GRAPHITE INDIA 2022-23 Annual Report Analysis

Sun, 9 Jul

GRAPHITE INDIA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

GRAPHITE INDIA Income Statement Analysis

• Operating income during the year rose 5.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 43.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.1% in FY23 as against 15.1% in FY22.
• Depreciation charges increased by 3.5% and finance costs increased by 188.6% YoY, respectively.
• Other income declined by 54.8% YoY.
• Net profit for the year declined by 60.5% YoY.
• Net profit margins during the year declined from 16.7% in FY22 to 6.3% in FY23.

GRAPHITE INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	30,265	31,809	5.1%
Other income	Rs m	2,938	1,330	-54.8%
Total Revenues	Rs m	33,203	33,139	-0.2%
Gross profit	Rs m	4,585	2,592	-43.5%
Depreciation	Rs m	551	570	3.5%
Interest	Rs m	46	132	188.6%
Profit before tax	Rs m	6,926	3,219	-53.5%
Tax	Rs m	1,881	1,228	-34.7%
Profit after tax	Rs m	5,045	1,991	-60.5%
Gross profit margin	%	15.1	8.1
Effective tax rate	%	27.2	38.2
Net profit margin	%	16.7	6.3

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GRAPHITE INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 31 billion as compared to Rs 33 billion in FY22, thereby witnessing an decrease of -5.3%.
• Current assets fell 4% and stood at Rs 63 billion, while fixed assets rose 9% and stood at Rs 28 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 91 billion as against Rs 91 billion during FY22, thereby witnessing a fall of 0%.

GRAPHITE INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	49,468	49,638	0.3
Current Liabilities	Rs m	33,187	31,433	-5.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	90,862	90,523	-0.4
Current assets	Rs m	65,628	62,970	-4.0
Fixed Assets	Rs m	25,234	27,553	9.2
Total Assets	Rs m	90,862	90,523	-0.4

GRAPHITE INDIA Cash Flow Statement Analysis

• GRAPHITE INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 3 billion, an improvement of 54.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 231 million from the Rs 685 million net cash flows seen during FY22.

GRAPHITE INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-4,882	-1,604	-
Cash Flow from Investing Activities	Rs m	2,133	3,295	54.5%
Cash Flow from Financing Activities	Rs m	1,045	-2,134	-
Net Cash Flow	Rs m	685	231	-66.2%

Current Valuations for GRAPHITE INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.2, an decline from the EPS of Rs 25.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 405.3, stands at 40.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 32.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	154.9	162.8
TTM Earnings per share	Rs	25.8	10.2
Diluted earnings per share	Rs	25.8	10.2
Price to Cash Flow	x	17.6	32.0
TTM P/E ratio	x	18.9	40.0
Price / Book Value ratio	x	2.4	1.7
Market Cap	Rs m	118,334	81,975
Dividends per share (Unadj.)	Rs	10.0	8.5

Ratio Analysis for GRAPHITE INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY23, from 2.0x during FY22. 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 25.4x during FY23, from 152.6x during FY22. 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 4.0% during FY23, from 10.2% during FY23. 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 6.8% during FY23, from 14.1% during FY22. 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 2.3% during FY23, from 5.6% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.0	2.0
Debtors’ Days	Days	7	6
Interest coverage	x	152.6	25.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.6	2.3
Return on equity	%	10.2	4.0
Return on capital employed	%	14.1	6.8

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

GRAPHITE INDIA Share Price Performance

Over the last one year, GRAPHITE INDIA share price has moved down from Rs 414.2 to Rs 405.3, registering a loss of Rs 8.9 or around 2.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 40,670.4 (down 0.8%). Over the last one year it has moved up from 27,580.5 to 40,670.4, a gain of 13,090 points (up 47.5%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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