GLOBUS SPIRITS 2022-23 Annual Report Analysis

Fri, 30 Jun

GLOBUS SPIRITS 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.

GLOBUS SPIRITS Income Statement Analysis

• Operating income during the year rose 71.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 25.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.6% in FY23 as against 40.3% in FY22.
• Depreciation charges increased by 32.4% and finance costs increased by 48.8% YoY, respectively.
• Other income grew by 18.2% YoY.
• Net profit for the year declined by 34.7% YoY.
• Net profit margins during the year declined from 23.0% in FY22 to 8.8% in FY23.

GLOBUS SPIRITS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,145	13,957	71.4%
Other income	Rs m	66	78	18.2%
Total Revenues	Rs m	8,211	14,035	70.9%
Gross profit	Rs m	3,286	2,456	-25.3%
Depreciation	Rs m	426	563	32.4%
Interest	Rs m	114	170	48.8%
Profit before tax	Rs m	2,812	1,801	-36.0%
Tax	Rs m	940	579	-38.4%
Profit after tax	Rs m	1,873	1,222	-34.7%
Gross profit margin	%	40.3	17.6
Effective tax rate	%	33.4	32.1
Net profit margin	%	23.0	8.8

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GLOBUS SPIRITS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 60.1%.
• Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY22, a growth of 1.8%.
• Current assets rose 23% and stood at Rs 5 billion, while fixed assets rose 27% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 16 billion as against Rs 13 billion during FY22, thereby witnessing a growth of 26%.

GLOBUS SPIRITS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,723	8,858	14.7
Current Liabilities	Rs m	3,074	4,922	60.1
Long-term Debt	Rs m	1,090	1,109	1.8
Total Liabilities	Rs m	12,875	16,183	25.7
Current assets	Rs m	4,380	5,366	22.5
Fixed Assets	Rs m	8,495	10,817	27.3
Total Assets	Rs m	12,875	16,183	25.7

GLOBUS SPIRITS Cash Flow Statement Analysis

• GLOBUS SPIRITS's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion 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 850 million, an improvement of 459% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 24 million from the Rs -225 million net cash flows seen during FY22.

GLOBUS SPIRITS 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	2,188	1,281	-41.5%
Cash Flow from Investing Activities	Rs m	-2,176	-2,107	-
Cash Flow from Financing Activities	Rs m	-237	850	-
Net Cash Flow	Rs m	-225	24	-

Current Valuations for GLOBUS SPIRITS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.4, an decline from the EPS of Rs 65.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,267.0, stands at 29.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 18.9 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	282.8	484.6
TTM Earnings per share	Rs	65.0	42.4
Diluted earnings per share	Rs	65.0	42.4
Price to Cash Flow	x	19.2	18.9
TTM P/E ratio	x	23.5	29.9
Price / Book Value ratio	x	3.8	3.8
Market Cap	Rs m	29,662	33,699
Dividends per share (Unadj.)	Rs	3.0	6.0

Ratio Analysis for GLOBUS SPIRITS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.4x 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 11.6x during FY23, from 25.6x 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 13.8% during FY23, from 24.2% 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 19.8% during FY23, from 33.2% 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 8.6% during FY23, from 15.4% 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	1.4	1.1
Debtors’ Days	Days	529	553
Interest coverage	x	25.6	11.6
Debt to equity ratio	x	0.1	0.1
Return on assets	%	15.4	8.6
Return on equity	%	24.2	13.8
Return on capital employed	%	33.2	19.8

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

GLOBUS SPIRITS Share Price Performance

Over the last one year, GLOBUS SPIRITS share price has moved up from Rs 916.3 to Rs 1,267.0, registering a gain of Rs 350.7 or around 38.3%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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