GMM PFAUDLER 2022-23 Annual Report Analysis

Mon, 14 Aug

GMM PFAUDLER 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.

GMM PFAUDLER Income Statement Analysis

• Operating income during the year rose 25.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 44.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.9% in FY23 as against 11.2% in FY22.
• Depreciation charges decreased by 9.9% and finance costs increased by 170.6% YoY, respectively.
• Other income grew by 639.5% YoY.
• Net profit for the year grew by 183.3% YoY.
• Net profit margins during the year grew from 3.0% in FY22 to 6.7% in FY23.

GMM PFAUDLER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	25,406	31,776	25.1%
Other income	Rs m	70	517	639.5%
Total Revenues	Rs m	25,476	32,292	26.8%
Gross profit	Rs m	2,836	4,096	44.4%
Depreciation	Rs m	1,326	1,195	-9.9%
Interest	Rs m	246	666	170.6%
Profit before tax	Rs m	1,334	2,752	106.4%
Tax	Rs m	580	617	6.4%
Profit after tax	Rs m	754	2,135	183.3%
Gross profit margin	%	11.2	12.9
Effective tax rate	%	43.5	22.4
Net profit margin	%	3.0	6.7

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GMM PFAUDLER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 15 billion as compared to Rs 11 billion in FY22, thereby witnessing an increase of 42.6%.
• Long-term debt stood at Rs 6 billion as compared to Rs 4 billion during FY22, a growth of 42.5%.
• Current assets rose 39% and stood at Rs 22 billion, while fixed assets rose 11% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 35 billion as against Rs 29 billion during FY22, thereby witnessing a growth of 22%.

GMM PFAUDLER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,266	8,007	52.0
Current Liabilities	Rs m	10,689	15,237	42.6
Long-term Debt	Rs m	4,496	6,409	42.5
Total Liabilities	Rs m	28,582	34,758	21.6
Current assets	Rs m	15,817	22,029	39.3
Fixed Assets	Rs m	11,494	12,729	10.8
Total Assets	Rs m	28,582	34,758	21.6

GMM PFAUDLER Cash Flow Statement Analysis

• GMM PFAUDLER's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 166.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 335% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 209 million from the Rs 471 million net cash flows seen during FY22.

GMM PFAUDLER 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	2,364	1,848	-21.8%
Cash Flow from Investing Activities	Rs m	-1,166	-3,111	-
Cash Flow from Financing Activities	Rs m	-553	1,299	-
Net Cash Flow	Rs m	471	209	-55.6%

Current Valuations for GMM PFAUDLER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 47.5, an decline from the EPS of Rs 51.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,535.7, stands at 33.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.6 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 23.2 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	1,737.7	706.8
TTM Earnings per share	Rs	51.5	47.5
Diluted earnings per share	Rs	16.8	47.5
Price to Cash Flow	x	32.9	23.2
TTM P/E ratio	x	90.8	33.5
Price / Book Value ratio	x	4.3	9.7
Market Cap	Rs m	22,813	77,338
Dividends per share (Unadj.)	Rs	6.0	2.0

Ratio Analysis for GMM PFAUDLER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.5x 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 5.1x during FY23, from 6.4x 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 26.7% during FY23, from 14.3% 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 23.7% 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 8.1% during FY23, from 3.5% 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	1.5	1.4
Debtors’ Days	Days	5	5
Interest coverage	x	6.4	5.1
Debt to equity ratio	x	0.9	0.8
Return on assets	%	3.5	8.1
Return on equity	%	14.3	26.7
Return on capital employed	%	16.2	23.7

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

GMM PFAUDLER Share Price Performance

Over the last one year, GMM PFAUDLER share price has moved down from Rs 1,569.9 to Rs 1,535.7, registering a loss of Rs 34.2 or around 2.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 43,015.8 (down 0.9%). Over the last one year it has moved up from 30,944.1 to 43,015.8, a gain of 12,072 points (up 39.0%).

Overall, the S&P BSE SENSEX is up 10.5% over the year.

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