GOODYEAR (I) 2023-24 Annual Report Analysis

Mon, 8 Jul

GOODYEAR (I) 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.

GOODYEAR (I) Income Statement Analysis

• Operating income during the year fell 12.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 17.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.7% in FY24 as against 7.1% in FY23.
• Depreciation charges increased by 2.4% and finance costs increased by 9.6% YoY, respectively.
• Other income grew by 4.0% YoY.
• Net profit for the year declined by 22.8% YoY.
• Net profit margins during the year declined from 4.2% in FY23 to 3.7% in FY24.

GOODYEAR (I) Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	29,275	25,517	-12.8%
Other income	Rs m	163	170	4.0%
Total Revenues	Rs m	29,438	25,687	-12.7%
Gross profit	Rs m	2,069	1,706	-17.6%
Depreciation	Rs m	540	553	2.4%
Interest	Rs m	39	42	9.6%
Profit before tax	Rs m	1,654	1,280	-22.6%
Tax	Rs m	425	332	-22.0%
Profit after tax	Rs m	1,229	949	-22.8%
Gross profit margin	%	7.1	6.7
Effective tax rate	%	25.7	25.9
Net profit margin	%	4.2	3.7

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GOODYEAR (I) Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 6 billion in FY23, thereby witnessing an decrease of -9.0%.
• Current assets fell 9% and stood at Rs 7 billion, while fixed assets rose 2% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 19 billion as against Rs 19 billion during FY23, thereby witnessing a fall of 3%.

GOODYEAR (I) Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,058	5,815	-4.0
Current Liabilities	Rs m	6,197	5,641	-9.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	19,093	18,614	-2.5
Current assets	Rs m	7,938	7,189	-9.4
Fixed Assets	Rs m	11,156	11,426	2.4
Total Assets	Rs m	19,093	18,614	-2.5

GOODYEAR (I) Cash Flow Statement Analysis

• GOODYEAR (I)'s cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 20.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -338 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 46% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -288 million from the Rs -380 million net cash flows seen during FY23.

GOODYEAR (I) 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	1,122	1,349	20.2%
Cash Flow from Investing Activities	Rs m	906	-338	-
Cash Flow from Financing Activities	Rs m	-2,407	-1,298	-
Net Cash Flow	Rs m	-380	-288	-

Current Valuations for GOODYEAR (I)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.1, an decline from the EPS of Rs 53.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,193.0, stands at 29.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 19.2 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	1,269.0	1,106.1
TTM Earnings per share	Rs	53.3	41.1
Diluted earnings per share	Rs	53.3	41.1
Price to Cash Flow	x	13.9	19.2
TTM P/E ratio	x	20.1	29.0
Price / Book Value ratio	x	3.9	5.0
Market Cap	Rs m	23,609	28,800
Dividends per share (Unadj.)	Rs	26.5	41.0

Ratio Analysis for GOODYEAR (I)

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.3x 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 31.2x during FY24, from 43.7x 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 16.3% during FY24, from 20.3% 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 22.7% during FY24, from 27.9% 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 5.3% during FY24, from 6.6% 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	1.3	1.3
Debtors’ Days	Days	401	383
Interest coverage	x	43.7	31.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.6	5.3
Return on equity	%	20.3	16.3
Return on capital employed	%	27.9	22.7

To see how GOODYEAR (I) has performed over the last 5 years, please visit here.

GOODYEAR (I) Share Price Performance

Over the last one year, GOODYEAR (I) share price has moved down from Rs 1,261.5 to Rs 1,193.0, registering a loss of Rs 68.6 or around 5.4%.

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

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