GARWARE HI-TECH FILMS 2022-23 Annual Report Analysis

Tue, 26 Sep

GARWARE HI-TECH FILMS 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.

GARWARE HI-TECH FILMS Income Statement Analysis

• Operating income during the year rose 10.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.8% in FY23 as against 18.3% in FY22.
• Depreciation charges increased by 15.0% and finance costs decreased by 6.9% YoY, respectively.
• Other income grew by 6.9% YoY.
• Net profit for the year declined by 0.6% YoY.
• Net profit margins during the year declined from 12.8% in FY22 to 11.6% in FY23.

GARWARE HI-TECH FILMS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,026	14,380	10.4%
Other income	Rs m	394	422	6.9%
Total Revenues	Rs m	13,421	14,802	10.3%
Gross profit	Rs m	2,381	2,272	-4.6%
Depreciation	Rs m	282	324	15.0%
Interest	Rs m	182	170	-6.9%
Profit before tax	Rs m	2,311	2,199	-4.8%
Tax	Rs m	639	538	-15.8%
Profit after tax	Rs m	1,672	1,661	-0.6%
Gross profit margin	%	18.3	15.8
Effective tax rate	%	27.6	24.5
Net profit margin	%	12.8	11.6

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GARWARE HI-TECH FILMS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -8.9%.
• Long-term debt down at Rs 848 million as compared to Rs 1 billion during FY22, a fall of 34.9%.
• Current assets rose 9% and stood at Rs 7 billion, while fixed assets rose 2% and stood at Rs 16 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 21 billion during FY22, thereby witnessing a growth of 4%.

GARWARE HI-TECH FILMS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	17,109	18,558	8.5
Current Liabilities	Rs m	2,609	2,376	-8.9
Long-term Debt	Rs m	1,302	848	-34.9
Total Liabilities	Rs m	21,332	22,143	3.8
Current assets	Rs m	5,975	6,512	9.0
Fixed Assets	Rs m	15,357	15,631	1.8
Total Assets	Rs m	21,332	22,143	3.8

GARWARE HI-TECH FILMS Cash Flow Statement Analysis

• GARWARE HI-TECH FILMS's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 26.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 20.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -894 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -393 million from the Rs 368 million net cash flows seen during FY22.

GARWARE HI-TECH FILMS 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	1,723	2,180	26.5%
Cash Flow from Investing Activities	Rs m	-1,413	-1,695	-
Cash Flow from Financing Activities	Rs m	58	-894	-
Net Cash Flow	Rs m	368	-393	-

Current Valuations for GARWARE HI-TECH FILMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 71.5, an decline from the EPS of Rs 72.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,295.0, stands at 18.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 8.3 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	560.8	619.0
TTM Earnings per share	Rs	72.0	71.5
Diluted earnings per share	Rs	72.0	71.5
Price to Cash Flow	x	8.3	8.3
TTM P/E ratio	x	9.7	18.2
Price / Book Value ratio	x	1.2	0.9
Market Cap	Rs m	21,306	16,541
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for GARWARE HI-TECH FILMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY23, from 2.3x 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 13.9x during FY23, from 13.7x 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 9.0% during FY23, from 9.8% 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 declined and down at 12.2% during FY23, from 13.5% 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 declined and down at 8.3% during FY23, from 8.7% 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	2.3	2.7
Debtors’ Days	Days	93	76
Interest coverage	x	13.7	13.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	8.7	8.3
Return on equity	%	9.8	9.0
Return on capital employed	%	13.5	12.2

To see how GARWARE HI-TECH FILMS has performed over the last 5 years, please visit here.

GARWARE HI-TECH FILMS Share Price Performance

Over the last one year, GARWARE HI-TECH FILMS share price has moved up from Rs 670.2 to Rs 1,295.0, registering a gain of Rs 624.8 or around 93.2%.

Overall, the S&P BSE SENSEX is up 11.5% over the year.

(To know more, check out historical annual results for GARWARE HI-TECH FILMS and quarterly results for GARWARE HI-TECH FILMS)