GILLANDERS ARBUTHNOT 2022-23 Annual Report Analysis

Fri, 2 Jun

GILLANDERS ARBUTHNOT has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

GILLANDERS ARBUTHNOT Income Statement Analysis

• Operating income during the year rose 3.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.6% in FY23 as against 7.3% in FY22.
• Depreciation charges decreased by 26.9% and finance costs decreased by 42.4% YoY, respectively.
• Other income declined by 31.9% YoY.
• Net profit for the year grew by 24.8% YoY.
• Net profit margins during the year grew from 4.0% in FY22 to 4.8% in FY23.

GILLANDERS ARBUTHNOT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,064	4,216	3.7%
Other income	Rs m	174	119	-31.9%
Total Revenues	Rs m	4,238	4,335	2.3%
Gross profit	Rs m	298	321	7.7%
Depreciation	Rs m	124	91	-26.9%
Interest	Rs m	233	134	-42.4%
Profit before tax	Rs m	115	214	86.7%
Tax	Rs m	-49	10	NA
Profit after tax	Rs m	163	204	24.8%
Gross profit margin	%	7.3	7.6
Effective tax rate	%	-42.4	4.8
Net profit margin	%	4.0	4.8

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GILLANDERS ARBUTHNOT Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -24.7%.
• Long-term debt down at Rs 125 million as compared to Rs 691 million during FY22, a fall of 81.9%.
• Current assets fell 24% and stood at Rs 2 billion, while fixed assets fell 16% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 6 billion during FY22, thereby witnessing a fall of 20%.

GILLANDERS ARBUTHNOT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,698	2,702	0.1
Current Liabilities	Rs m	2,495	1,878	-24.7
Long-term Debt	Rs m	691	125	-81.9
Total Liabilities	Rs m	6,073	4,882	-19.6
Current assets	Rs m	2,575	1,953	-24.2
Fixed Assets	Rs m	3,497	2,929	-16.2
Total Assets	Rs m	6,073	4,882	-19.6

GILLANDERS ARBUTHNOT Cash Flow Statement Analysis

• GILLANDERS ARBUTHNOT's cash flow from operating activities (CFO) during FY23 stood at Rs 498 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 98 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -579 million, an improvement of 15% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 17 million from the Rs -13 million net cash flows seen during FY22.

GILLANDERS ARBUTHNOT Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	686	498	-27.3%
Cash Flow from Investing Activities	Rs m	-18	98	-
Cash Flow from Financing Activities	Rs m	-681	-579	-
Net Cash Flow	Rs m	-13	17	-

Current Valuations for GILLANDERS ARBUTHNOT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.6, an improvement from the EPS of Rs 7.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 66.3, stands at 9.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 5.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	190.4	197.6
TTM Earnings per share	Rs	7.7	9.6
Diluted earnings per share	Rs	7.7	9.6
Price to Cash Flow	x	4.8	5.4
TTM P/E ratio	x	8.5	9.5
Price / Book Value ratio	x	0.4	0.6
Market Cap	Rs m	1,180	1,597
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GILLANDERS ARBUTHNOT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY23, from 1.0x during FY22. 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 2.6x during FY23, from 1.5x during FY22. 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 7.5% during FY23, from 6.1% during FY23. 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 12.3% during FY23, from 10.3% during FY22. 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 6.9% during FY23, from 6.5% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.0	1.0
Debtors’ Days	Days	356	220
Interest coverage	x	1.5	2.6
Debt to equity ratio	x	0.3	0.0
Return on assets	%	6.5	6.9
Return on equity	%	6.1	7.5
Return on capital employed	%	10.3	12.3

To see how GILLANDERS ARBUTHNOT has performed over the last 5 years, please visit here.

GILLANDERS ARBUTHNOT Share Price Performance

Over the last one year, GILLANDERS ARBUTHNOT share price has moved up from Rs 65.3 to Rs 66.3, registering a gain of Rs 1.0 or around 1.5%.

Overall, the S&P BSE SENSEX is up 12.3% over the year.

(To know more, check out historical annual results for GILLANDERS ARBUTHNOT and quarterly results for GILLANDERS ARBUTHNOT)