GOLDSTAR POWER 2022-23 Annual Report Analysis

Thu, 21 Sep

GOLDSTAR POWER 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.

GOLDSTAR POWER Income Statement Analysis

• Operating income during the year rose 16.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 147.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.9% in FY23 as against 5.6% in FY22.
• Depreciation charges increased by 11.7% and finance costs increased by 23.8% YoY, respectively.
• Other income grew by 67.7% YoY.
• Net profit for the year grew by 427.2% YoY.
• Net profit margins during the year grew from 1.6% in FY22 to 7.5% in FY23.

GOLDSTAR POWER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	429	500	16.5%
Other income	Rs m	13	21	67.7%
Total Revenues	Rs m	442	521	18.0%
Gross profit	Rs m	24	59	147.5%
Depreciation	Rs m	14	16	11.7%
Interest	Rs m	12	15	23.8%
Profit before tax	Rs m	11	50	373.9%
Tax	Rs m	3	13	265.9%
Profit after tax	Rs m	7	37	427.2%
Gross profit margin	%	5.6	11.9
Effective tax rate	%	33.0	25.5
Net profit margin	%	1.6	7.5

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GOLDSTAR POWER Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 131 million as compared to Rs 173 million in FY22, thereby witnessing an decrease of -24.4%.
• Long-term debt down at Rs 59 million as compared to Rs 77 million during FY22, a fall of 22.7%.
• Current assets fell 2% and stood at Rs 284 million, while fixed assets fell 6% and stood at Rs 161 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 445 million as against Rs 462 million during FY22, thereby witnessing a fall of 4%.

GOLDSTAR POWER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	204	241	18.3
Current Liabilities	Rs m	173	131	-24.4
Long-term Debt	Rs m	77	59	-22.7
Total Liabilities	Rs m	462	445	-3.8
Current assets	Rs m	290	284	-2.4
Fixed Assets	Rs m	172	161	-6.1
Total Assets	Rs m	462	445	-3.8

GOLDSTAR POWER Cash Flow Statement Analysis

• GOLDSTAR POWER's cash flow from operating activities (CFO) during FY23 stood at Rs 65 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -60 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs -26 million net cash flows seen during FY22.

GOLDSTAR POWER 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	-9	65	-
Cash Flow from Investing Activities	Rs m	-74	-5	-
Cash Flow from Financing Activities	Rs m	58	-60	-
Net Cash Flow	Rs m	-26	0	-

Current Valuations for GOLDSTAR POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an decline from the EPS of Rs 0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 10.7, stands at 72.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.1 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 50.5 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	40.1	2.6
TTM Earnings per share	Rs	0.7	0.2
Diluted earnings per share	Rs	0.0	0.1
Price to Cash Flow	x	0.0	50.5
TTM P/E ratio	x	0.0	72.0
Price / Book Value ratio	x	1.2	0.0
Market Cap	Rs m	252	2,683
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GOLDSTAR POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY23, from 1.7x 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 4.4x during FY23, from 1.9x 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 15.4% during FY23, from 3.5% 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 improved and stood at 21.6% during FY23, from 8.0% 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 11.7% during FY23, from 4.1% 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	1.7	2.2
Debtors’ Days	Days	813	810
Interest coverage	x	1.9	4.4
Debt to equity ratio	x	0.4	0.2
Return on assets	%	4.1	11.7
Return on equity	%	3.5	15.4
Return on capital employed	%	8.0	21.6

To see how GOLDSTAR POWER has performed over the last 5 years, please visit here.

GOLDSTAR POWER Share Price Performance

Over the last one year, GOLDSTAR POWER share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is down 0.8% over the year.

(To know more, check out historical annual results for GOLDSTAR POWER and quarterly results for GOLDSTAR POWER)