GANDHI SPECIAL TUBES 2022-23 Annual Report Analysis

Mon, 17 Jul

GANDHI SPECIAL TUBES 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.

GANDHI SPECIAL TUBES Income Statement Analysis

• Operating income during the year rose 22.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 36.2% in FY23 as against 35.9% in FY22.
• Depreciation charges decreased by 3.5% and finance costs decreased by 41.8% YoY, respectively.
• Other income grew by 13.9% YoY.
• Net profit for the year grew by 22.7% YoY.
• Net profit margins during the year grew from 28.2% in FY22 to 28.3% in FY23.

GANDHI SPECIAL TUBES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,370	1,675	22.2%
Other income	Rs m	48	54	13.9%
Total Revenues	Rs m	1,418	1,729	22.0%
Gross profit	Rs m	492	607	23.4%
Depreciation	Rs m	32	31	-3.5%
Interest	Rs m	2	1	-41.8%
Profit before tax	Rs m	505	629	24.5%
Tax	Rs m	119	155	30.3%
Profit after tax	Rs m	386	473	22.7%
Gross profit margin	%	35.9	36.2
Effective tax rate	%	23.6	24.7
Net profit margin	%	28.2	28.3

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GANDHI SPECIAL TUBES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 113 million as compared to Rs 97 million in FY22, thereby witnessing an increase of 17.0%.
• Current assets rose 19% and stood at Rs 955 million, while fixed assets rose 24% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 22%.

GANDHI SPECIAL TUBES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,472	1,821	23.7
Current Liabilities	Rs m	97	113	17.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,664	2,023	21.6
Current assets	Rs m	804	955	18.8
Fixed Assets	Rs m	860	1,068	24.3
Total Assets	Rs m	1,664	2,023	21.6

GANDHI SPECIAL TUBES Cash Flow Statement Analysis

• GANDHI SPECIAL TUBES's cash flow from operating activities (CFO) during FY23 stood at Rs 453 million, an improvement of 8.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -75 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -123 million, an improvement of 81% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 256 million from the Rs -4 million net cash flows seen during FY22.

GANDHI SPECIAL TUBES 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	416	453	8.8%
Cash Flow from Investing Activities	Rs m	217	-75	-
Cash Flow from Financing Activities	Rs m	-637	-123	-
Net Cash Flow	Rs m	-4	256	-

Current Valuations for GANDHI SPECIAL TUBES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.0, an improvement from the EPS of Rs 31.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 609.1, stands at 15.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at 11.5 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	112.8	137.8
TTM Earnings per share	Rs	31.7	39.0
Diluted earnings per share	Rs	31.7	39.0
Price to Cash Flow	x	10.2	11.5
TTM P/E ratio	x	11.0	15.6
Price / Book Value ratio	x	3.4	3.2
Market Cap	Rs m	4,939	5,786
Dividends per share (Unadj.)	Rs	10.0	12.0

Ratio Analysis for GANDHI SPECIAL TUBES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 8.5x during FY23, from 8.3x 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 443.7x during FY23, from 207.9x 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 declined and down at 26.0% during FY23, from 26.2% 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 34.6% during FY23, from 34.5% 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 23.5% during FY23, from 23.3% 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	8.3	8.5
Debtors’ Days	Days	445	390
Interest coverage	x	207.9	443.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	23.3	23.5
Return on equity	%	26.2	26.0
Return on capital employed	%	34.5	34.6

To see how GANDHI SPECIAL TUBES has performed over the last 5 years, please visit here.

GANDHI SPECIAL TUBES Share Price Performance

Over the last one year, GANDHI SPECIAL TUBES share price has moved up from Rs 364.3 to Rs 609.1, registering a gain of Rs 244.8 or around 67.2%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,445.2 (up 0.2%). Over the last one year it has moved up from 15,924.6 to 21,445.2, a gain of 5,521 points (up 34.7%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for GANDHI SPECIAL TUBES and quarterly results for GANDHI SPECIAL TUBES)