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GALA PRECISION ENGINEERING LTD. 2023-24 Annual Report Analysis

Wed, 11 Sep

GALA PRECISION ENGINEERING LTD. 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.

GALA PRECISION ENGINEERING LTD. Income Statement Analysis

• Operating income during the year rose 22.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.2% in FY24 as against 22.6% in FY23.
• Depreciation charges increased by 12.8% and finance costs increased by 19.2% YoY, respectively.
• Other income grew by 13.3% YoY.
• Net profit for the year declined by 9.2% YoY.
• Net profit margins during the year declined from 14.6% in FY23 to 10.9% in FY24.

GALA PRECISION ENGINEERING LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,655	2,025	22.4%
Other income	Rs m	16	18	13.3%
Total Revenues	Rs m	1,671	2,044	22.3%
Gross profit	Rs m	375	369	-1.5%
Depreciation	Rs m	61	69	12.8%
Interest	Rs m	55	66	19.2%
Profit before tax	Rs m	275	253	-7.9%
Tax	Rs m	32	33	1.3%
Profit after tax	Rs m	242	220	-9.2%
Gross profit margin	%	22.6	18.2
Effective tax rate	%	11.8	13.0
Net profit margin	%	14.6	10.9

For Investors: Our Big Prediction

GALA PRECISION ENGINEERING LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 677 million as compared to Rs 564 million in FY23, thereby witnessing an increase of 19.9%.
• Long-term debt down at Rs 92 million as compared to Rs 205 million during FY23, a fall of 55.1%.
• Current assets rose 12% and stood at Rs 1 billion, while fixed assets rose 9% and stood at Rs 744 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 11%.

GALA PRECISION ENGINEERING LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	837	1,048	25.3
Current Liabilities	Rs m	564	677	19.9
Long-term Debt	Rs m	205	92	-55.1
Total Liabilities	Rs m	1,704	1,887	10.7
Current assets	Rs m	1,022	1,143	11.9
Fixed Assets	Rs m	682	744	9.0
Total Assets	Rs m	1,704	1,887	10.7

GALA PRECISION ENGINEERING LTD. Cash Flow Statement Analysis

• GALA PRECISION ENGINEERING LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 156 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -30 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -118 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 8 million from the Rs 0 million net cash flows seen during FY23.

GALA PRECISION ENGINEERING LTD. 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	160	156	-2.3%
Cash Flow from Investing Activities	Rs m	-124	-30	-
Cash Flow from Financing Activities	Rs m	-36	-118	-
Net Cash Flow	Rs m	0	8	21,125.0%

Current Valuations for GALA PRECISION ENGINEERING LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.8, an decline from the EPS of Rs 96.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 720.2, stands at 41.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.7 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 31.6 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	656.6	200.3
TTM Earnings per share	Rs	96.1	21.8
Diluted earnings per share	Rs	19.1	17.4
Price to Cash Flow	x	0.0	31.6
TTM P/E ratio	x	0.0	41.5
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	9,125
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GALA PRECISION ENGINEERING LTD.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY24, from 1.8x 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 deteriorated and stood at 4.8x during FY24, from 6.0x 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 declined and down at 21.0% during FY24, from 28.9% 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 declined and down at 28.0% during FY24, from 31.7% 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 declined and down at 15.2% during FY24, from 17.5% 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	1.8	1.7
Debtors’ Days	Days	66	85
Interest coverage	x	6.0	4.8
Debt to equity ratio	x	0.2	0.1
Return on assets	%	17.5	15.2
Return on equity	%	28.9	21.0
Return on capital employed	%	31.7	28.0

To see how GALA PRECISION ENGINEERING LTD. has performed over the last 5 years, please visit here.

GALA PRECISION ENGINEERING LTD. Share Price Performance

Over the last one year, GALA PRECISION ENGINEERING LTD. share price has moved up from Rs 0.0 to Rs 720.2, registering a gain of Rs 720.2 or around 0.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,035.6 (up 0.7%). Over the last one year it has moved up from 47,746.4 to 72,035.6, a gain of 24,289 points (up 50.9%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for GALA PRECISION ENGINEERING LTD. and quarterly results for GALA PRECISION ENGINEERING LTD.)