GOCL CORPORATION 2023-24 Annual Report Analysis

Mon, 16 Sep

GOCL CORPORATION 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.

GOCL CORPORATION Income Statement Analysis

• Operating income during the year fell 22.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 1.8% in FY24 as against 3.4% in FY23.
• Depreciation charges increased by 19.5% and finance costs increased by 23.4% YoY, respectively.
• Other income declined by 51.8% YoY.
• Net profit for the year declined by 77.1% YoY.
• Net profit margins during the year declined from 22.9% in FY23 to 6.8% in FY24.

GOCL CORPORATION Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,208	7,136	-22.5%
Other income	Rs m	4,889	2,355	-51.8%
Total Revenues	Rs m	14,097	9,490	-32.7%
Gross profit	Rs m	-311	-126	NA
Depreciation	Rs m	105	125	19.5%
Interest	Rs m	1,186	1,463	23.4%
Profit before tax	Rs m	3,289	641	-80.5%
Tax	Rs m	1,177	158	-86.6%
Profit after tax	Rs m	2,112	483	-77.1%
Gross profit margin	%	-3.4	-1.8
Effective tax rate	%	35.8	24.7
Net profit margin	%	22.9	6.8

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GOCL CORPORATION Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 9 billion in FY23, thereby witnessing an decrease of -76.5%.
• Long-term debt down at Rs 11 billion as compared to Rs 11 billion during FY23, a fall of 4.3%.
• Current assets fell 29% and stood at Rs 14 billion, while fixed assets fell 10% and stood at Rs 13 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 29 billion as against Rs 35 billion during FY23, thereby witnessing a fall of 17%.

GOCL CORPORATION Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	14,095	14,190	0.7
Current Liabilities	Rs m	8,718	2,047	-76.5
Long-term Debt	Rs m	11,227	10,745	-4.3
Total Liabilities	Rs m	34,960	28,873	-17.4
Current assets	Rs m	20,224	14,444	-28.6
Fixed Assets	Rs m	14,736	13,244	-10.1
Total Assets	Rs m	34,960	28,873	-17.4

GOCL CORPORATION Cash Flow Statement Analysis

• GOCL CORPORATION's cash flow from operating activities (CFO) during FY24 stood at Rs 400 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 7 billion, an improvement of 325.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -8 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -259 million from the Rs 63 million net cash flows seen during FY23.

GOCL CORPORATION 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	-766	400	-
Cash Flow from Investing Activities	Rs m	1,727	7,345	325.2%
Cash Flow from Financing Activities	Rs m	-898	-8,004	-
Net Cash Flow	Rs m	63	-259	-

Current Valuations for GOCL CORPORATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.7, an decline from the EPS of Rs 42.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 445.4, stands at 30.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 38.0 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	185.8	144.0
TTM Earnings per share	Rs	42.6	9.7
Diluted earnings per share	Rs	42.6	9.7
Price to Cash Flow	x	6.6	38.0
TTM P/E ratio	x	6.9	30.5
Price / Book Value ratio	x	1.1	1.6
Market Cap	Rs m	15,764	23,102
Dividends per share (Unadj.)	Rs	10.0	4.0

Ratio Analysis for GOCL CORPORATION

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.1x during FY24, from 2.3x 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 1.4x during FY24, from 3.8x 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 3.4% during FY24, from 15.0% 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 8.4% during FY24, from 17.7% 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 6.7% during FY24, from 9.4% 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	2.3	7.1
Debtors’ Days	Days	354	401
Interest coverage	x	3.8	1.4
Debt to equity ratio	x	0.8	0.8
Return on assets	%	9.4	6.7
Return on equity	%	15.0	3.4
Return on capital employed	%	17.7	8.4

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

GOCL CORPORATION Share Price Performance

Over the last one year, GOCL CORPORATION share price has moved up from Rs 434.4 to Rs 445.4, registering a gain of Rs 11.0 or around 2.5%.

Overall, the S&P BSE SENSEX is up 23.3% over the year.

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