G.M. BREWERIES 2021-22 Annual Report Analysis

Fri, 20 May

G.M. BREWERIES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

G.M. BREWERIES Income Statement Analysis

• Operating income during the year rose 56.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.9% YoY during the fiscal. Operating profit margins witnessed a growth and down at 11.1% in FY22 as against 13.6% in FY21.
• Depreciation charges increased by 10.6% and finance costs decreased by 77.8% YoY, respectively.
• Other income declined by 5.6% YoY.
• Net profit for the year grew by 16.6% YoY.
• Net profit margins during the year grew from 14.5% in FY21 to 10.8% in FY22.

G.M. BREWERIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	-5,522	-8,612	56.0%
Other income	Rs m	303	286	-5.6%
Total Revenues	Rs m	-5,219	-8,326	59.5%
Gross profit	Rs m	753	955	26.9%
Depreciation	Rs m	55	61	10.6%
Interest	Rs m	1	0	-77.8%
Profit before tax	Rs m	1,001	1,181	18.0%
Tax	Rs m	200	247	23.7%
Profit after tax	Rs m	801	934	16.6%
Gross profit margin	%	-13.6	-11.1
Effective tax rate	%	20.0	20.9
Net profit margin	%	-14.5	-10.8

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G.M. BREWERIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 740 million as compared to Rs 644 million in FY21, thereby witnessing an increase of 14.9%.
• Current assets rose 29% and stood at Rs 1 billion, while fixed assets rose 14% and stood at Rs 5 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 7 billion as against Rs 6 billion during FY21, thereby witnessing a growth of 17%.

G.M. BREWERIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,050	5,910	17.0
Current Liabilities	Rs m	644	740	14.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	5,729	6,680	16.6
Current assets	Rs m	943	1,215	28.9
Fixed Assets	Rs m	4,787	5,465	14.2
Total Assets	Rs m	5,729	6,680	16.6

G.M. BREWERIES Cash Flow Statement Analysis

• G.M. BREWERIES's cash flow from operating activities (CFO) during FY22 stood at Rs 975 million, an improvement of 6,807.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -949 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -73 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -48 million from the Rs 60 million net cash flows seen during FY21.

G.M. BREWERIES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	14	975	6,807.8%
Cash Flow from Investing Activities	Rs m	101	-949	-
Cash Flow from Financing Activities	Rs m	-55	-73	-
Net Cash Flow	Rs m	60	-48	-

Current Valuations for G.M. BREWERIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 51.1, an improvement from the EPS of Rs 43.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 575.4, stands at 11.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at -1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 11.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	-302.1	-471.1
TTM Earnings per share	Rs	43.8	51.1
Diluted earnings per share	Rs	43.8	51.1
Price to Cash Flow	x	8.9	11.9
TTM P/E ratio	x	9.5	11.3
Price / Book Value ratio	x	1.4	2.0
Market Cap	Rs m	7,176	11,815
Dividends per share (Unadj.)	Rs	4.0	5.0

Ratio Analysis for G.M. BREWERIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY22, from 1.5x during FY21. 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 8,433.2x during FY22, from 1,589.2x during FY21. 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 15.8% during FY22, from 15.9% during FY22. 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 20.0% during FY22, from 19.8% during FY21. 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 14.0% during FY22, from 14.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.5	1.6
Debtors’ Days	Days	-6	-13
Interest coverage	x	1,589.2	8,433.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.0	14.0
Return on equity	%	15.9	15.8
Return on capital employed	%	19.8	20.0

To see how G.M. BREWERIES has performed over the last 5 years, please visit here.

G.M. BREWERIES Share Price Performance

Over the last one year, G.M. BREWERIES share price has moved up from Rs 418.1 to Rs 575.4, registering a gain of Rs 157.3 or around 37.6%.

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

(To know more, check out historical annual results for G.M. BREWERIES and quarterly results for G.M. BREWERIES)

Read: Latest Annual Report Analysis of G.M. BREWERIES