GANESHA ECOSPHERE 2022-23 Annual Report Analysis

Fri, 31 Mar

GANESHA ECOSPHERE 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.

GANESHA ECOSPHERE Income Statement Analysis

• Operating income during the year rose 15.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.8% in FY23 as against 11.2% in FY22.
• Depreciation charges increased by 2.6% and finance costs increased by 73.5% YoY, respectively.
• Other income grew by 93.6% YoY.
• Net profit for the year grew by 12.1% YoY.
• Net profit margins during the year declined from 6.1% in FY22 to 5.9% in FY23.

GANESHA ECOSPHERE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	10,214	11,796	15.5%
Other income	Rs m	69	134	93.6%
Total Revenues	Rs m	10,284	11,930	16.0%
Gross profit	Rs m	1,139	1,277	12.1%
Depreciation	Rs m	284	292	2.6%
Interest	Rs m	98	169	73.5%
Profit before tax	Rs m	827	950	14.9%
Tax	Rs m	207	255	23.3%
Profit after tax	Rs m	620	695	12.1%
Gross profit margin	%	11.2	10.8
Effective tax rate	%	25.0	26.9
Net profit margin	%	6.1	5.9

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GANESHA ECOSPHERE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 35.8%.
• Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY22, a growth of 31.8%.
• Current assets rose 14% and stood at Rs 5 billion, while fixed assets rose 26% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 13 billion as against Rs 11 billion during FY22, thereby witnessing a growth of 21%.

GANESHA ECOSPHERE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,736	6,379	11.2
Current Liabilities	Rs m	2,449	3,324	35.8
Long-term Debt	Rs m	2,365	3,118	31.8
Total Liabilities	Rs m	10,947	13,228	20.8
Current assets	Rs m	4,612	5,260	14.1
Fixed Assets	Rs m	6,322	7,968	26.0
Total Assets	Rs m	10,947	13,228	20.8

GANESHA ECOSPHERE Cash Flow Statement Analysis

• GANESHA ECOSPHERE's cash flow from operating activities (CFO) during FY23 stood at Rs 202 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -178 million from the Rs 197 million net cash flows seen during FY22.

GANESHA ECOSPHERE 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	648	202	-68.8%
Cash Flow from Investing Activities	Rs m	-2,545	-1,664	-
Cash Flow from Financing Activities	Rs m	2,075	1,283	-38.2%
Net Cash Flow	Rs m	197	-178	-

Current Valuations for GANESHA ECOSPHERE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.8, an improvement from the EPS of Rs 28.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 846.8, stands at 28.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 16.9 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	467.9	540.4
TTM Earnings per share	Rs	28.4	31.8
Diluted earnings per share	Rs	26.6	29.8
Price to Cash Flow	x	18.8	16.9
TTM P/E ratio	x	27.4	28.4
Price / Book Value ratio	x	2.3	2.6
Market Cap	Rs m	13,345	16,681
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for GANESHA ECOSPHERE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x 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 deteriorated and stood at 6.6x during FY23, from 9.5x 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 10.9% during FY23, from 10.8% 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 11.8% during FY23, from 11.4% 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 6.5% during FY23, from 6.6% 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	1.9	1.6
Debtors’ Days	Days	415	355
Interest coverage	x	9.5	6.6
Debt to equity ratio	x	0.4	0.5
Return on assets	%	6.6	6.5
Return on equity	%	10.8	10.9
Return on capital employed	%	11.4	11.8

To see how GANESHA ECOSPHERE has performed over the last 5 years, please visit here.

GANESHA ECOSPHERE Share Price Performance

Over the last one year, GANESHA ECOSPHERE share price has moved up from Rs 728.3 to Rs 846.8, registering a gain of Rs 118.5 or around 16.3%.

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

(To know more, check out historical annual results for GANESHA ECOSPHERE and quarterly results for GANESHA ECOSPHERE)