GODREJ PROPERTIES 2022-23 Annual Report Analysis

Wed, 12 Jul

GODREJ PROPERTIES 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.

GODREJ PROPERTIES Income Statement Analysis

• Operating income during the year rose 23.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.2% in FY23 as against 3.0% in FY22.
• Depreciation charges increased by 12.6% and finance costs increased by 4.0% YoY, respectively.
• Other income grew by 3.4% YoY.
• Net profit for the year grew by 77.0% YoY.
• Net profit margins during the year grew from 19.2% in FY22 to 27.6% in FY23.

GODREJ PROPERTIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	18,249	22,523	23.4%
Other income	Rs m	7,608	7,867	3.4%
Total Revenues	Rs m	25,857	30,390	17.5%
Gross profit	Rs m	-556	2,069	NA
Depreciation	Rs m	214	241	12.6%
Interest	Rs m	1,675	1,742	4.0%
Profit before tax	Rs m	5,163	7,953	54.0%
Tax	Rs m	1,658	1,747	5.4%
Profit after tax	Rs m	3,506	6,206	77.0%
Gross profit margin	%	-3.0	9.2
Effective tax rate	%	32.1	22.0
Net profit margin	%	19.2	27.6

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GODREJ PROPERTIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 138 billion as compared to Rs 80 billion in FY22, thereby witnessing an increase of 72.0%.
• Current assets rose 34% and stood at Rs 202 billion, while fixed assets rose 8% and stood at Rs 26 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 228 billion as against Rs 175 billion during FY22, thereby witnessing a growth of 30%.

GODREJ PROPERTIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	86,707	92,570	6.8
Current Liabilities	Rs m	80,159	137,862	72.0
Long-term Debt	Rs m	10,000	0	-100.0
Total Liabilities	Rs m	174,958	227,738	30.2
Current assets	Rs m	150,955	201,725	33.6
Fixed Assets	Rs m	24,003	26,013	8.4
Total Assets	Rs m	174,958	227,738	30.2

GODREJ PROPERTIES Cash Flow Statement Analysis

• GODREJ PROPERTIES's cash flow from operating activities (CFO) during FY23 stood at Rs -29 billion, an improvement of 533.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 25 billion, an improvement of 1,909.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 8 billion, an improvement of 254% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 5 billion from the Rs -896 million net cash flows seen during FY22.

GODREJ PROPERTIES 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	-4,517	-28,606	-
Cash Flow from Investing Activities	Rs m	1,238	24,881	1,909.1%
Cash Flow from Financing Activities	Rs m	2,353	8,322	253.7%
Net Cash Flow	Rs m	-896	5,357	-

Current Valuations for GODREJ PROPERTIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.3, an improvement from the EPS of Rs 12.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,593.2, stands at 67.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 19.7 times.
• The company's price to cash flow (P/CF) ratio stood at 58.7 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	65.6	81.0
TTM Earnings per share	Rs	12.6	22.3
Diluted earnings per share	Rs	12.6	22.3
Price to Cash Flow	x	125.0	58.7
TTM P/E ratio	x	86.2	67.0
Price / Book Value ratio	x	6.1	4.1
Market Cap	Rs m	527,913	378,262
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GODREJ PROPERTIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 1.9x 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 5.6x during FY23, from 4.1x 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 6.7% during FY23, from 4.0% 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 10.5% during FY23, from 7.1% 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 3.5% during FY23, from 3.0% 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	1.9	1.5
Debtors’ Days	Days	4	6
Interest coverage	x	4.1	5.6
Debt to equity ratio	x	0.1	0.0
Return on assets	%	3.0	3.5
Return on equity	%	4.0	6.7
Return on capital employed	%	7.1	10.5

To see how GODREJ PROPERTIES has performed over the last 5 years, please visit here.

GODREJ PROPERTIES Share Price Performance

Over the last one year, GODREJ PROPERTIES share price has moved up from Rs 1,300.4 to Rs 1,593.2, registering a gain of Rs 292.9 or around 22.5%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,210.9 (down 0.1%). Over the last one year it has moved up from 3,325.9 to 4,210.9, a gain of 885 points (up 26.6%).

Overall, the S&P BSE SENSEX is up 20.5% over the year.

(To know more, check out historical annual results for GODREJ PROPERTIES and quarterly results for GODREJ PROPERTIES)