GUJARAT AMBUJA 2023-24 Annual Report Analysis

Mon, 12 Aug

GUJARAT AMBUJA 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.

GUJARAT AMBUJA Income Statement Analysis

• Operating income during the year rose 0.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.0% in FY24 as against 9.7% in FY23.
• Depreciation charges increased by 28.0% and finance costs increased by 38.6% YoY, respectively.
• Other income grew by 95.5% YoY.
• Net profit for the year grew by 4.8% YoY.
• Net profit margins during the year grew from 6.7% in FY23 to 7.0% in FY24.

GUJARAT AMBUJA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	49,090	49,267	0.4%
Other income	Rs m	740	1,447	95.5%
Total Revenues	Rs m	49,830	50,714	1.8%
Gross profit	Rs m	4,750	4,424	-6.9%
Depreciation	Rs m	947	1,211	28.0%
Interest	Rs m	133	184	38.6%
Profit before tax	Rs m	4,411	4,476	1.5%
Tax	Rs m	1,110	1,017	-8.4%
Profit after tax	Rs m	3,301	3,459	4.8%
Gross profit margin	%	9.7	9.0
Effective tax rate	%	25.2	22.7
Net profit margin	%	6.7	7.0

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GUJARAT AMBUJA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -0.1%.
• Long-term debt down at Rs 19 million as compared to Rs 31 million during FY23, a fall of 37.2%.
• Current assets rose 10% and stood at Rs 19 billion, while fixed assets rose 15% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 33 billion as against Rs 30 billion during FY23, thereby witnessing a growth of 12%.

GUJARAT AMBUJA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	24,340	27,690	13.8
Current Liabilities	Rs m	4,399	4,393	-0.1
Long-term Debt	Rs m	31	19	-37.2
Total Liabilities	Rs m	29,516	33,098	12.1
Current assets	Rs m	17,079	18,816	10.2
Fixed Assets	Rs m	12,397	14,247	14.9
Total Assets	Rs m	29,516	33,098	12.1

GUJARAT AMBUJA Cash Flow Statement Analysis

• GUJARAT AMBUJA's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 249.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -545 million, an improvement of 28% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -946 million from the Rs 934 million net cash flows seen during FY23.

GUJARAT AMBUJA 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	2,415	2,132	-11.7%
Cash Flow from Investing Activities	Rs m	-724	-2,532	-
Cash Flow from Financing Activities	Rs m	-757	-545	-
Net Cash Flow	Rs m	934	-946	-

Current Valuations for GUJARAT AMBUJA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.5, an decline from the EPS of Rs 14.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 129.7, stands at 16.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 16.0 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	214.0	107.4
TTM Earnings per share	Rs	14.4	7.5
Diluted earnings per share	Rs	7.2	7.5
Price to Cash Flow	x	12.5	16.0
TTM P/E ratio	x	16.1	16.9
Price / Book Value ratio	x	2.9	2.7
Market Cap	Rs m	69,878	74,757
Dividends per share (Unadj.)	Rs	0.7	0.4

Ratio Analysis for GUJARAT AMBUJA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.3x during FY24, from 3.9x 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 25.4x during FY24, from 34.3x 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 declined and down at 12.5% during FY24, from 13.6% 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 16.8% during FY24, from 18.6% 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 11.0% during FY24, from 11.6% 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	3.9	4.3
Debtors’ Days	Days	2	2
Interest coverage	x	34.3	25.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.6	11.0
Return on equity	%	13.6	12.5
Return on capital employed	%	18.6	16.8

To see how GUJARAT AMBUJA has performed over the last 5 years, please visit here.

GUJARAT AMBUJA Share Price Performance

Over the last one year, GUJARAT AMBUJA share price has moved up from Rs 121.5 to Rs 129.7, registering a gain of Rs 8.1 or around 6.7%.

Overall, the S&P BSE SENSEX is up 21.4% over the year.

(To know more, check out historical annual results for GUJARAT AMBUJA and quarterly results for GUJARAT AMBUJA)