GOODYEAR (I) 2022-23 Annual Report Analysis

Wed, 12 Jul

GOODYEAR (I) 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.

GOODYEAR (I) Income Statement Analysis

• Operating income during the year rose 20.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.1% in FY23 as against 7.1% in FY22.
• Depreciation charges increased by 2.5% and finance costs decreased by 6.1% YoY, respectively.
• Other income declined by 29.7% YoY.
• Net profit for the year grew by 19.4% YoY.
• Net profit margins during the year declined from 4.2% in FY22 to 4.2% in FY23.

GOODYEAR (I) Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	24,357	29,275	20.2%
Other income	Rs m	232	163	-29.7%
Total Revenues	Rs m	24,589	29,438	19.7%
Gross profit	Rs m	1,720	2,069	20.3%
Depreciation	Rs m	527	540	2.5%
Interest	Rs m	41	39	-6.1%
Profit before tax	Rs m	1,385	1,654	19.5%
Tax	Rs m	356	425	19.6%
Profit after tax	Rs m	1,029	1,229	19.4%
Gross profit margin	%	7.1	7.1
Effective tax rate	%	25.7	25.7
Net profit margin	%	4.2	4.2

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GOODYEAR (I) Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 1.2%.
• Current assets fell 18% and stood at Rs 8 billion, while fixed assets rose 11% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 19 billion as against Rs 20 billion during FY22, thereby witnessing a fall of 3%.

GOODYEAR (I) Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,148	6,058	-15.3
Current Liabilities	Rs m	6,124	6,197	1.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	19,710	19,093	-3.1
Current assets	Rs m	9,636	7,938	-17.6
Fixed Assets	Rs m	10,074	11,156	10.7
Total Assets	Rs m	19,710	19,093	-3.1

GOODYEAR (I) Cash Flow Statement Analysis

• GOODYEAR (I)'s cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 25.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 906 million 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 -380 million from the Rs -2 billion net cash flows seen during FY22.

GOODYEAR (I) 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	893	1,122	25.6%
Cash Flow from Investing Activities	Rs m	-500	906	-
Cash Flow from Financing Activities	Rs m	-2,365	-2,407	-
Net Cash Flow	Rs m	-1,971	-380	-

Current Valuations for GOODYEAR (I)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 53.3, an improvement from the EPS of Rs 44.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,303.0, stands at 24.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 13.3 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	1,055.8	1,269.0
TTM Earnings per share	Rs	44.6	53.3
Diluted earnings per share	Rs	44.6	53.3
Price to Cash Flow	x	13.2	13.3
TTM P/E ratio	x	19.9	24.5
Price / Book Value ratio	x	3.5	3.9
Market Cap	Rs m	25,101	23,609
Dividends per share (Unadj.)	Rs	100.0	26.5

Ratio Analysis for GOODYEAR (I)

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.6x 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 improved and stood at 43.7x during FY23, from 34.6x 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 improved and stood at 20.3% during FY23, from 14.4% 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 improved and stood at 27.9% during FY23, from 19.9% 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 improved and stood at 6.6% during FY23, from 5.4% 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	1.6	1.3
Debtors’ Days	Days	375	401
Interest coverage	x	34.6	43.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.4	6.6
Return on equity	%	14.4	20.3
Return on capital employed	%	19.9	27.9

To see how GOODYEAR (I) has performed over the last 5 years, please visit here.

GOODYEAR (I) Share Price Performance

Over the last one year, GOODYEAR (I) share price has moved up from Rs 1,099.6 to Rs 1,303.0, registering a gain of Rs 203.4 or around 18.5%.

Overall, the S&P BSE SENSEX is up 20.5% over the year.

(To know more, check out historical annual results for GOODYEAR (I) and quarterly results for GOODYEAR (I))