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GOA CARBON 2022-23 Annual Report Analysis

Tue, 1 Aug

GOA CARBON 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.

GOA CARBON Income Statement Analysis

• Operating income during the year rose 78.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 154.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.6% in FY23 as against 7.4% in FY22.
• Depreciation charges increased by 3.5% and finance costs increased by 185.3% YoY, respectively.
• Other income grew by 393.3% YoY.
• Net profit for the year grew by 113.7% YoY.
• Net profit margins during the year grew from 4.9% in FY22 to 5.9% in FY23.

GOA CARBON Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,661	13,644	78.1%
Other income	Rs m	26	126	393.3%
Total Revenues	Rs m	7,687	13,770	79.1%
Gross profit	Rs m	567	1,441	154.2%
Depreciation	Rs m	21	22	3.5%
Interest	Rs m	162	462	185.3%
Profit before tax	Rs m	409	1,082	164.5%
Tax	Rs m	31	275	776.3%
Profit after tax	Rs m	378	808	113.7%
Gross profit margin	%	7.4	10.6
Effective tax rate	%	7.7	25.4
Net profit margin	%	4.9	5.9

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GOA CARBON Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 90.1%.
• Long-term debt down at Rs 90 million as compared to Rs 90 million during FY22, a fall of 0.0%.
• Current assets rose 91% and stood at Rs 7 billion, while fixed assets fell 3% and stood at Rs 512 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 79%.

GOA CARBON Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,146	1,860	62.3
Current Liabilities	Rs m	3,010	5,723	90.1
Long-term Debt	Rs m	90	90	0.0
Total Liabilities	Rs m	4,314	7,732	79.2
Current assets	Rs m	3,789	7,220	90.6
Fixed Assets	Rs m	525	512	-2.6
Total Assets	Rs m	4,314	7,732	79.2

GOA CARBON Cash Flow Statement Analysis

• GOA CARBON's cash flow from operating activities (CFO) during FY23 stood at Rs -1 billion, an improvement of 189.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -197 million 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 -87 million from the Rs 112 million net cash flows seen during FY22.

GOA CARBON 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	-399	-1,156	-
Cash Flow from Investing Activities	Rs m	-1,400	-197	-
Cash Flow from Financing Activities	Rs m	1,911	1,267	-33.7%
Net Cash Flow	Rs m	112	-87	-

Current Valuations for GOA CARBON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 88.3, an improvement from the EPS of Rs 41.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 570.0, stands at 6.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 5.5 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	837.3	1,491.1
TTM Earnings per share	Rs	41.3	88.3
Diluted earnings per share	Rs	41.3	88.2
Price to Cash Flow	x	12.0	5.5
TTM P/E ratio	x	12.6	6.6
Price / Book Value ratio	x	3.5	2.5
Market Cap	Rs m	4,002	4,591
Dividends per share (Unadj.)	Rs	10.0	17.5

Ratio Analysis for GOA CARBON

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.3x 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 3.3x during FY23, from 3.5x 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 improved and stood at 43.4% during FY23, from 33.0% 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 79.2% during FY23, from 46.2% 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 16.4% during FY23, from 12.5% 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	1.3	1.3
Debtors’ Days	Days	134	415
Interest coverage	x	3.5	3.3
Debt to equity ratio	x	0.1	0.0
Return on assets	%	12.5	16.4
Return on equity	%	33.0	43.4
Return on capital employed	%	46.2	79.2

To see how GOA CARBON has performed over the last 5 years, please visit here.

GOA CARBON Share Price Performance

Over the last one year, GOA CARBON share price has moved up from Rs 455.6 to Rs 570.0, registering a gain of Rs 114.4 or around 25.1%.

Overall, the S&P BSE SENSEX is up 17.0% over the year.

(To know more, check out historical annual results for GOA CARBON and quarterly results for GOA CARBON)