GODFREY PHILLIPS 2023-24 Annual Report Analysis

Fri, 16 Aug

GODFREY PHILLIPS 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.

GODFREY PHILLIPS Income Statement Analysis

• Operating income during the year rose 23.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 29.8% in FY24 as against 31.0% in FY23.
• Depreciation charges decreased by 5.0% and finance costs decreased by 9.9% YoY, respectively.
• Other income grew by 27.5% YoY.
• Net profit for the year grew by 28.0% YoY.
• Net profit margins during the year grew from 24.1% in FY23 to 25.0% in FY24.

GODFREY PHILLIPS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	28,652	35,345	23.4%
Other income	Rs m	1,681	2,143	27.5%
Total Revenues	Rs m	30,332	37,488	23.6%
Gross profit	Rs m	8,872	10,528	18.7%
Depreciation	Rs m	1,536	1,460	-5.0%
Interest	Rs m	290	261	-9.9%
Profit before tax	Rs m	8,726	10,950	25.5%
Tax	Rs m	1,822	2,110	15.8%
Profit after tax	Rs m	6,904	8,840	28.0%
Gross profit margin	%	31.0	29.8
Effective tax rate	%	20.9	19.3
Net profit margin	%	24.1	25.0

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GODFREY PHILLIPS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 12 billion as compared to Rs 10 billion in FY23, thereby witnessing an increase of 16.7%.
• Long-term debt stood at Rs 13 million as compared to Rs 12 million during FY23, a growth of 10.3%.
• Current assets rose 42% and stood at Rs 20 billion, while fixed assets rose 8% and stood at Rs 38 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 58 billion as against Rs 50 billion during FY23, thereby witnessing a growth of 18%.

GODFREY PHILLIPS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	35,479	42,276	19.2
Current Liabilities	Rs m	10,398	12,139	16.7
Long-term Debt	Rs m	12	13	10.3
Total Liabilities	Rs m	49,682	58,433	17.6
Current assets	Rs m	14,194	20,116	41.7
Fixed Assets	Rs m	35,488	38,316	8.0
Total Assets	Rs m	49,682	58,433	17.6

GODFREY PHILLIPS Cash Flow Statement Analysis

• GODFREY PHILLIPS's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 554 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 -38 million from the Rs -111 million net cash flows seen during FY23.

GODFREY PHILLIPS 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	7,359	2,902	-60.6%
Cash Flow from Investing Activities	Rs m	-5,408	554	-
Cash Flow from Financing Activities	Rs m	-2,063	-3,495	-
Net Cash Flow	Rs m	-111	-38	-

Current Valuations for GODFREY PHILLIPS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 170.0, an improvement from the EPS of Rs 132.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,281.6, stands at 32.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 6.3 times.
• The company's price to cash flow (P/CF) ratio stood at 13.4 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	551.1	679.9
TTM Earnings per share	Rs	132.8	170.0
Diluted earnings per share	Rs	132.8	170.0
Price to Cash Flow	x	11.2	13.4
TTM P/E ratio	x	15.6	32.7
Price / Book Value ratio	x	2.3	3.3
Market Cap	Rs m	81,809	137,594
Dividends per share (Unadj.)	Rs	44.0	56.0

Ratio Analysis for GODFREY PHILLIPS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.4x 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 42.9x during FY24, from 31.1x 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 20.9% during FY24, from 19.5% 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 26.5% during FY24, from 25.4% 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 15.6% during FY24, from 14.5% 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	1.4	1.7
Debtors’ Days	Days	190	179
Interest coverage	x	31.1	42.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.5	15.6
Return on equity	%	19.5	20.9
Return on capital employed	%	25.4	26.5

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

GODFREY PHILLIPS Share Price Performance

Over the last one year, GODFREY PHILLIPS share price has moved up from Rs 2,038.9 to Rs 4,281.6, registering a gain of Rs 2,242.8 or around 110.0%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

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