GRAPHITE INDIA 2023-24 Annual Report Analysis

Fri, 5 Jul

GRAPHITE INDIA has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

GRAPHITE INDIA Income Statement Analysis

• Operating income during the year fell 7.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 212.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.5% in FY24 as against 8.1% in FY23.
• Depreciation charges increased by 41.0% and finance costs increased by 29.9% YoY, respectively.
• Other income grew by 128.9% YoY.
• Net profit for the year grew by 304.3% YoY.
• Net profit margins during the year grew from 6.3% in FY23 to 27.3% in FY24.

GRAPHITE INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	31,809	29,497	-7.3%
Other income	Rs m	1,330	3,044	128.9%
Total Revenues	Rs m	33,139	32,541	-1.8%
Gross profit	Rs m	2,592	8,098	212.5%
Depreciation	Rs m	570	804	41.0%
Interest	Rs m	132	171	29.9%
Profit before tax	Rs m	3,219	10,166	215.8%
Tax	Rs m	1,228	2,118	72.4%
Profit after tax	Rs m	1,991	8,048	304.3%
Gross profit margin	%	8.1	27.5
Effective tax rate	%	38.2	20.8
Net profit margin	%	6.3	27.3

Don't Miss: Key Information for Long-term Investors

GRAPHITE INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 29 billion as compared to Rs 31 billion in FY23, thereby witnessing an decrease of -7.2%.
• Current assets rose 5% and stood at Rs 66 billion, while fixed assets rose 6% and stood at Rs 29 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 95 billion as against Rs 91 billion during FY23, thereby witnessing a growth of 5%.

GRAPHITE INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	49,638	56,108	13.0
Current Liabilities	Rs m	31,433	29,185	-7.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	90,523	94,955	4.9
Current assets	Rs m	62,970	65,869	4.6
Fixed Assets	Rs m	27,553	29,086	5.6
Total Assets	Rs m	90,523	94,955	4.9

GRAPHITE INDIA Cash Flow Statement Analysis

• GRAPHITE INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 139 million from the Rs -453 million net cash flows seen during FY23.

GRAPHITE INDIA Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-1,604	6,803	-
Cash Flow from Investing Activities	Rs m	3,295	-2,391	-
Cash Flow from Financing Activities	Rs m	-2,134	-4,274	-
Net Cash Flow	Rs m	-453	139	-

Current Valuations for GRAPHITE INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.2, an improvement from the EPS of Rs 10.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 578.2, stands at 14.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 10.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	162.8	151.0
TTM Earnings per share	Rs	10.2	41.2
Diluted earnings per share	Rs	10.2	41.2
Price to Cash Flow	x	20.0	10.1
TTM P/E ratio	x	25.9	14.0
Price / Book Value ratio	x	1.7	1.6
Market Cap	Rs m	81,975	89,316
Dividends per share (Unadj.)	Rs	8.5	11.0

Ratio Analysis for GRAPHITE INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY24, from 2.0x during FY23. 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 60.3x during FY24, from 25.4x during FY23. 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 14.3% during FY24, from 4.0% during FY24. 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 18.4% during FY24, from 6.8% during FY23. 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 8.7% during FY24, from 2.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.0	2.3
Debtors’ Days	Days	6	6
Interest coverage	x	25.4	60.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.3	8.7
Return on equity	%	4.0	14.3
Return on capital employed	%	6.8	18.4

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

GRAPHITE INDIA Share Price Performance

Over the last one year, GRAPHITE INDIA share price has moved up from Rs 396.5 to Rs 578.2, registering a gain of Rs 181.7 or around 45.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,985.3 (up 0.3%). Over the last one year it has moved up from 40,720.4 to 73,985.3, a gain of 33,265 points (up 81.7%).

Overall, the S&P BSE SENSEX is up 22.8% over the year.

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