GULSHAN POLYOLS 2022-23 Annual Report Analysis

Thu, 21 Sep

GULSHAN POLYOLS 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.

GULSHAN POLYOLS Income Statement Analysis

• Operating income during the year rose 7.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 41.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.5% in FY23 as against 13.6% in FY22.
• Depreciation charges decreased by 11.3% and finance costs increased by 23.5% YoY, respectively.
• Other income grew by 245.0% YoY.
• Net profit for the year declined by 47.0% YoY.
• Net profit margins during the year declined from 7.7% in FY22 to 3.8% in FY23.

GULSHAN POLYOLS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	11,007	11,797	7.2%
Other income	Rs m	20	71	245.0%
Total Revenues	Rs m	11,028	11,868	7.6%
Gross profit	Rs m	1,501	880	-41.4%
Depreciation	Rs m	324	287	-11.3%
Interest	Rs m	50	61	23.5%
Profit before tax	Rs m	1,148	602	-47.6%
Tax	Rs m	295	150	-49.2%
Profit after tax	Rs m	852	452	-47.0%
Gross profit margin	%	13.6	7.5
Effective tax rate	%	25.7	24.9
Net profit margin	%	7.7	3.8

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GULSHAN POLYOLS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 53.8%.
• Long-term debt stood at Rs 1 billion as compared to Rs 473 million during FY22, a growth of 169.5%.
• Current assets rose 2% and stood at Rs 4 billion, while fixed assets rose 52% and stood at Rs 6 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 28%.

GULSHAN POLYOLS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,354	5,749	7.4
Current Liabilities	Rs m	1,734	2,666	53.8
Long-term Debt	Rs m	473	1,275	169.5
Total Liabilities	Rs m	7,739	9,877	27.6
Current assets	Rs m	3,756	3,823	1.8
Fixed Assets	Rs m	3,983	6,054	52.0
Total Assets	Rs m	7,739	9,877	27.6

GULSHAN POLYOLS Cash Flow Statement Analysis

• GULSHAN POLYOLS's cash flow from operating activities (CFO) during FY23 stood at Rs 154 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 81.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs 946 million net cash flows seen during FY22.

GULSHAN POLYOLS 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	609	154	-74.7%
Cash Flow from Investing Activities	Rs m	-1,362	-2,472	-
Cash Flow from Financing Activities	Rs m	1,699	1,243	-26.8%
Net Cash Flow	Rs m	946	-1,075	-

Current Valuations for GULSHAN POLYOLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.7, an decline from the EPS of Rs 16.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 218.5, stands at 34.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 20.0 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	211.8	227.0
TTM Earnings per share	Rs	16.4	8.7
Diluted earnings per share	Rs	13.7	7.2
Price to Cash Flow	x	18.6	20.0
TTM P/E ratio	x	25.7	34.3
Price / Book Value ratio	x	2.5	2.6
Market Cap	Rs m	13,536	14,810
Dividends per share (Unadj.)	Rs	2.0	0.5

Ratio Analysis for GULSHAN POLYOLS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 2.2x 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 deteriorated and stood at 10.8x during FY23, from 24.1x 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 7.9% during FY23, from 15.9% 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 9.4% during FY23, from 20.6% 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 5.2% during FY23, from 11.7% 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	2.2	1.4
Debtors’ Days	Days	397	438
Interest coverage	x	24.1	10.8
Debt to equity ratio	x	0.1	0.2
Return on assets	%	11.7	5.2
Return on equity	%	15.9	7.9
Return on capital employed	%	20.6	9.4

To see how GULSHAN POLYOLS has performed over the last 5 years, please visit here.

GULSHAN POLYOLS Share Price Performance

Over the last one year, GULSHAN POLYOLS share price has moved down from Rs 265.8 to Rs 218.5, registering a loss of Rs 47.3 or around 17.8%.

Overall, the S&P BSE SENSEX is up 11.0% over the year.

(To know more, check out historical annual results for GULSHAN POLYOLS and quarterly results for GULSHAN POLYOLS)