GALAXY SURFACTANTS 2022-23 Annual Report Analysis

Mon, 17 Jul

GALAXY SURFACTANTS 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.

GALAXY SURFACTANTS Income Statement Analysis

• Operating income during the year rose 20.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.8% in FY23 as against 10.8% in FY22.
• Depreciation charges increased by 17.5% and finance costs increased by 68.9% YoY, respectively.
• Other income declined by 20.6% YoY.
• Net profit for the year grew by 45.0% YoY.
• Net profit margins during the year grew from 7.1% in FY22 to 8.6% in FY23.

GALAXY SURFACTANTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	36,857	44,452	20.6%
Other income	Rs m	136	108	-20.6%
Total Revenues	Rs m	36,993	44,560	20.5%
Gross profit	Rs m	3,996	5,673	42.0%
Depreciation	Rs m	711	835	17.5%
Interest	Rs m	129	217	68.9%
Profit before tax	Rs m	3,293	4,730	43.6%
Tax	Rs m	665	920	38.2%
Profit after tax	Rs m	2,628	3,810	45.0%
Gross profit margin	%	10.8	12.8
Effective tax rate	%	20.2	19.4
Net profit margin	%	7.1	8.6

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GALAXY SURFACTANTS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 7 billion as compared to Rs 9 billion in FY22, thereby witnessing an decrease of -21.4%.
• Long-term debt stood at Rs 891 million as compared to Rs 796 million during FY22, a growth of 11.9%.
• Current assets rose 2% and stood at Rs 16 billion, while fixed assets rose 10% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 27 billion as against Rs 26 billion during FY22, thereby witnessing a growth of 5%.

GALAXY SURFACTANTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	15,744	18,826	19.6
Current Liabilities	Rs m	8,654	6,800	-21.4
Long-term Debt	Rs m	796	891	11.9
Total Liabilities	Rs m	25,967	27,277	5.0
Current assets	Rs m	15,702	16,019	2.0
Fixed Assets	Rs m	10,265	11,258	9.7
Total Assets	Rs m	25,967	27,277	5.0

GALAXY SURFACTANTS Cash Flow Statement Analysis

• GALAXY SURFACTANTS 's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion, an improvement of 11,521.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 76.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs -178 million net cash flows seen during FY22.

GALAXY SURFACTANTS 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	49	5,730	11,521.7%
Cash Flow from Investing Activities	Rs m	-841	-1,486	-
Cash Flow from Financing Activities	Rs m	592	-2,643	-
Net Cash Flow	Rs m	-178	1,681	-

Current Valuations for GALAXY SURFACTANTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 107.5, an improvement from the EPS of Rs 74.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,609.2, stands at 24.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 21.6 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	1,039.7	1,253.9
TTM Earnings per share	Rs	74.1	107.5
Diluted earnings per share	Rs	74.1	107.5
Price to Cash Flow	x	30.4	21.6
TTM P/E ratio	x	38.7	24.3
Price / Book Value ratio	x	6.8	5.3
Market Cap	Rs m	106,612	100,381
Dividends per share (Unadj.)	Rs	18.0	22.0

Ratio Analysis for GALAXY SURFACTANTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY23, from 1.8x 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 22.8x during FY23, from 26.6x 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 20.2% during FY23, from 16.7% 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 25.1% during FY23, from 20.7% 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 14.8% during FY23, from 10.6% 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	1.8	2.4
Debtors’ Days	Days	6	5
Interest coverage	x	26.6	22.8
Debt to equity ratio	x	0.1	0.0
Return on assets	%	10.6	14.8
Return on equity	%	16.7	20.2
Return on capital employed	%	20.7	25.1

To see how GALAXY SURFACTANTS has performed over the last 5 years, please visit here.

GALAXY SURFACTANTS Share Price Performance

Over the last one year, GALAXY SURFACTANTS share price has moved down from Rs 3,053.3 to Rs 2,609.2, registering a loss of Rs 444.1 or around 14.5%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for GALAXY SURFACTANTS and quarterly results for GALAXY SURFACTANTS )