GOKUL AGRO RESOURCES 2022-23 Annual Report Analysis

Thu, 15 Feb

GOKUL AGRO RESOURCES 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.

GOKUL AGRO RESOURCES Income Statement Analysis

• Operating income during the year rose 3.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 25.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.6% in FY23 as against 2.2% in FY22.
• Depreciation charges decreased by 1.5% and finance costs increased by 68.5% YoY, respectively.
• Other income grew by 1.1% YoY.
• Net profit for the year grew by 7.7% YoY.
• Net profit margins during the year grew from 1.2% in FY22 to 1.2% in FY23.

GOKUL AGRO RESOURCES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	103,841	107,398	3.4%
Other income	Rs m	166	168	1.1%
Total Revenues	Rs m	104,007	107,566	3.4%
Gross profit	Rs m	2,249	2,815	25.2%
Depreciation	Rs m	293	289	-1.5%
Interest	Rs m	562	947	68.5%
Profit before tax	Rs m	1,560	1,747	12.0%
Tax	Rs m	331	423	28.0%
Profit after tax	Rs m	1,229	1,324	7.7%
Gross profit margin	%	2.2	2.6
Effective tax rate	%	21.2	24.2
Net profit margin	%	1.2	1.2

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GOKUL AGRO RESOURCES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 12 billion as compared to Rs 11 billion in FY22, thereby witnessing an increase of 2.4%.
• Long-term debt stood at Rs 3 billion as compared to Rs 811 million during FY22, a growth of 239.7%.
• Current assets rose 10% and stood at Rs 15 billion, while fixed assets rose 80% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 21 billion as against Rs 17 billion during FY22, thereby witnessing a growth of 24%.

GOKUL AGRO RESOURCES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,703	6,506	38.3
Current Liabilities	Rs m	11,372	11,648	2.4
Long-term Debt	Rs m	811	2,755	239.7
Total Liabilities	Rs m	17,171	21,210	23.5
Current assets	Rs m	13,882	15,277	10.0
Fixed Assets	Rs m	3,289	5,933	80.4
Total Assets	Rs m	17,171	21,210	23.5

GOKUL AGRO RESOURCES Cash Flow Statement Analysis

• GOKUL AGRO RESOURCES's cash flow from operating activities (CFO) during FY23 stood at Rs 199 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 336.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 140% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -365 million from the Rs 740 million net cash flows seen during FY22.

GOKUL AGRO RESOURCES 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	600	199	-66.9%
Cash Flow from Investing Activities	Rs m	-457	-1,992	-
Cash Flow from Financing Activities	Rs m	596	1,428	139.6%
Net Cash Flow	Rs m	740	-365	-

Current Valuations for GOKUL AGRO RESOURCES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.0, an improvement from the EPS of Rs 8.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 102.7, stands at 11.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 10.3 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	725.8	727.9
TTM Earnings per share	Rs	8.6	9.0
Diluted earnings per share	Rs	8.3	9.0
Price to Cash Flow	x	7.1	10.3
TTM P/E ratio	x	8.8	11.4
Price / Book Value ratio	x	1.6	2.5
Market Cap	Rs m	7,347	16,577
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GOKUL AGRO RESOURCES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.2x 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 2.8x during FY23, from 3.8x 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 20.4% during FY23, from 26.1% 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 29.1% during FY23, from 38.5% 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 10.7% during FY23, from 10.4% 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	1.2	1.3
Debtors’ Days	Days	73	138
Interest coverage	x	3.8	2.8
Debt to equity ratio	x	0.2	0.4
Return on assets	%	10.4	10.7
Return on equity	%	26.1	20.4
Return on capital employed	%	38.5	29.1

To see how GOKUL AGRO RESOURCES has performed over the last 5 years, please visit here.

GOKUL AGRO RESOURCES Share Price Performance

Over the last one year, GOKUL AGRO RESOURCES share price has moved up from Rs 73.6 to Rs 102.7, registering a gain of Rs 29.2 or around 39.6%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for GOKUL AGRO RESOURCES and quarterly results for GOKUL AGRO RESOURCES)