GMDC 2022-23 Annual Report Analysis

Thu, 14 Sep

GMDC 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.

GMDC Income Statement Analysis

• Operating income during the year rose 28.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 86.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 38.6% in FY23 as against 26.4% in FY22.
• Depreciation charges decreased by 17.2% and finance costs decreased by 30.8% YoY, respectively.
• Other income grew by 151.5% YoY.
• Net profit for the year grew by 172.6% YoY.
• Net profit margins during the year grew from 16.3% in FY22 to 34.7% in FY23.

GMDC Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	27,321	35,014	28.2%
Other income	Rs m	1,565	3,936	151.5%
Total Revenues	Rs m	28,885	38,950	34.8%
Gross profit	Rs m	7,225	13,503	86.9%
Depreciation	Rs m	980	812	-17.2%
Interest	Rs m	33	23	-30.8%
Profit before tax	Rs m	7,776	16,604	113.5%
Tax	Rs m	3,317	4,447	34.0%
Profit after tax	Rs m	4,459	12,157	172.6%
Gross profit margin	%	26.4	38.6
Effective tax rate	%	42.7	26.8
Net profit margin	%	16.3	34.7

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GMDC Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 16.9%.
• Current assets rose 22% and stood at Rs 20 billion, while fixed assets rose 16% and stood at Rs 49 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 69 billion as against Rs 59 billion during FY22, thereby witnessing a growth of 18%.

GMDC Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	48,216	57,983	20.3
Current Liabilities	Rs m	4,224	4,940	16.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	58,822	69,210	17.7
Current assets	Rs m	16,571	20,186	21.8
Fixed Assets	Rs m	42,250	49,024	16.0
Total Assets	Rs m	58,822	69,210	17.7

GMDC Cash Flow Statement Analysis

• GMDC's cash flow from operating activities (CFO) during FY23 stood at Rs 9 billion, an improvement of 93.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -8 billion, an improvement of 16.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 84 million from the Rs -2 billion net cash flows seen during FY22.

GMDC 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	4,815	9,316	93.5%
Cash Flow from Investing Activities	Rs m	-6,735	-7,859	-
Cash Flow from Financing Activities	Rs m	-67	-1,373	-
Net Cash Flow	Rs m	-1,987	84	-

Current Valuations for GMDC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.2, an improvement from the EPS of Rs 14.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 285.7, stands at 8.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 4.3 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	85.9	110.1
TTM Earnings per share	Rs	14.0	38.2
Diluted earnings per share	Rs	14.0	38.2
Price to Cash Flow	x	11.1	4.3
TTM P/E ratio	x	13.6	8.4
Price / Book Value ratio	x	0.8	1.0
Market Cap	Rs m	39,710	55,586
Dividends per share (Unadj.)	Rs	4.3	11.5

Ratio Analysis for GMDC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.1x during FY23, from 3.9x 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 improved and stood at 728.9x during FY23, from 236.9x 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 improved and stood at 21.0% during FY23, from 9.2% 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 improved and stood at 28.7% during FY23, from 16.2% 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 improved and stood at 17.6% during FY23, from 7.6% 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	3.9	4.1
Debtors’ Days	Days	274	197
Interest coverage	x	236.9	728.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.6	17.6
Return on equity	%	9.2	21.0
Return on capital employed	%	16.2	28.7

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

GMDC Share Price Performance

Over the last one year, GMDC share price has moved up from Rs 161.1 to Rs 285.7, registering a gain of Rs 124.6 or around 77.4%.

Overall, the S&P BSE SENSEX is up 12.3% over the year.

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