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GOCL CORPORATION 2022-23 Annual Report Analysis

Thu, 21 Sep

GOCL CORPORATION 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.

GOCL CORPORATION Income Statement Analysis

• Operating income during the year rose 84.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 3.4% in FY23 as against 25.3% in FY22.
• Depreciation charges increased by 20.8% and finance costs increased by 107.9% YoY, respectively.
• Other income grew by 275.1% YoY.
• Net profit for the year grew by 19.9% YoY.
• Net profit margins during the year declined from 35.3% in FY22 to 22.9% in FY23.

GOCL CORPORATION Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,982	9,208	84.8%
Other income	Rs m	1,303	4,889	275.1%
Total Revenues	Rs m	6,285	14,097	124.3%
Gross profit	Rs m	1,259	-311	NA
Depreciation	Rs m	87	105	20.8%
Interest	Rs m	570	1,186	107.9%
Profit before tax	Rs m	1,905	3,289	72.6%
Tax	Rs m	145	1,177	714.5%
Profit after tax	Rs m	1,761	2,112	19.9%
Gross profit margin	%	25.3	-3.4
Effective tax rate	%	7.6	35.8
Net profit margin	%	35.3	22.9

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GOCL CORPORATION Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 9 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 233.8%.
• Long-term debt down at Rs 11 billion as compared to Rs 15 billion during FY22, a fall of 24.7%.
• Current assets rose 94% and stood at Rs 20 billion, while fixed assets fell 28% and stood at Rs 15 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 35 billion as against Rs 32 billion during FY22, thereby witnessing a growth of 8%.

GOCL CORPORATION Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	11,517	14,095	22.4
Current Liabilities	Rs m	2,612	8,718	233.8
Long-term Debt	Rs m	14,912	11,227	-24.7
Total Liabilities	Rs m	32,380	34,960	8.0
Current assets	Rs m	10,426	20,224	94.0
Fixed Assets	Rs m	20,374	14,736	-27.7
Total Assets	Rs m	32,380	34,960	8.0

GOCL CORPORATION Cash Flow Statement Analysis

• GOCL CORPORATION's cash flow from operating activities (CFO) during FY23 stood at Rs -766 million, an improvement of 24.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -898 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 63 million from the Rs 42 million net cash flows seen during FY22.

GOCL CORPORATION 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	-617	-766	-
Cash Flow from Investing Activities	Rs m	-3,217	1,727	-
Cash Flow from Financing Activities	Rs m	3,875	-898	-
Net Cash Flow	Rs m	42	63	49.5%

Current Valuations for GOCL CORPORATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.6, an improvement from the EPS of Rs 35.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 422.0, stands at 21.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.1 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	100.5	185.8
TTM Earnings per share	Rs	35.5	42.6
Diluted earnings per share	Rs	35.5	42.6
Price to Cash Flow	x	7.3	7.1
TTM P/E ratio	x	7.7	21.3
Price / Book Value ratio	x	1.2	1.1
Market Cap	Rs m	14,277	15,764
Dividends per share (Unadj.)	Rs	5.0	10.0

Ratio Analysis for GOCL CORPORATION

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY23, from 4.0x 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 deteriorated and stood at 3.8x during FY23, from 4.3x 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 declined and down at 15.0% during FY23, from 15.3% 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 17.7% during FY23, from 9.4% 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 9.4% during FY23, from 7.2% 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	4.0	2.3
Debtors’ Days	Days	483	354
Interest coverage	x	4.3	3.8
Debt to equity ratio	x	1.3	0.8
Return on assets	%	7.2	9.4
Return on equity	%	15.3	15.0
Return on capital employed	%	9.4	17.7

To see how GOCL CORPORATION has performed over the last 5 years, please visit here.

GOCL CORPORATION Share Price Performance

Over the last one year, GOCL CORPORATION share price has moved up from Rs 287.9 to Rs 422.0, registering a gain of Rs 134.1 or around 46.6%.

Overall, the S&P BSE SENSEX is up 10.9% over the year.

(To know more, check out historical annual results for GOCL CORPORATION and quarterly results for GOCL CORPORATION)