GUJARAT ALKALIES 2023-24 Annual Report Analysis

Mon, 9 Sep

GUJARAT ALKALIES 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.

GUJARAT ALKALIES Income Statement Analysis

• Operating income during the year fell 15.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 96.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.8% in FY24 as against 21.0% in FY23.
• Depreciation charges increased by 36.7% and finance costs increased by 129.0% YoY, respectively.
• Other income grew by 113.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 9.1% in FY23 to 6.2% in FY24.

GUJARAT ALKALIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	45,165	38,066	-15.7%
Other income	Rs m	422	901	113.7%
Total Revenues	Rs m	45,587	38,967	-14.5%
Gross profit	Rs m	9,485	314	-96.7%
Depreciation	Rs m	2,761	3,774	36.7%
Interest	Rs m	195	446	129.0%
Profit before tax	Rs m	6,951	-3,005	NA
Tax	Rs m	2,855	-636	NA
Profit after tax	Rs m	4,096	-2,368	NA
Gross profit margin	%	21.0	0.8
Effective tax rate	%	41.1	21.2
Net profit margin	%	9.1	-6.2

Dear Reader: If You Invest in Midcap Stocks, this is for You

GUJARAT ALKALIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 7 billion as compared to Rs 8 billion in FY23, thereby witnessing an decrease of -11.3%.
• Long-term debt down at Rs 3 billion as compared to Rs 5 billion during FY23, a fall of 25.3%.
• Current assets fell 35% and stood at Rs 9 billion, while fixed assets rose 3% and stood at Rs 71 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 80 billion as against Rs 83 billion during FY23, thereby witnessing a fall of 4%.

GUJARAT ALKALIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	61,392	60,755	-1.0
Current Liabilities	Rs m	8,399	7,446	-11.3
Long-term Debt	Rs m	4,589	3,428	-25.3
Total Liabilities	Rs m	83,347	80,234	-3.7
Current assets	Rs m	14,098	9,135	-35.2
Fixed Assets	Rs m	69,250	71,099	2.7
Total Assets	Rs m	83,347	80,234	-3.7

GUJARAT ALKALIES Cash Flow Statement Analysis

• GUJARAT ALKALIES's cash flow from operating activities (CFO) during FY24 stood at Rs 666 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -900 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -3 billion from the Rs 2 billion net cash flows seen during FY23.

GUJARAT ALKALIES 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	9,600	666	-93.1%
Cash Flow from Investing Activities	Rs m	-6,609	-900	-
Cash Flow from Financing Activities	Rs m	-1,403	-2,773	-
Net Cash Flow	Rs m	1,578	-3,008	-

Current Valuations for GUJARAT ALKALIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -32.2, an decline from the EPS of Rs 55.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 819.5, stands at -48.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 38.0 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	615.0	518.3
TTM Earnings per share	Rs	55.8	-32.2
Diluted earnings per share	Rs	55.8	-32.3
Price to Cash Flow	x	6.3	38.0
TTM P/E ratio	x	7.5	-48.7
Price / Book Value ratio	x	1.0	0.9
Market Cap	Rs m	58,779	53,449
Dividends per share (Unadj.)	Rs	23.6	13.9

Ratio Analysis for GUJARAT ALKALIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.7x 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 -5.7x during FY24, from 36.7x 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 -3.9% during FY24, from 6.7% 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 -4.0% during FY24, from 10.8% 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 declined and down at -2.4% during FY24, from 5.1% 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	1.7	1.2
Debtors’ Days	Days	230	170
Interest coverage	x	36.7	-5.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.1	-2.4
Return on equity	%	6.7	-3.9
Return on capital employed	%	10.8	-4.0

To see how GUJARAT ALKALIES has performed over the last 5 years, please visit here.

GUJARAT ALKALIES Share Price Performance

Over the last one year, GUJARAT ALKALIES share price has moved up from Rs 739.7 to Rs 819.5, registering a gain of Rs 79.8 or around 10.8%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

(To know more, check out historical annual results for GUJARAT ALKALIES and quarterly results for GUJARAT ALKALIES)