GUJARAT NARMADA 2022-23 Annual Report Analysis

Tue, 29 Aug

GUJARAT NARMADA 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.

GUJARAT NARMADA Income Statement Analysis

• Operating income during the year rose 18.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.4% in FY23 as against 27.6% in FY22.
• Depreciation charges increased by 3.9% and finance costs increased by 52.0% YoY, respectively.
• Other income grew by 72.6% YoY.
• Net profit for the year declined by 14.1% YoY.
• Net profit margins during the year declined from 19.7% in FY22 to 14.3% in FY23.

GUJARAT NARMADA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	86,423	102,269	18.3%
Other income	Rs m	2,103	3,631	72.6%
Total Revenues	Rs m	88,526	105,900	19.6%
Gross profit	Rs m	23,829	18,767	-21.2%
Depreciation	Rs m	2,917	3,029	3.9%
Interest	Rs m	35	53	52.0%
Profit before tax	Rs m	22,981	19,316	-15.9%
Tax	Rs m	5,943	4,676	-21.3%
Profit after tax	Rs m	17,038	14,640	-14.1%
Gross profit margin	%	27.6	18.4
Effective tax rate	%	25.9	24.2
Net profit margin	%	19.7	14.3

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GUJARAT NARMADA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 13 billion as compared to Rs 14 billion in FY22, thereby witnessing an decrease of -4.4%.
• Current assets fell 0% and stood at Rs 49 billion, while fixed assets rose 15% and stood at Rs 67 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 116 billion as against Rs 107 billion during FY22, thereby witnessing a growth of 8%.

GUJARAT NARMADA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	79,900	90,064	12.7
Current Liabilities	Rs m	13,514	12,919	-4.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	107,178	115,968	8.2
Current assets	Rs m	48,778	48,707	-0.1
Fixed Assets	Rs m	58,400	67,261	15.2
Total Assets	Rs m	107,178	115,968	8.2

GUJARAT NARMADA Cash Flow Statement Analysis

• GUJARAT NARMADA's cash flow from operating activities (CFO) during FY23 stood at Rs 14 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -12 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -165 million from the Rs -624 million net cash flows seen during FY22.

GUJARAT NARMADA 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	19,667	13,731	-30.2%
Cash Flow from Investing Activities	Rs m	-18,988	-12,294	-
Cash Flow from Financing Activities	Rs m	-1,303	-1,601	-
Net Cash Flow	Rs m	-624	-165	-

Current Valuations for GUJARAT NARMADA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 94.2, an decline from the EPS of Rs 109.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 607.4, stands at 9.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 6.1 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	556.1	658.0
TTM Earnings per share	Rs	109.6	94.2
Diluted earnings per share	Rs	109.6	94.2
Price to Cash Flow	x	6.6	6.1
TTM P/E ratio	x	7.7	9.6
Price / Book Value ratio	x	1.1	1.2
Market Cap	Rs m	89,090	108,517
Dividends per share (Unadj.)	Rs	10.0	30.0

Ratio Analysis for GUJARAT NARMADA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.8x during FY23, from 3.6x 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 368.2x during FY23, from 665.2x 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 16.3% during FY23, from 21.3% 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 declined and down at 21.5% during FY23, from 28.8% 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 12.7% during FY23, from 15.9% 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	3.6	3.8
Debtors’ Days	Days	3	1
Interest coverage	x	665.2	368.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.9	12.7
Return on equity	%	21.3	16.3
Return on capital employed	%	28.8	21.5

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

GUJARAT NARMADA Share Price Performance

Over the last one year, GUJARAT NARMADA share price has moved down from Rs 726.4 to Rs 607.4, registering a loss of Rs 119.0 or around 16.4%.

Overall, the S&P BSE SENSEX is up 10.8% over the year.

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