GUJARAT AMBUJA 2022-23 Annual Report Analysis

Tue, 22 Aug

GUJARAT AMBUJA 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.

GUJARAT AMBUJA Income Statement Analysis

• Operating income during the year rose 5.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 30.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.7% in FY23 as against 14.7% in FY22.
• Depreciation charges decreased by 2.7% and finance costs increased by 133.5% YoY, respectively.
• Other income grew by 36.9% YoY.
• Net profit for the year declined by 30.6% YoY.
• Net profit margins during the year declined from 10.2% in FY22 to 6.7% in FY23.

GUJARAT AMBUJA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	46,703	49,090	5.1%
Other income	Rs m	541	740	36.9%
Total Revenues	Rs m	47,244	49,830	5.5%
Gross profit	Rs m	6,871	4,750	-30.9%
Depreciation	Rs m	973	947	-2.7%
Interest	Rs m	57	133	133.5%
Profit before tax	Rs m	6,382	4,411	-30.9%
Tax	Rs m	1,627	1,110	-31.8%
Profit after tax	Rs m	4,754	3,301	-30.6%
Gross profit margin	%	14.7	9.7
Effective tax rate	%	25.5	25.2
Net profit margin	%	10.2	6.7

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GUJARAT AMBUJA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 6 billion in FY22, thereby witnessing an decrease of -21.6%.
• Long-term debt stood at Rs 31 million as compared to Rs 26 million during FY22, a growth of 17.9%.
• Current assets rose 4% and stood at Rs 17 billion, while fixed assets rose 11% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 30 billion as against Rs 28 billion during FY22, thereby witnessing a growth of 7%.

GUJARAT AMBUJA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	21,183	24,340	14.9
Current Liabilities	Rs m	5,609	4,399	-21.6
Long-term Debt	Rs m	26	31	17.9
Total Liabilities	Rs m	27,526	29,516	7.2
Current assets	Rs m	16,365	17,079	4.4
Fixed Assets	Rs m	11,144	12,397	11.2
Total Assets	Rs m	27,526	29,516	7.2

GUJARAT AMBUJA Cash Flow Statement Analysis

• GUJARAT AMBUJA's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -724 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -756 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 934 million from the Rs -810 million net cash flows seen during FY22.

GUJARAT AMBUJA 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	5,958	2,414	-59.5%
Cash Flow from Investing Activities	Rs m	-7,766	-724	-
Cash Flow from Financing Activities	Rs m	998	-756	-
Net Cash Flow	Rs m	-810	934	-

Current Valuations for GUJARAT AMBUJA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.4, an decline from the EPS of Rs 20.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 244.9, stands at 19.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 16.5 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	203.6	214.0
TTM Earnings per share	Rs	20.7	14.4
Diluted earnings per share	Rs	20.7	14.4
Price to Cash Flow	x	10.4	16.5
TTM P/E ratio	x	12.6	19.6
Price / Book Value ratio	x	2.2	2.9
Market Cap	Rs m	45,603	69,878
Dividends per share (Unadj.)	Rs	0.7	0.7

Ratio Analysis for GUJARAT AMBUJA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.9x during FY23, from 2.9x 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 34.3x during FY23, from 113.4x 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 13.6% during FY23, from 22.4% 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 declined and down at 18.6% during FY23, from 30.4% 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 declined and down at 11.6% during FY23, from 17.5% 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	2.9	3.9
Debtors’ Days	Days	2	2
Interest coverage	x	113.4	34.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.5	11.6
Return on equity	%	22.4	13.6
Return on capital employed	%	30.4	18.6

To see how GUJARAT AMBUJA has performed over the last 5 years, please visit here.

GUJARAT AMBUJA Share Price Performance

Over the last one year, GUJARAT AMBUJA share price has moved down from Rs 284.2 to Rs 244.9, registering a loss of Rs 39.3 or around 13.8%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

(To know more, check out historical annual results for GUJARAT AMBUJA and quarterly results for GUJARAT AMBUJA)