GRETEX CORPORATE 2022-23 Annual Report Analysis

Wed, 21 Jun

GRETEX CORPORATE 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.

GRETEX CORPORATE Income Statement Analysis

• Operating income during the year rose 205.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 351.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 51.2% in FY23 as against 34.6% in FY22.
• Depreciation charges increased by 50.6% and finance costs decreased by 21.3% YoY, respectively.
• Other income grew by 329.8% YoY.
• Net profit for the year grew by 328.0% YoY.
• Net profit margins during the year grew from 36.9% in FY22 to 51.7% in FY23.

GRETEX CORPORATE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	41	126	205.4%
Other income	Rs m	6	26	329.8%
Total Revenues	Rs m	47	153	221.4%
Gross profit	Rs m	14	65	351.1%
Depreciation	Rs m	2	3	50.6%
Interest	Rs m	3	2	-21.3%
Profit before tax	Rs m	16	86	446.5%
Tax	Rs m	0	21	4,134.7%
Profit after tax	Rs m	15	65	328.0%
Gross profit margin	%	34.6	51.2
Effective tax rate	%	3.1	24.1
Net profit margin	%	36.9	51.7

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GRETEX CORPORATE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 58 million as compared to Rs 10 million in FY22, thereby witnessing an increase of 507.3%.
• Current assets rose 435% and stood at Rs 115 million, while fixed assets rose 67% and stood at Rs 294 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 409 million as against Rs 198 million during FY22, thereby witnessing a growth of 107%.

GRETEX CORPORATE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	136	312	130.0
Current Liabilities	Rs m	10	58	507.3
Long-term Debt	Rs m	18	0	-100.0
Total Liabilities	Rs m	198	409	106.8
Current assets	Rs m	22	115	435.0
Fixed Assets	Rs m	176	294	66.8
Total Assets	Rs m	198	409	106.8

GRETEX CORPORATE Cash Flow Statement Analysis

• GRETEX CORPORATE's cash flow from operating activities (CFO) during FY23 stood at Rs 201 million, an improvement of 985.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -172 million, an improvement of 297.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -21 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 7 million from the Rs 4 million net cash flows seen during FY22.

GRETEX CORPORATE 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	18	201	985.2%
Cash Flow from Investing Activities	Rs m	-43	-172	-
Cash Flow from Financing Activities	Rs m	29	-21	-
Net Cash Flow	Rs m	4	7	64.9%

Current Valuations for GRETEX CORPORATE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.4, an decline from the EPS of Rs 13.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 290.0, stands at 45.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.5 times, while the price to sales ratio stands at 23.5 times.
• The company's price to cash flow (P/CF) ratio stood at 17.0 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	36.3	12.3
TTM Earnings per share	Rs	13.4	6.4
Diluted earnings per share	Rs	1.5	6.4
Price to Cash Flow	x	13.1	17.0
TTM P/E ratio	x	14.5	45.5
Price / Book Value ratio	x	0.2	3.7
Market Cap	Rs m	23	1,150
Dividends per share (Unadj.)	Rs	0.0	0.5

Ratio Analysis for GRETEX CORPORATE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY23, from 2.2x 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 37.3x during FY23, from 6.2x 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 20.9% during FY23, from 11.2% 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 improved and stood at 28.3% during FY23, from 12.2% 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 16.5% during FY23, from 9.2% 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	2.2	2.0
Debtors’ Days	Days	43,046	16,632
Interest coverage	x	6.2	37.3
Debt to equity ratio	x	0.1	0.0
Return on assets	%	9.2	16.5
Return on equity	%	11.2	20.9
Return on capital employed	%	12.2	28.3

To see how GRETEX CORPORATE has performed over the last 5 years, please visit here.

GRETEX CORPORATE Share Price Performance

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(To know more, check out historical annual results for GRETEX CORPORATE and quarterly results for GRETEX CORPORATE)