GLOSTER 2022-23 Annual Report Analysis

Thu, 17 Aug

GLOSTER 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.

GLOSTER Income Statement Analysis

• Operating income during the year fell 3.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 22.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.7% in FY23 as against 14.6% in FY22.
• Depreciation charges increased by 3.6% and finance costs increased by 56.3% YoY, respectively.
• Other income declined by 30.1% YoY.
• Net profit for the year declined by 16.7% YoY.
• Net profit margins during the year declined from 8.9% in FY22 to 7.7% in FY23.

GLOSTER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,338	7,102	-3.2%
Other income	Rs m	371	259	-30.1%
Total Revenues	Rs m	7,709	7,361	-4.5%
Gross profit	Rs m	1,072	832	-22.4%
Depreciation	Rs m	344	356	3.6%
Interest	Rs m	13	21	56.3%
Profit before tax	Rs m	1,086	714	-34.2%
Tax	Rs m	433	170	-60.7%
Profit after tax	Rs m	653	544	-16.7%
Gross profit margin	%	14.6	11.7
Effective tax rate	%	39.9	23.8
Net profit margin	%	8.9	7.7

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GLOSTER Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -9.1%.
• Long-term debt stood at Rs 469 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets fell 20% and stood at Rs 3 billion, while fixed assets rose 13% and stood at Rs 10 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 13 billion during FY22, thereby witnessing a growth of 3%.

GLOSTER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	10,706	10,790	0.8
Current Liabilities	Rs m	1,723	1,566	-9.1
Long-term Debt	Rs m	0	469	0.0
Total Liabilities	Rs m	13,420	13,771	2.6
Current assets	Rs m	4,319	3,465	-19.8
Fixed Assets	Rs m	9,100	10,306	13.3
Total Assets	Rs m	13,420	13,771	2.6

GLOSTER Cash Flow Statement Analysis

• GLOSTER's cash flow from operating activities (CFO) during FY23 stood at Rs 669 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -773 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 149 million, an improvement of 151% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 45 million from the Rs 9 million net cash flows seen during FY22.

GLOSTER 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	1,256	669	-46.7%
Cash Flow from Investing Activities	Rs m	-958	-773	-
Cash Flow from Financing Activities	Rs m	-290	149	-
Net Cash Flow	Rs m	9	45	417.6%

Current Valuations for GLOSTER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 49.7, an decline from the EPS of Rs 119.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 739.9, stands at 17.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 8.7 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	1,341.5	649.2
TTM Earnings per share	Rs	119.3	49.7
Diluted earnings per share	Rs	59.7	49.7
Price to Cash Flow	x	6.0	8.7
TTM P/E ratio	x	9.2	17.1
Price / Book Value ratio	x	0.5	0.7
Market Cap	Rs m	5,342	7,865
Dividends per share (Unadj.)	Rs	35.0	70.0

Ratio Analysis for GLOSTER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY23, from 2.5x 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 35.0x during FY23, from 81.8x 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 5.0% during FY23, from 6.1% 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 6.5% during FY23, from 10.3% 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 4.1% during FY23, from 5.0% 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	2.5	2.2
Debtors’ Days	Days	148	196
Interest coverage	x	81.8	35.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.0	4.1
Return on equity	%	6.1	5.0
Return on capital employed	%	10.3	6.5

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

GLOSTER Share Price Performance

Over the last one year, GLOSTER share price has moved up from Rs 572.7 to Rs 739.9, registering a gain of Rs 167.2 or around 29.2%.

Overall, the S&P BSE SENSEX is up 8.9% over the year.

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