GUJARAT GAS 2022-23 Annual Report Analysis

Thu, 7 Sep

GUJARAT GAS 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.

GUJARAT GAS Income Statement Analysis

• Operating income during the year rose 0.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.9% in FY23 as against 13.0% in FY22.
• Depreciation charges increased by 11.3% and finance costs decreased by 18.3% YoY, respectively.
• Other income grew by 11.5% YoY.
• Net profit for the year grew by 18.7% YoY.
• Net profit margins during the year grew from 8.0% in FY22 to 9.4% in FY23.

GUJARAT GAS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	161,251	162,126	0.5%
Other income	Rs m	909	1,013	11.5%
Total Revenues	Rs m	162,160	163,140	0.6%
Gross profit	Rs m	20,909	24,213	15.8%
Depreciation	Rs m	3,849	4,283	11.3%
Interest	Rs m	817	668	-18.3%
Profit before tax	Rs m	17,152	20,276	18.2%
Tax	Rs m	4,278	4,992	16.7%
Profit after tax	Rs m	12,874	15,284	18.7%
Gross profit margin	%	13.0	14.9
Effective tax rate	%	24.9	24.6
Net profit margin	%	8.0	9.4

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GUJARAT GAS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 28 billion as compared to Rs 25 billion in FY22, thereby witnessing an increase of 11.7%.
• Current assets rose 42% and stood at Rs 20 billion, while fixed assets rose 9% and stood at Rs 89 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 109 billion as against Rs 96 billion during FY22, thereby witnessing a growth of 14%.

GUJARAT GAS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	56,299	70,280	24.8
Current Liabilities	Rs m	25,108	28,034	11.7
Long-term Debt	Rs m	3,910	0	-100.0
Total Liabilities	Rs m	95,873	109,274	14.0
Current assets	Rs m	13,900	19,792	42.4
Fixed Assets	Rs m	81,973	89,482	9.2
Total Assets	Rs m	95,873	109,274	14.0

GUJARAT GAS Cash Flow Statement Analysis

• GUJARAT GAS's cash flow from operating activities (CFO) during FY23 stood at Rs 24 billion, an improvement of 43.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -10 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 7 billion from the Rs -3 billion net cash flows seen during FY22.

GUJARAT GAS 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	16,617	23,755	43.0%
Cash Flow from Investing Activities	Rs m	-12,935	-10,391	-
Cash Flow from Financing Activities	Rs m	-6,284	-6,784	-
Net Cash Flow	Rs m	-2,602	6,581	-

Current Valuations for GUJARAT GAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.2, an improvement from the EPS of Rs 18.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 461.1, stands at 23.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 17.4 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	234.2	235.5
TTM Earnings per share	Rs	18.7	22.2
Diluted earnings per share	Rs	18.7	22.2
Price to Cash Flow	x	20.7	17.4
TTM P/E ratio	x	26.9	23.3
Price / Book Value ratio	x	7.7	4.8
Market Cap	Rs m	435,338	339,858
Dividends per share (Unadj.)	Rs	2.0	6.7

Ratio Analysis for GUJARAT GAS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.7x during FY23, from 0.6x 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 31.4x during FY23, from 22.0x 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 declined and down at 21.7% during FY23, from 22.9% 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 29.8% during FY23, from 29.8% 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 14.6% during FY23, from 14.3% 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	0.6	0.7
Debtors’ Days	Days	2	2
Interest coverage	x	22.0	31.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	14.3	14.6
Return on equity	%	22.9	21.7
Return on capital employed	%	29.8	29.8

To see how GUJARAT GAS has performed over the last 5 years, please visit here.

GUJARAT GAS Share Price Performance

Over the last one year, GUJARAT GAS share price has moved down from Rs 487.4 to Rs 461.1, registering a loss of Rs 26.3 or around 5.4%.

Overall, the S&P BSE SENSEX is up 11.2% over the year.

(To know more, check out historical annual results for GUJARAT GAS and quarterly results for GUJARAT GAS)