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GRANULES INDIA 2022-23 Annual Report Analysis
Fri, 21 Jul

GRANULES INDIA 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.

GRANULES INDIA Income Statement Analysis

  • Operating income during the year rose 19.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 26.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.2% in FY23 as against 19.2% in FY22.
  • Depreciation charges increased by 16.3% and finance costs increased by 141.0% YoY, respectively.
  • Other income declined by 21.6% YoY.
  • Net profit for the year grew by 25.2% YoY.
  • Net profit margins during the year grew from 11.0% in FY22 to 11.4% in FY23.

GRANULES INDIA Income Statement 2022-23

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Net Sales Rs m 37,649 45,119 19.8%
Other income Rs m 182 143 -21.6%
Total Revenues Rs m 37,831 45,262 19.6%
Gross profit Rs m 7,216 9,133 26.6%
Depreciation Rs m 1,586 1,845 16.3%
Interest Rs m 232 559 141.0%
Profit before tax Rs m 5,580 6,872 23.1%
Tax Rs m 1,452 1,706 17.4%
Profit after tax Rs m 4,128 5,166 25.2%
Gross profit margin % 19.2 20.2
Effective tax rate % 26.0 24.8
Net profit margin % 11.0 11.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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GRANULES INDIA Balance Sheet Analysis

  • The company's current liabilities during FY23 stood at Rs 18 billion as compared to Rs 16 billion in FY22, thereby witnessing an increase of 10.5%.
  • Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY22, a fall of 36.4%.
  • Current assets rose 3% and stood at Rs 26 billion, while fixed assets rose 16% and stood at Rs 23 billion in FY23.
  • Overall, the total assets and liabilities for FY23 stood at Rs 49 billion as against Rs 45 billion during FY22, thereby witnessing a growth of 9%.

GRANULES INDIA Balance Sheet as on March 2023

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Networth Rs m 25,698 28,169 9.6
 
Current Liabilities Rs m 16,416 18,135 10.5
Long-term Debt Rs m 2,337 1,486 -36.4
Total Liabilities Rs m 45,115 49,031 8.7
 
Current assets Rs m 25,050 25,741 2.8
Fixed Assets Rs m 20,065 23,290 16.1
Total Assets Rs m 45,115 49,031 8.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



GRANULES INDIA Cash Flow Statement Analysis

  • GRANULES INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 7 billion, an improvement of 122.5% 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 -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs 1 billion net cash flows seen during FY22.

GRANULES INDIA 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 3,321 7,387 122.5%
Cash Flow from Investing Activities Rs m -3,801 -1,914 -
Cash Flow from Financing Activities Rs m 1,900 -4,403 -
Net Cash Flow Rs m 1,429 1,068 -25.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GRANULES INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.3, an improvement from the EPS of Rs 16.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 309.8, stands at 14.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.5 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 151.8 186.4
TTM Earnings per share Rs 16.6 21.3
Diluted earnings per share Rs 17.1 21.3
Price to Cash Flow x 13.0 10.5
TTM P/E ratio x 18.0 14.5
Price / Book Value ratio x 3.2 2.6
Market Cap Rs m 83,076 73,611
Dividends per share (Unadj.) Rs 1.5 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GRANULES INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.5x 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 13.3x during FY23, from 25.0x 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 18.3% during FY23, from 16.1% 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 improved and stood at 25.1% during FY23, from 20.7% 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 11.7% during FY23, from 9.7% 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 1.5 1.4
Debtors’ Days Days 90 77
Interest coverage x 25.0 13.3
Debt to equity ratio x 0.1 0.1
Return on assets % 9.7 11.7
Return on equity % 16.1 18.3
Return on capital employed % 20.7 25.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how GRANULES INDIA has performed over the last 5 years, please visit here.

GRANULES INDIA Share Price Performance

Over the last one year, GRANULES INDIA share price has moved up from Rs 308.7 to Rs 309.8, registering a gain of Rs 1.1 or around 0.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,692.7 (down 0.2%). Over the last one year it has moved up from 22,705.9 to 26,692.7, a gain of 3,987 points (up 17.6%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for GRANULES INDIA and quarterly results for GRANULES INDIA)

Annual Report FAQs

What is the current share price of GRANULES INDIA?

GRANULES INDIA currently trades at Rs 424.3 per share. You can check out the latest share price performance of GRANULES INDIA here...

What was the revenue of GRANULES INDIA in FY23? How does it compare to earlier years?

The revenues of GRANULES INDIA stood at Rs 45,262 m in FY23, which was up 19.6% compared to Rs 37,831 m reported in FY22.

GRANULES INDIA's revenue has grown from Rs 23,059 m in FY19 to Rs 45,262 m in FY23.

Over the past 5 years, the revenue of GRANULES INDIA has grown at a CAGR of 18.4%.

What was the net profit of GRANULES INDIA in FY23? How does it compare to earlier years?

The net profit of GRANULES INDIA stood at Rs 5,166 m in FY23, which was up 25.2% compared to Rs 4,128 m reported in FY22.

This compares to a net profit of Rs 5,495 m in FY21 and a net profit of Rs 3,099 m in FY20.

Over the past 5 years, GRANULES INDIA net profit has grown at a CAGR of 28.8%.

What does the cash flow statement of GRANULES INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of GRANULES INDIA reveals:

  • Cash flow from operations increased in FY23 and stood at Rs 7,387 m as compared to Rs 3,321 m in FY22.
  • Cash flow from investments increased in FY23 and stood at Rs -1,914 m as compared to Rs -3,801 m in FY22.
  • Cash flow from financial activity decreased in FY23 and stood at Rs -4,403 m as compared to Rs 1,900 m in FY22.

Here's the cash flow statement of GRANULES INDIA for the past 5 years.

(Rs m)FY19FY20FY21FY22FY23
From Operations2,6224,7624,3253,3217,387
From Investments-2,698-1,606-2,771-3,801-1,914
From Financial Activity-174-2,129-2,9931,900-4,403
Net Cashflow-2501,029-1,4411,4291,068

What does the Key Ratio analysis of GRANULES INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of GRANULES INDIA reveals:

  • Operating profit margins witnessed a fall and down at 20.2% in FY23 as against 19.2% in FY22.
  • Net profit margins grew from 11.0% in FY22 to 11.4% in FY23.
  • Debt to Equity ratio for FY23 stood at 0.1 as compared to 0.1 in FY22.

Here's the ratio/financial analysis of GRANULES INDIA for the past 5 years.

 FY19FY20FY21FY22FY23
Operating Profit Margin (%)16.821.326.419.220.2
Net Profit Margin (%)8.211.917.011.011.4
Debt to Equity Ratio (x)0.30.20.20.10.1

 

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