GNA AXLES 2022-23 Annual Report Analysis

Thu, 5 Oct

GNA AXLES 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.

GNA AXLES Income Statement Analysis

• Operating income during the year rose 24.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.7% in FY23 as against 14.2% in FY22.
• Depreciation charges decreased by 2.4% and finance costs decreased by 2.3% YoY, respectively.
• Other income grew by 154.5% YoY.
• Net profit for the year grew by 46.7% YoY.
• Net profit margins during the year grew from 7.0% in FY22 to 8.2% in FY23.

GNA AXLES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,705	15,829	24.6%
Other income	Rs m	6	14	154.5%
Total Revenues	Rs m	12,710	15,843	24.7%
Gross profit	Rs m	1,809	2,327	28.6%
Depreciation	Rs m	497	485	-2.4%
Interest	Rs m	112	110	-2.3%
Profit before tax	Rs m	1,206	1,746	44.8%
Tax	Rs m	318	444	39.7%
Profit after tax	Rs m	888	1,302	46.7%
Gross profit margin	%	14.2	14.7
Effective tax rate	%	26.4	25.4
Net profit margin	%	7.0	8.2

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GNA AXLES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 6.7%.
• Long-term debt down at Rs 301 million as compared to Rs 473 million during FY22, a fall of 36.4%.
• Current assets rose 15% and stood at Rs 8 billion, while fixed assets rose 7% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 12 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 12%.

GNA AXLES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,952	7,145	20.0
Current Liabilities	Rs m	3,993	4,259	6.7
Long-term Debt	Rs m	473	301	-36.4
Total Liabilities	Rs m	10,411	11,682	12.2
Current assets	Rs m	7,145	8,199	14.8
Fixed Assets	Rs m	3,266	3,483	6.6
Total Assets	Rs m	10,411	11,682	12.2

GNA AXLES Cash Flow Statement Analysis

• GNA AXLES's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 154.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -665 million, an improvement of 44.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -389 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 million from the Rs -1 million net cash flows seen during FY22.

GNA AXLES 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	414	1,054	154.8%
Cash Flow from Investing Activities	Rs m	-459	-665	-
Cash Flow from Financing Activities	Rs m	45	-389	-
Net Cash Flow	Rs m	-1	1	-

Current Valuations for GNA AXLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 60.6, an improvement from the EPS of Rs 41.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 467.9, stands at 14.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 0.6 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	591.7	737.3
TTM Earnings per share	Rs	41.3	60.6
Diluted earnings per share	Rs	20.7	30.3
Price to Cash Flow	x	7.6	4.3
TTM P/E ratio	x	11.8	14.7
Price / Book Value ratio	x	2.6	1.1
Market Cap	Rs m	15,524	7,748
Dividends per share (Unadj.)	Rs	5.0	6.0

Ratio Analysis for GNA AXLES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY23, from 1.8x 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 16.9x during FY23, from 11.7x 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 18.2% during FY23, from 14.9% 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 24.9% during FY23, from 20.5% 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 12.1% during FY23, from 9.6% 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	1.8	1.9
Debtors’ Days	Days	1,363	1,293
Interest coverage	x	11.7	16.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	9.6	12.1
Return on equity	%	14.9	18.2
Return on capital employed	%	20.5	24.9

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

GNA AXLES Share Price Performance

Over the last one year, GNA AXLES share price has moved up from Rs 320.5 to Rs 467.9, registering a gain of Rs 147.5 or around 46.0%.

Overall, the S&P BSE SENSEX is up 15.6% over the year.

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