total liabilities of INR 49.63 billion and total equity of INR -15.55 billion, resulting in a negative net worth. The company's liquidity position is weak, as evidenced by a current ratio of 0.5 and negative operating cash flow of INR -1.12 billion. The debt-to-equity ratio of -2.36 indicates a significant reliance on debt financing, which is further exacerbated by the absence of positive net cash.

Profitability metrics are mixed. The company reported a net income of INR 877.72 million, but its return on equity is negative at -5.64%, reflecting the impact of its negative equity base. Return on assets is positive at 2.58%, suggesting that the company is generating a modest return on its asset base. However, the gross profit margin of 14.7% is below the industry median of 18.2%, indicating potential inefficiencies in cost management or pricing power.

The company's revenue is concentrated in a few key segments, with the construction and engineering segment accounting for 85% of total revenue. Geographically, the company is heavily exposed to India, where it operates all its major projects. This concentration increases vulnerability to local economic and regulatory shifts.

Looking ahead, the company is projected to see a 12% year-over-year revenue increase in the current fiscal year, driven by new project awards. However, the next fiscal year is expected to show a 5% decline, primarily due to the completion of large-scale projects and a slowdown in government infrastructure spending.

The company faces several risk factors, including liquidity constraints and a high debt burden. The risk assessment indicates a medium liquidity risk, with the company's cash and equivalents of INR 372.08 million insufficient to cover its short-term obligations. The dilution risk is currently low, as the company has not issued additional shares in the past year, and there are no immediate plans for a public offering.

Recent events include the filing of its latest annual report, which disclosed a strategic shift towards diversifying into renewable energy projects. The company also announced the completion of a major infrastructure contract in Rajasthan, which contributed to the recent revenue growth.

Free cash flow surged 106.3% year-over-year to INR 905.6 million, demonstrating strong cash generation capability.

Net income grew 102.8% year-over-year, signaling a robust recovery from previous fiscal period losses.

Negative debt-to-equity ratio of -2.36 suggests a net cash position, ranking best-in-class within the cohort.

The company faces high credit risk, posing potential challenges for debt servicing and financial stability.

Cash conversion ratio of -1.27 ranks in the bottom quartile, suggesting poor efficiency in converting profits to cash.

Negative book value of INR 15.6 billion indicates accumulated losses exceeding total equity over the period.

Revenue INR 5.06B, +456,9% YoY; Operating income +85 881,3% YoY.

• ▍Revenue INR 5.06B, +456,9% YoY
• ▍Operating income +85 881,3% YoY
• ▍Net income +109 580,0% YoY
• ▍Net margin 426.4%

Revenue INR 731.3M, −28,7% YoY; Operating income +42,7% YoY.

• ▍Revenue INR 731.3M, −28,7% YoY
• ▍Operating income +42,7% YoY
• ▍Net income +83,1% YoY
• ▍Net margin -4.6%

Revenue INR 1.37B, −16,6% YoY; Operating income −157,9% YoY.

• ▍Revenue INR 1.37B, −16,6% YoY
• ▍Operating income −157,9% YoY
• ▍Net income +80,8% YoY
• ▍Net margin 115.7%

Revenue INR 4.50B, −33,8% YoY; Operating income −226,6% YoY.

• ▍Revenue INR 4.50B, −33,8% YoY
• ▍Operating income −226,6% YoY
• ▍Net income +198,8% YoY
• ▍Free cash flow +81,3% YoY
• ▍Net margin 27.5%