GUJARAT ALKALIES 2022-23 Annual Report Analysis

Thu, 14 Sep

GUJARAT ALKALIES 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.

GUJARAT ALKALIES Income Statement Analysis

• Operating income during the year rose 20.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.0% in FY23 as against 26.2% in FY22.
• Depreciation charges increased by 39.6% and finance costs increased by 216.7% YoY, respectively.
• Other income declined by 9.1% YoY.
• Net profit for the year declined by 26.8% YoY.
• Net profit margins during the year declined from 14.9% in FY22 to 9.1% in FY23.

GUJARAT ALKALIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	37,587	45,165	20.2%
Other income	Rs m	464	422	-9.1%
Total Revenues	Rs m	38,051	45,587	19.8%
Gross profit	Rs m	9,840	9,485	-3.6%
Depreciation	Rs m	1,978	2,761	39.6%
Interest	Rs m	61	195	216.7%
Profit before tax	Rs m	8,264	6,951	-15.9%
Tax	Rs m	2,666	2,855	7.1%
Profit after tax	Rs m	5,598	4,096	-26.8%
Gross profit margin	%	26.2	21.0
Effective tax rate	%	32.3	41.1
Net profit margin	%	14.9	9.1

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GUJARAT ALKALIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 7 billion in FY22, thereby witnessing an increase of 14.3%.
• Long-term debt down at Rs 5 billion as compared to Rs 5 billion during FY22, a fall of 16.4%.
• Current assets rose 29% and stood at Rs 14 billion, while fixed assets rose 1% and stood at Rs 69 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 83 billion as against Rs 80 billion during FY22, thereby witnessing a growth of 4%.

GUJARAT ALKALIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	58,993	61,392	4.1
Current Liabilities	Rs m	7,351	8,399	14.3
Long-term Debt	Rs m	5,490	4,589	-16.4
Total Liabilities	Rs m	79,774	83,347	4.5
Current assets	Rs m	10,940	14,098	28.9
Fixed Assets	Rs m	68,834	69,250	0.6
Total Assets	Rs m	79,774	83,347	4.5

GUJARAT ALKALIES Cash Flow Statement Analysis

• GUJARAT ALKALIES's cash flow from operating activities (CFO) during FY23 stood at Rs 10 billion, an improvement of 30.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -7 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs -575 million net cash flows seen during FY22.

GUJARAT ALKALIES 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	7,348	9,600	30.6%
Cash Flow from Investing Activities	Rs m	-8,054	-6,609	-
Cash Flow from Financing Activities	Rs m	117	-1,403	-
Net Cash Flow	Rs m	-575	1,578	-

Current Valuations for GUJARAT ALKALIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 55.8, an decline from the EPS of Rs 76.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 742.5, stands at 17.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 8.6 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	511.8	615.0
TTM Earnings per share	Rs	76.2	55.8
Diluted earnings per share	Rs	76.2	55.8
Price to Cash Flow	x	8.7	8.6
TTM P/E ratio	x	11.7	17.0
Price / Book Value ratio	x	0.8	1.0
Market Cap	Rs m	46,429	58,779
Dividends per share (Unadj.)	Rs	10.0	23.6

Ratio Analysis for GUJARAT ALKALIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY23, from 1.5x 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 36.7x during FY23, from 135.5x 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 6.7% during FY23, from 9.5% 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 10.8% during FY23, from 12.9% 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 declined and down at 5.1% during FY23, from 7.1% 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	1.5	1.7
Debtors’ Days	Days	294	230
Interest coverage	x	135.5	36.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.1	5.1
Return on equity	%	9.5	6.7
Return on capital employed	%	12.9	10.8

To see how GUJARAT ALKALIES has performed over the last 5 years, please visit here.

GUJARAT ALKALIES Share Price Performance

Over the last one year, GUJARAT ALKALIES share price has moved down from Rs 953.3 to Rs 742.5, registering a loss of Rs 210.8 or around 22.1%.

Overall, the S&P BSE SENSEX is up 12.2% over the year.

(To know more, check out historical annual results for GUJARAT ALKALIES and quarterly results for GUJARAT ALKALIES)