GTL 2022-23 Annual Report Analysis

Thu, 5 Oct

GTL 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.

GTL Income Statement Analysis

• Operating income during the year fell 3.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 82.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 43.8% in FY23 as against 234.8% in FY22.
• Depreciation charges decreased by 3.2% and finance costs increased by 12.3% YoY, respectively.
• Other income grew by 15.5% YoY.
• Net profit for the year declined by 86.8% YoY.
• Net profit margins during the year declined from 223.2% in FY22 to 30.7% in FY23.

GTL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,935	1,864	-3.7%
Other income	Rs m	49	56	15.5%
Total Revenues	Rs m	1,984	1,920	-3.2%
Gross profit	Rs m	4,543	816	-82.0%
Depreciation	Rs m	44	43	-3.2%
Interest	Rs m	228	257	12.3%
Profit before tax	Rs m	4,319	572	-86.8%
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	4,319	572	-86.8%
Gross profit margin	%	234.8	43.8
Effective tax rate	%	0.0	0.0
Net profit margin	%	223.2	30.7

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GTL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 62 billion as compared to Rs 63 billion in FY22, thereby witnessing an decrease of -0.6%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY22, a growth of 11.1%.
• Current assets rose 43% and stood at Rs 2 billion, while fixed assets fell 31% and stood at Rs 516 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 18%.

GTL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-62,891	-62,320	NA
Current Liabilities	Rs m	62,896	62,493	-0.6
Long-term Debt	Rs m	2,152	2,391	11.1
Total Liabilities	Rs m	2,187	2,579	17.9
Current assets	Rs m	1,439	2,062	43.3
Fixed Assets	Rs m	748	516	-31.0
Total Assets	Rs m	2,187	2,579	17.9

GTL Cash Flow Statement Analysis

• GTL's cash flow from operating activities (CFO) during FY23 stood at Rs 181 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion, an improvement of 73% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 30 million from the Rs -3 million net cash flows seen during FY22.

GTL 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	287	181	-37.1%
Cash Flow from Investing Activities	Rs m	4,626	1,190	-74.3%
Cash Flow from Financing Activities	Rs m	-4,917	-1,341	-
Net Cash Flow	Rs m	-3	30	-

Current Valuations for GTL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.6, an decline from the EPS of Rs 27.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8.3, stands at -23.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 2.4 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	12.3	11.9
TTM Earnings per share	Rs	27.5	3.6
Diluted earnings per share	Rs	27.5	3.6
Price to Cash Flow	x	0.4	2.4
TTM P/E ratio	x	0.4	-23.7
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	2,942	1,466
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GTL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.0x during FY23, from 0.0x 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 deteriorated and stood at 3.2x during FY23, from 19.9x 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 -0.9% during FY23, from -6.9% 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 -1.4% during FY23, from -7.5% 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 declined and down at 32.1% during FY23, from 207.9% 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	0.0	0.0
Debtors’ Days	Days	4	6
Interest coverage	x	19.9	3.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	207.9	32.1
Return on equity	%	-6.9	-0.9
Return on capital employed	%	-7.5	-1.4

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

GTL Share Price Performance

Over the last one year, GTL share price has moved down from Rs 8.3 to Rs 8.3, registering a loss of Rs 0.0 or around 0.2%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 14,595.1 (up 0.8%). Over the last one year it has moved up from 13,052.8 to 14,595.1, a gain of 1,542 points (up 11.8%).

Overall, the S&P BSE SENSEX is up 15.6% over the year.

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