G.M. BREWERIES 2022-23 Annual Report Analysis

Fri, 28 Apr

G.M. BREWERIES 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.

G.M. BREWERIES Income Statement Analysis

• Operating income during the year was NA on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.5% YoY during the fiscal. Operating profit margins witnessed a growth and down at 10.3% in FY23 as against 11.1% in FY22.
• Depreciation charges decreased by 4.1% and finance costs increased by 171.4% YoY, respectively.
• Other income declined by 28.4% YoY.
• Net profit for the year grew by 7.0% YoY.
• Net profit margins during the year grew from 10.8% in FY22 to 8.8% in FY23.

G.M. BREWERIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	-8,612	-11,387	NA
Other income	Rs m	286	205	-28.4%
Total Revenues	Rs m	-8,326	-11,183	NA
Gross profit	Rs m	955	1,170	22.5%
Depreciation	Rs m	61	58	-4.1%
Interest	Rs m	0	0	171.4%
Profit before tax	Rs m	1,181	1,316	11.5%
Tax	Rs m	247	318	28.6%
Profit after tax	Rs m	934	999	7.0%
Gross profit margin	%	-11.1	-10.3
Effective tax rate	%	20.9	24.1
Net profit margin	%	-10.8	-8.8

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G.M. BREWERIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 849 million as compared to Rs 740 million in FY22, thereby witnessing an increase of 14.8%.
• Current assets fell 11% and stood at Rs 1 billion, while fixed assets rose 21% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 7 billion during FY22, thereby witnessing a growth of 15%.

G.M. BREWERIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,910	6,818	15.4
Current Liabilities	Rs m	740	849	14.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,680	7,692	15.1
Current assets	Rs m	1,215	1,078	-11.2
Fixed Assets	Rs m	5,465	6,613	21.0
Total Assets	Rs m	6,680	7,692	15.1

G.M. BREWERIES Cash Flow Statement Analysis

• G.M. BREWERIES's cash flow from operating activities (CFO) during FY23 stood at Rs 960 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -868 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -92 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 million from the Rs -48 million net cash flows seen during FY22.

G.M. BREWERIES 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	975	960	-1.5%
Cash Flow from Investing Activities	Rs m	-949	-868	-
Cash Flow from Financing Activities	Rs m	-73	-92	-
Net Cash Flow	Rs m	-48	1	-

Current Valuations for G.M. BREWERIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 54.6, an improvement from the EPS of Rs 51.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 568.8, stands at 10.4 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 -0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 10.9 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	-471.1	-622.9
TTM Earnings per share	Rs	51.1	54.6
Diluted earnings per share	Rs	51.1	54.6
Price to Cash Flow	x	13.1	10.9
TTM P/E ratio	x	14.0	10.4
Price / Book Value ratio	x	2.0	1.7
Market Cap	Rs m	11,815	11,548
Dividends per share (Unadj.)	Rs	5.0	6.0

Ratio Analysis for G.M. BREWERIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.6x 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 3,464.6x during FY23, from 8,433.2x 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 14.6% during FY23, from 15.8% 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 19.3% during FY23, from 20.0% 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 13.0% during FY23, from 14.0% 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	1.6	1.3
Debtors’ Days	Days	-13	-1
Interest coverage	x	8,433.2	3,464.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.0	13.0
Return on equity	%	15.8	14.6
Return on capital employed	%	20.0	19.3

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 down from Rs 634.9 to Rs 568.8, registering a loss of Rs 66.1 or around 10.4%.

Overall, the S&P BSE SENSEX is up 6.1% 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