TAJ GVK 2022-23 Annual Report Analysis

Fri, 25 Aug

TAJ GVK 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.

TAJ GVK Income Statement Analysis

• Operating income during the year rose 68.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 130.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.0% in FY23 as against 22.8% in FY22.
• Depreciation charges decreased by 6.0% and finance costs decreased by 17.0% YoY, respectively.
• Other income grew by 2343.0% YoY.
• Net profit for the year grew by 705.9% YoY.
• Net profit margins during the year grew from 4.4% in FY22 to 20.8% in FY23.

TAJ GVK Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,271	3,836	68.9%
Other income	Rs m	12	288	2,343.0%
Total Revenues	Rs m	2,283	4,124	80.7%
Gross profit	Rs m	517	1,189	130.2%
Depreciation	Rs m	155	146	-6.0%
Interest	Rs m	186	154	-17.0%
Profit before tax	Rs m	187	1,177	528.3%
Tax	Rs m	88	379	329.1%
Profit after tax	Rs m	99	798	705.9%
Gross profit margin	%	22.8	31.0
Effective tax rate	%	47.1	32.2
Net profit margin	%	4.4	20.8

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TAJ GVK Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 3.5%.
• Long-term debt down at Rs 677 million as compared to Rs 1 billion during FY22, a fall of 42.7%.
• Current assets rose 74% and stood at Rs 1 billion, while fixed assets fell 0% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 7 billion during FY22, thereby witnessing a growth of 7%.

TAJ GVK Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,683	4,613	25.2
Current Liabilities	Rs m	1,200	1,242	3.5
Long-term Debt	Rs m	1,181	677	-42.7
Total Liabilities	Rs m	7,050	7,576	7.5
Current assets	Rs m	718	1,245	73.5
Fixed Assets	Rs m	6,332	6,331	0.0
Total Assets	Rs m	7,050	7,576	7.5

TAJ GVK Cash Flow Statement Analysis

• TAJ GVK's cash flow from operating activities (CFO) during FY23 stood at Rs 999 million, an improvement of 88.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -166 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -791 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 42 million from the Rs 231 million net cash flows seen during FY22.

TAJ GVK 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	531	999	88.1%
Cash Flow from Investing Activities	Rs m	5	-166	-
Cash Flow from Financing Activities	Rs m	-305	-791	-
Net Cash Flow	Rs m	231	42	-81.8%

Current Valuations for TAJ GVK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.7, an improvement from the EPS of Rs 1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 232.0, stands at 18.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.8 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	36.2	61.2
TTM Earnings per share	Rs	1.6	12.7
Diluted earnings per share	Rs	1.6	12.7
Price to Cash Flow	x	37.6	11.8
TTM P/E ratio	x	96.5	18.9
Price / Book Value ratio	x	2.2	2.4
Market Cap	Rs m	8,256	11,189
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for TAJ GVK

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x 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 8.6x during FY23, from 2.0x 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 17.3% during FY23, from 2.7% 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 25.2% during FY23, from 7.7% 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 12.6% during FY23, from 4.0% 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	0.6	1.0
Debtors’ Days	Days	154	220
Interest coverage	x	2.0	8.6
Debt to equity ratio	x	0.3	0.1
Return on assets	%	4.0	12.6
Return on equity	%	2.7	17.3
Return on capital employed	%	7.7	25.2

To see how TAJ GVK has performed over the last 5 years, please visit here.

TAJ GVK Share Price Performance

Over the last one year, TAJ GVK share price has moved up from Rs 168.7 to Rs 232.0, registering a gain of Rs 63.3 or around 37.5%.

Overall, the S&P BSE SENSEX is up 9.9% over the year.

(To know more, check out historical annual results for TAJ GVK and quarterly results for TAJ GVK)