GODFREY PHILLIPS 2022-23 Annual Report Analysis

Mon, 14 Aug

GODFREY PHILLIPS 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.

GODFREY PHILLIPS Income Statement Analysis

• Operating income during the year rose 33.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.0% in FY23 as against 29.5% in FY22.
• Depreciation charges increased by 5.8% and finance costs decreased by 14.5% YoY, respectively.
• Other income grew by 47.3% YoY.
• Net profit for the year grew by 57.6% YoY.
• Net profit margins during the year grew from 20.4% in FY22 to 24.1% in FY23.

GODFREY PHILLIPS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	21,465	28,652	33.5%
Other income	Rs m	1,141	1,681	47.3%
Total Revenues	Rs m	22,606	30,332	34.2%
Gross profit	Rs m	6,333	8,872	40.1%
Depreciation	Rs m	1,452	1,536	5.8%
Interest	Rs m	339	290	-14.5%
Profit before tax	Rs m	5,682	8,726	53.6%
Tax	Rs m	1,302	1,822	39.9%
Profit after tax	Rs m	4,380	6,904	57.6%
Gross profit margin	%	29.5	31.0
Effective tax rate	%	22.9	20.9
Net profit margin	%	20.4	24.1

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GODFREY PHILLIPS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 10 billion as compared to Rs 8 billion in FY22, thereby witnessing an increase of 26.4%.
• Long-term debt stood at Rs 12 million as compared to Rs 11 million during FY22, a growth of 10.4%.
• Current assets fell 14% and stood at Rs 14 billion, while fixed assets rose 45% and stood at Rs 35 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 50 billion as against Rs 41 billion during FY22, thereby witnessing a growth of 21%.

GODFREY PHILLIPS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	29,276	35,479	21.2
Current Liabilities	Rs m	8,223	10,398	26.4
Long-term Debt	Rs m	11	12	10.4
Total Liabilities	Rs m	41,016	49,682	21.1
Current assets	Rs m	16,486	14,194	-13.9
Fixed Assets	Rs m	24,530	35,488	44.7
Total Assets	Rs m	41,016	49,682	21.1

GODFREY PHILLIPS Cash Flow Statement Analysis

• GODFREY PHILLIPS's cash flow from operating activities (CFO) during FY23 stood at Rs 7 billion, an improvement of 53.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion, an improvement of 130.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion, an improvement of 13% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -111 million from the Rs 63 million net cash flows seen during FY22.

GODFREY PHILLIPS 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	4,786	7,359	53.8%
Cash Flow from Investing Activities	Rs m	-2,343	-5,408	-
Cash Flow from Financing Activities	Rs m	-2,380	-2,063	-
Net Cash Flow	Rs m	63	-111	-

Current Valuations for GODFREY PHILLIPS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 132.8, an improvement from the EPS of Rs 84.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,106.1, stands at 15.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 9.7 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	412.9	551.1
TTM Earnings per share	Rs	84.3	132.8
Diluted earnings per share	Rs	84.2	132.8
Price to Cash Flow	x	9.0	9.7
TTM P/E ratio	x	12.0	15.7
Price / Book Value ratio	x	2.0	2.3
Market Cap	Rs m	58,277	81,809
Dividends per share (Unadj.)	Rs	28.0	44.0

Ratio Analysis for GODFREY PHILLIPS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 2.0x 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 31.1x during FY23, from 17.7x 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 19.5% during FY23, from 15.0% 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 25.4% during FY23, from 20.6% 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 14.5% during FY23, from 11.5% 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	2.0	1.4
Debtors’ Days	Days	263	190
Interest coverage	x	17.7	31.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.5	14.5
Return on equity	%	15.0	19.5
Return on capital employed	%	20.6	25.4

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 1,184.5 to Rs 2,106.1, registering a gain of Rs 921.6 or around 77.8%.

Overall, the S&P BSE SENSEX is up 10.5% over the year.

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