GILLETTE INDIA 2022-23 Annual Report Analysis

Fri, 10 Nov

GILLETTE INDIA has announced its results for the year ended June 2023. Let us have a look at the detailed performance review of the company during FY22-23.

GILLETTE INDIA Income Statement Analysis

• Operating income during the year rose 9.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.7% in FY as against 21.3% in FY.
• Depreciation charges increased by 18.0% and finance costs decreased by 26.2% YoY, respectively.
• Other income grew by 170.2% YoY.
• Net profit for the year grew by 22.9% YoY.
• Net profit margins during the year grew from 12.8% in FY to 14.4% in FY.

GILLETTE INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*	% Change
Net Sales	Rs m	22,562	24,771	9.8%
Other income	Rs m	90	243	170.2%
Total Revenues	Rs m	22,651	25,013	10.4%
Gross profit	Rs m	4,812	5,371	11.6%
Depreciation	Rs m	684	807	18.0%
Interest	Rs m	105	78	-26.2%
Profit before tax	Rs m	4,113	4,729	15.0%
Tax	Rs m	1,220	1,172	-3.9%
Profit after tax	Rs m	2,893	3,557	22.9%
Gross profit margin	%	21.3	21.7
Effective tax rate	%	29.7	24.8
Net profit margin	%	12.8	14.4

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GILLETTE INDIA Balance Sheet Analysis

• The company's current liabilities during FY stood at Rs 8 billion as compared to Rs 7 billion in FY, thereby witnessing an increase of 22.9%.
• Current assets rose 31% and stood at Rs 12 billion, while fixed assets fell 0% and stood at Rs 6 billion in FY.
• Overall, the total assets and liabilities for FY stood at Rs 19 billion as against Rs 16 billion during FY, thereby witnessing a growth of 19%.

GILLETTE INDIA Balance Sheet as on June 2023

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*	% Change
Networth	Rs m	8,483	9,699	14.3
Current Liabilities	Rs m	6,638	8,158	22.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	15,752	18,703	18.7
Current assets	Rs m	9,523	12,499	31.2
Fixed Assets	Rs m	6,229	6,205	-0.4
Total Assets	Rs m	15,752	18,703	18.7

GILLETTE INDIA Cash Flow Statement Analysis

• GILLETTE INDIA's cash flow from operating activities (CFO) during FY stood at Rs 5 billion, an improvement of 0.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY stood at Rs -667 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY stood at Rs 2 billion from the Rs 1 billion net cash flows seen during FY.

GILLETTE INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Jun-22	Jun-23
Cash Flow from Operating Activities	Rs m	4,615	4,626	0.2%
Cash Flow from Investing Activities	Rs m	-1,120	-667	-
Cash Flow from Financing Activities	Rs m	-2,249	-2,314	-
Net Cash Flow	Rs m	1,246	1,645	32.0%

Current Valuations for GILLETTE INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 109.1, an improvement from the EPS of Rs 88.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,375.0, stands at 57.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 21.4 times, while the price to sales ratio stands at 8.4 times.
• The company's price to cash flow (P/CF) ratio stood at 36.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*
Sales per share (Unadj.)	Rs	692.3	760.1
TTM Earnings per share	Rs	88.8	109.1
Diluted earnings per share	Rs	88.8	109.2
Price to Cash Flow	x	45.6	36.7
TTM P/E ratio	x	56.4	57.4
Price / Book Value ratio	x	21.2	16.5
Market Cap	Rs m	179,562	160,327
Dividends per share (Unadj.)	Rs	69.0	85.0

Ratio Analysis for GILLETTE INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY, from 1.4x during FY. 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 61.9x during FY, from 40.1x during FY. 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 36.7% during FY, from 34.1% during FY. 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 49.6% during FY, from 49.7% during FY. 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 19.4% during FY, from 19.0% during FY. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*
Current ratio	x	1.4	1.5
Debtors’ Days	Days	415	472
Interest coverage	x	40.1	61.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.0	19.4
Return on equity	%	34.1	36.7
Return on capital employed	%	49.7	49.6

To see how GILLETTE INDIA has performed over the last 5 years, please visit here.

GILLETTE INDIA Share Price Performance

Over the last one year, GILLETTE INDIA share price has moved up from Rs 5,205.9 to Rs 6,375.0, registering a gain of Rs 1,169.1 or around 22.5%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 18,729.8 (down 0.4%). Over the last one year it has moved up from 16,225.1 to 18,729.8, a gain of 2,505 points (up 15.4%).

Overall, the S&P BSE SENSEX is up 5.9% over the year.

(To know more, check out historical annual results for GILLETTE INDIA and quarterly results for GILLETTE INDIA)