GREENPLY INDUSTRIES 2022-23 Annual Report Analysis

Tue, 29 Aug

GREENPLY INDUSTRIES 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.

GREENPLY INDUSTRIES Income Statement Analysis

• Operating income during the year rose 5.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 12.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.0% in FY23 as against 9.6% in FY22.
• Depreciation charges decreased by 19.7% and finance costs decreased by 48.4% YoY, respectively.
• Other income grew by 143.5% YoY.
• Net profit for the year grew by 18.7% YoY.
• Net profit margins during the year grew from 5.9% in FY22 to 6.7% in FY23.

GREENPLY INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,628	16,432	5.1%
Other income	Rs m	99	241	143.5%
Total Revenues	Rs m	15,727	16,673	6.0%
Gross profit	Rs m	1,503	1,311	-12.8%
Depreciation	Rs m	258	207	-19.7%
Interest	Rs m	119	62	-48.4%
Profit before tax	Rs m	1,224	1,283	4.8%
Tax	Rs m	303	189	-37.4%
Profit after tax	Rs m	921	1,093	18.7%
Gross profit margin	%	9.6	8.0
Effective tax rate	%	24.7	14.8
Net profit margin	%	5.9	6.7

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GREENPLY INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 5 billion in FY22, thereby witnessing an decrease of -33.8%.
• Long-term debt down at Rs 37 million as compared to Rs 1 billion during FY22, a fall of 97.4%.
• Current assets fell 23% and stood at Rs 4 billion, while fixed assets fell 13% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 10 billion as against Rs 12 billion during FY22, thereby witnessing a fall of 17%.

GREENPLY INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,246	6,028	14.9
Current Liabilities	Rs m	4,588	3,037	-33.8
Long-term Debt	Rs m	1,431	37	-97.4
Total Liabilities	Rs m	11,515	9,503	-17.5
Current assets	Rs m	5,492	4,243	-22.7
Fixed Assets	Rs m	6,023	5,260	-12.7
Total Assets	Rs m	11,515	9,503	-17.5

GREENPLY INDUSTRIES Cash Flow Statement Analysis

• GREENPLY INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 47.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -891 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -373 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 90 million from the Rs 419 million net cash flows seen during FY22.

GREENPLY INDUSTRIES 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	916	1,354	47.8%
Cash Flow from Investing Activities	Rs m	-1,294	-891	-
Cash Flow from Financing Activities	Rs m	804	-373	-
Net Cash Flow	Rs m	419	90	-78.6%

Current Valuations for GREENPLY INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.9, an improvement from the EPS of Rs 7.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 164.9, stands at 22.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 17.3 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	127.4	133.7
TTM Earnings per share	Rs	7.5	8.9
Diluted earnings per share	Rs	7.5	8.9
Price to Cash Flow	x	23.1	17.3
TTM P/E ratio	x	29.5	22.1
Price / Book Value ratio	x	4.9	3.7
Market Cap	Rs m	25,467	22,496
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for GREENPLY INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x 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 improved and stood at 21.8x during FY23, from 11.3x 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 18.1% during FY23, from 17.6% 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 22.2% during FY23, from 20.1% 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 12.2% during FY23, from 9.0% 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	1.2	1.4
Debtors’ Days	Days	435	432
Interest coverage	x	11.3	21.8
Debt to equity ratio	x	0.3	0.0
Return on assets	%	9.0	12.2
Return on equity	%	17.6	18.1
Return on capital employed	%	20.1	22.2

To see how GREENPLY INDUSTRIES has performed over the last 5 years, please visit here.

GREENPLY INDUSTRIES Share Price Performance

Over the last one year, GREENPLY INDUSTRIES share price has moved down from Rs 183.6 to Rs 164.9, registering a loss of Rs 18.7 or around 10.2%.

Overall, the S&P BSE SENSEX is up 10.8% over the year.

(To know more, check out historical annual results for GREENPLY INDUSTRIES and quarterly results for GREENPLY INDUSTRIES)