GRAUER & WEIL 2022-23 Annual Report Analysis

Wed, 4 Oct

GRAUER & WEIL 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.

GRAUER & WEIL Income Statement Analysis

• Operating income during the year rose 27.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.5% in FY23 as against 14.6% in FY22.
• Depreciation charges increased by 0.9% and finance costs decreased by 21.9% YoY, respectively.
• Other income grew by 24.1% YoY.
• Net profit for the year grew by 43.4% YoY.
• Net profit margins during the year grew from 10.3% in FY22 to 11.5% in FY23.

GRAUER & WEIL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,682	9,804	27.6%
Other income	Rs m	177	220	24.1%
Total Revenues	Rs m	7,859	10,024	27.5%
Gross profit	Rs m	1,120	1,523	36.0%
Depreciation	Rs m	196	198	0.9%
Interest	Rs m	32	25	-21.9%
Profit before tax	Rs m	1,068	1,520	42.3%
Tax	Rs m	280	390	39.1%
Profit after tax	Rs m	788	1,130	43.4%
Gross profit margin	%	14.6	15.5
Effective tax rate	%	26.3	25.7
Net profit margin	%	10.3	11.5

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GRAUER & WEIL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 16.3%.
• Long-term debt down at Rs 1 million as compared to Rs 1 million during FY22, a fall of 48.5%.
• Current assets rose 16% and stood at Rs 6 billion, while fixed assets rose 16% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 10 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 16%.

GRAUER & WEIL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,824	6,792	16.6
Current Liabilities	Rs m	1,912	2,223	16.3
Long-term Debt	Rs m	1	1	-48.5
Total Liabilities	Rs m	8,240	9,543	15.8
Current assets	Rs m	5,519	6,381	15.6
Fixed Assets	Rs m	2,721	3,161	16.2
Total Assets	Rs m	8,240	9,543	15.8

GRAUER & WEIL Cash Flow Statement Analysis

• GRAUER & WEIL's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 158.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 570.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -235 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -211 million from the Rs 123 million net cash flows seen during FY22.

GRAUER & WEIL 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	439	1,135	158.6%
Cash Flow from Investing Activities	Rs m	-166	-1,111	-
Cash Flow from Financing Activities	Rs m	-150	-235	-
Net Cash Flow	Rs m	123	-211	-

Current Valuations for GRAUER & WEIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.0, an improvement from the EPS of Rs 3.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 124.6, stands at 23.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 14.0 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	33.9	43.2
TTM Earnings per share	Rs	3.5	5.0
Diluted earnings per share	Rs	3.5	5.0
Price to Cash Flow	x	13.5	14.0
TTM P/E ratio	x	16.9	23.3
Price / Book Value ratio	x	2.2	2.7
Market Cap	Rs m	12,854	18,613
Dividends per share (Unadj.)	Rs	0.7	0.8

Ratio Analysis for GRAUER & WEIL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.9x during FY23, from 2.9x 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 61.0x during FY23, from 34.0x 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 16.6% during FY23, from 13.5% 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 22.7% during FY23, from 18.9% 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 12.1% during FY23, from 10.0% 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	2.9	2.9
Debtors’ Days	Days	617	684
Interest coverage	x	34.0	61.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.0	12.1
Return on equity	%	13.5	16.6
Return on capital employed	%	18.9	22.7

To see how GRAUER & WEIL has performed over the last 5 years, please visit here.

GRAUER & WEIL Share Price Performance

Over the last one year, GRAUER & WEIL share price has moved up from Rs 70.7 to Rs 124.6, registering a gain of Rs 53.9 or around 76.2%.

Overall, the S&P BSE SENSEX is up 15.7% over the year.

(To know more, check out historical annual results for GRAUER & WEIL and quarterly results for GRAUER & WEIL)