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GUJARAT FLUOROCHEMICALS 2022-23 Annual Report Analysis

Wed, 13 Sep

GUJARAT FLUOROCHEMICALS 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 FLUOROCHEMICALS Income Statement Analysis

• Operating income during the year rose 43.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 68.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 34.6% in FY23 as against 29.5% in FY22.
• Depreciation charges increased by 14.9% and finance costs increased by 49.0% YoY, respectively.
• Other income grew by 7.3% YoY.
• Net profit for the year grew by 70.5% YoY.
• Net profit margins during the year grew from 19.6% in FY22 to 23.3% in FY23.

GUJARAT FLUOROCHEMICALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	39,536	56,847	43.8%
Other income	Rs m	1,616	1,734	7.3%
Total Revenues	Rs m	41,152	58,581	42.4%
Gross profit	Rs m	11,674	19,642	68.3%
Depreciation	Rs m	2,054	2,361	14.9%
Interest	Rs m	784	1,168	49.0%
Profit before tax	Rs m	10,452	17,847	70.8%
Tax	Rs m	2,693	4,617	71.4%
Profit after tax	Rs m	7,759	13,230	70.5%
Gross profit margin	%	29.5	34.6
Effective tax rate	%	25.8	25.9
Net profit margin	%	19.6	23.3

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GUJARAT FLUOROCHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 23 billion as compared to Rs 19 billion in FY22, thereby witnessing an increase of 22.7%.
• Long-term debt down at Rs 2 billion as compared to Rs 4 billion during FY22, a fall of 57.9%.
• Current assets rose 42% and stood at Rs 35 billion, while fixed assets rose 10% and stood at Rs 49 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 84 billion as against Rs 69 billion during FY22, thereby witnessing a growth of 22%.

GUJARAT FLUOROCHEMICALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	42,551	55,207	29.7
Current Liabilities	Rs m	19,064	23,389	22.7
Long-term Debt	Rs m	4,354	1,832	-57.9
Total Liabilities	Rs m	68,778	83,711	21.7
Current assets	Rs m	24,381	34,712	42.4
Fixed Assets	Rs m	44,397	48,732	9.8
Total Assets	Rs m	68,778	83,711	21.7

GUJARAT FLUOROCHEMICALS Cash Flow Statement Analysis

• GUJARAT FLUOROCHEMICALS's cash flow from operating activities (CFO) during FY23 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -16 million from the Rs 140 million net cash flows seen during FY22.

GUJARAT FLUOROCHEMICALS 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	7,414	7,389	-0.3%
Cash Flow from Investing Activities	Rs m	-5,839	-4,764	-
Cash Flow from Financing Activities	Rs m	-1,435	-2,641	-
Net Cash Flow	Rs m	140	-16	-

Current Valuations for GUJARAT FLUOROCHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 120.4, an improvement from the EPS of Rs 70.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,978.0, stands at 26.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 5.8 times.
• The company's price to cash flow (P/CF) ratio stood at 22.1 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	359.9	517.5
TTM Earnings per share	Rs	70.6	120.4
Diluted earnings per share	Rs	70.6	120.4
Price to Cash Flow	x	30.8	22.1
TTM P/E ratio	x	38.9	26.8
Price / Book Value ratio	x	4.9	6.2
Market Cap	Rs m	207,658	344,825
Dividends per share (Unadj.)	Rs	4.0	4.0

Ratio Analysis for GUJARAT FLUOROCHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.3x 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 16.3x during FY23, from 14.3x 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 24.0% during FY23, from 18.2% 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 33.3% during FY23, from 24.0% 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 17.2% during FY23, from 12.4% 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	1.3	1.5
Debtors’ Days	Days	718	711
Interest coverage	x	14.3	16.3
Debt to equity ratio	x	0.1	0.0
Return on assets	%	12.4	17.2
Return on equity	%	18.2	24.0
Return on capital employed	%	24.0	33.3

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

GUJARAT FLUOROCHEMICALS Share Price Performance

Over the last one year, GUJARAT FLUOROCHEMICALS share price has moved down from Rs 3,569.0 to Rs 2,978.0, registering a loss of Rs 591.0 or around 16.6%.

Overall, the S&P BSE SENSEX is up 12.0% over the year.

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