GOLDSTAR POWER 2023-24 Annual Report Analysis

Tue, 5 Nov

GOLDSTAR POWER 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.

GOLDSTAR POWER Income Statement Analysis

• Operating income during the year rose 0.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.5% in FY24 as against 11.9% in FY23.
• Depreciation charges decreased by 1.4% and finance costs increased by 24.9% YoY, respectively.
• Other income grew by 0.8% YoY.
• Net profit for the year grew by 8.6% YoY.
• Net profit margins during the year grew from 7.5% in FY23 to 8.1% in FY24.

GOLDSTAR POWER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	500	502	0.4%
Other income	Rs m	21	22	0.8%
Total Revenues	Rs m	521	523	0.4%
Gross profit	Rs m	59	68	13.9%
Depreciation	Rs m	16	16	-1.4%
Interest	Rs m	15	18	24.9%
Profit before tax	Rs m	50	55	10.0%
Tax	Rs m	13	15	14.0%
Profit after tax	Rs m	37	40	8.6%
Gross profit margin	%	11.9	13.5
Effective tax rate	%	25.5	26.5
Net profit margin	%	7.5	8.1

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GOLDSTAR POWER Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 192 million as compared to Rs 131 million in FY23, thereby witnessing an increase of 46.3%.
• Long-term debt down at Rs 48 million as compared to Rs 59 million during FY23, a fall of 18.4%.
• Current assets fell 2% and stood at Rs 277 million, while fixed assets rose 62% and stood at Rs 261 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 538 million as against Rs 445 million during FY23, thereby witnessing a growth of 21%.

GOLDSTAR POWER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	241	282	16.8
Current Liabilities	Rs m	131	192	46.3
Long-term Debt	Rs m	59	48	-18.4
Total Liabilities	Rs m	445	538	21.0
Current assets	Rs m	284	277	-2.2
Fixed Assets	Rs m	161	261	61.9
Total Assets	Rs m	445	538	21.0

GOLDSTAR POWER Cash Flow Statement Analysis

• GOLDSTAR POWER's cash flow from operating activities (CFO) during FY24 stood at Rs 80 million, an improvement of 22.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -115 million, an improvement of 2,034.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 32 million, an improvement of 154% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -3 million from the Rs 0 million net cash flows seen during FY23.

GOLDSTAR POWER 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	65	80	22.2%
Cash Flow from Investing Activities	Rs m	-5	-115	-
Cash Flow from Financing Activities	Rs m	-60	32	-
Net Cash Flow	Rs m	0	-3	-

Current Valuations for GOLDSTAR POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an decline from the EPS of Rs 0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 11.3, stands at 67.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.6 times, while the price to sales ratio stands at 5.4 times.
• The company's price to cash flow (P/CF) ratio stood at 59.7 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	2.6	2.1
TTM Earnings per share	Rs	0.2	0.2
Diluted earnings per share	Rs	0.2	0.2
Price to Cash Flow	x	0.0	59.7
TTM P/E ratio	x	0.0	67.2
Price / Book Value ratio	x	0.0	11.9
Market Cap	Rs m	0	3,352
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GOLDSTAR POWER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 2.2x 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 4.0x during FY24, from 4.4x 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 declined and down at 14.4% during FY24, from 15.4% 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 22.2% during FY24, from 21.6% 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 10.9% during FY24, from 11.7% 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	2.2	1.4
Debtors’ Days	Days	810	842
Interest coverage	x	4.4	4.0
Debt to equity ratio	x	0.2	0.2
Return on assets	%	11.7	10.9
Return on equity	%	15.4	14.4
Return on capital employed	%	21.6	22.2

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

GOLDSTAR POWER Share Price Performance

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

Overall, the NIFTY 50 is up 0.9% over the year.

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