GODFREY PHILLIPS 2021-22 Annual Report Analysis

Sat, 20 Aug

GODFREY PHILLIPS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

GODFREY PHILLIPS Income Statement Analysis

• Operating income during the year rose 2.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.5% in FY22 as against 25.9% in FY21.
• Depreciation charges increased by 2.8% and finance costs increased by 10.0% YoY, respectively.
• Other income declined by 3.8% YoY.
• Net profit for the year grew by 16.2% YoY.
• Net profit margins during the year grew from 18.0% in FY21 to 20.4% in FY22.

GODFREY PHILLIPS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	20,893	21,465	2.7%
Other income	Rs m	1,186	1,141	-3.8%
Total Revenues	Rs m	22,078	22,606	2.4%
Gross profit	Rs m	5,414	6,333	17.0%
Depreciation	Rs m	1,413	1,452	2.8%
Interest	Rs m	308	339	10.0%
Profit before tax	Rs m	4,878	5,683	16.5%
Tax	Rs m	1,108	1,302	17.5%
Profit after tax	Rs m	3,770	4,381	16.2%
Gross profit margin	%	25.9	29.5
Effective tax rate	%	22.7	22.9
Net profit margin	%	18.0	20.4

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GODFREY PHILLIPS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 8 billion as compared to Rs 8 billion in FY21, thereby witnessing an increase of 4.0%.
• Long-term debt stood at Rs 11 million as compared to Rs 10 million during FY21, a growth of 10.4%.
• Current assets rose 8% and stood at Rs 16 billion, while fixed assets rose 11% and stood at Rs 25 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 41 billion as against Rs 37 billion during FY21, thereby witnessing a growth of 10%.

GODFREY PHILLIPS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	25,821	29,276	13.4
Current Liabilities	Rs m	7,906	8,223	4.0
Long-term Debt	Rs m	10	11	10.4
Total Liabilities	Rs m	37,317	41,016	9.9
Current assets	Rs m	15,238	16,486	8.2
Fixed Assets	Rs m	22,080	24,530	11.1
Total Assets	Rs m	37,317	41,016	9.9

GODFREY PHILLIPS Cash Flow Statement Analysis

• GODFREY PHILLIPS's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion, an improvement of 54.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 63 million from the Rs -37 million net cash flows seen during FY21.

GODFREY PHILLIPS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	3,098	4,786	54.5%
Cash Flow from Investing Activities	Rs m	-2,976	-2,343	-
Cash Flow from Financing Activities	Rs m	-159	-2,380	-
Net Cash Flow	Rs m	-37	63	-

Current Valuations for GODFREY PHILLIPS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 84.3, an improvement from the EPS of Rs 72.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,160.9, stands at 13.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 10.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	401.9	412.9
TTM Earnings per share	Rs	72.5	84.3
Diluted earnings per share	Rs	72.5	84.3
Price to Cash Flow	x	9.2	10.0
TTM P/E ratio	x	12.6	13.2
Price / Book Value ratio	x	2.0	2.0
Market Cap	Rs m	50,604	58,277
Dividends per share (Unadj.)	Rs	24.0	28.0

Ratio Analysis for GODFREY PHILLIPS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY22, from 1.9x during FY21. 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 17.7x during FY22, from 16.8x during FY21. 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 15.0% during FY22, from 14.6% during FY22. 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 20.6% during FY22, from 20.1% during FY21. 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 11.5% during FY22, from 10.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.9	2.0
Debtors’ Days	Days	215	263
Interest coverage	x	16.8	17.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.9	11.5
Return on equity	%	14.6	15.0
Return on capital employed	%	20.1	20.6

To see how GODFREY PHILLIPS has performed over the last 5 years, please visit here.

GODFREY PHILLIPS Share Price Performance

Over the last one year, GODFREY PHILLIPS share price has moved up from Rs 1,001.4 to Rs 1,160.9, registering a gain of Rs 159.6 or around 15.9%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for GODFREY PHILLIPS and quarterly results for GODFREY PHILLIPS)

Read: Latest Annual Report Analysis of GODFREY PHILLIPS