GEEKAY WIRES 2023-24 Annual Report Analysis

Wed, 16 Oct

GEEKAY WIRES 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.

GEEKAY WIRES Income Statement Analysis

• Operating income during the year rose 3.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 53.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.8% in FY24 as against 5.9% in FY23.
• Depreciation charges increased by 32.4% and finance costs decreased by 18.9% YoY, respectively.
• Other income grew by 34.6% YoY.
• Net profit for the year grew by 57.7% YoY.
• Net profit margins during the year grew from 6.1% in FY23 to 9.4% in FY24.

GEEKAY WIRES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,993	4,116	3.1%
Other income	Rs m	216	291	34.6%
Total Revenues	Rs m	4,210	4,407	4.7%
Gross profit	Rs m	238	364	53.3%
Depreciation	Rs m	41	54	32.4%
Interest	Rs m	66	53	-18.9%
Profit before tax	Rs m	347	548	57.8%
Tax	Rs m	103	163	57.8%
Profit after tax	Rs m	244	385	57.7%
Gross profit margin	%	5.9	8.8
Effective tax rate	%	29.7	29.7
Net profit margin	%	6.1	9.4

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

GEEKAY WIRES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 964 million in FY23, thereby witnessing an increase of 4.6%.
• Long-term debt down at Rs 161 million as compared to Rs 443 million during FY23, a fall of 63.8%.
• Current assets fell 3% and stood at Rs 1 billion, while fixed assets rose 25% and stood at Rs 849 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 6%.

GEEKAY WIRES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	736	1,093	48.5
Current Liabilities	Rs m	964	1,008	4.6
Long-term Debt	Rs m	443	161	-63.8
Total Liabilities	Rs m	2,192	2,323	6.0
Current assets	Rs m	1,513	1,474	-2.6
Fixed Assets	Rs m	679	849	25.0
Total Assets	Rs m	2,192	2,323	6.0

GEEKAY WIRES Cash Flow Statement Analysis

• GEEKAY WIRES 's cash flow from operating activities (CFO) during FY24 stood at Rs 615 million, an improvement of 17.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -214 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -415 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 8 million from the Rs -25 million net cash flows seen during FY23.

GEEKAY WIRES 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	525	615	17.2%
Cash Flow from Investing Activities	Rs m	-215	-214	-
Cash Flow from Financing Activities	Rs m	-342	-415	-
Net Cash Flow	Rs m	-25	8	-

Current Valuations for GEEKAY WIRES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.4, an decline from the EPS of Rs 23.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 109.0, stands at 14.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 11.9 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	382.1	78.8
TTM Earnings per share	Rs	23.4	7.4
Diluted earnings per share	Rs	4.7	7.4
Price to Cash Flow	x	0.0	11.9
TTM P/E ratio	x	0.0	14.8
Price / Book Value ratio	x	1.7	4.8
Market Cap	Rs m	1,270	5,236
Dividends per share (Unadj.)	Rs	0.5	0.6

Ratio Analysis for GEEKAY WIRES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 1.6x 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 11.2x during FY24, from 6.3x 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 35.2% during FY24, from 33.2% 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 48.0% during FY24, from 35.0% 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 18.9% during FY24, from 14.2% 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	1.6	1.5
Debtors’ Days	Days	683	561
Interest coverage	x	6.3	11.2
Debt to equity ratio	x	0.6	0.1
Return on assets	%	14.2	18.9
Return on equity	%	33.2	35.2
Return on capital employed	%	35.0	48.0

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

GEEKAY WIRES Share Price Performance

Over the last one year, GEEKAY WIRES 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 down 0.4% over the year.

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