GFL 2023-24 Annual Report Analysis

Thu, 29 Aug

GFL 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.

GFL Income Statement Analysis

• Operating income during the year fell 0.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 99.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 58.7% in FY24 as against 74313.3% in FY23.
• Depreciation charges decreased by 80.0% and finance costs decreased by 100.0% YoY, respectively.
• Other income declined by 10.3% YoY.
• Net profit for the year declined by 99.9% YoY.
• Net profit margins during the year declined from 70058.4% in FY23 to 48.4% in FY24.

GFL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	32	32	-0.9%
Other income	Rs m	2	2	-10.3%
Total Revenues	Rs m	35	34	-1.6%
Gross profit	Rs m	23,959	19	-99.9%
Depreciation	Rs m	0	0	-80.0%
Interest	Rs m	0	0	-100.0%
Profit before tax	Rs m	23,961	21	-99.9%
Tax	Rs m	1,374	5	-99.6%
Profit after tax	Rs m	22,587	15	-99.9%
Gross profit margin	%	74,313.3	58.7
Effective tax rate	%	5.7	26.0
Net profit margin	%	70,058.4	48.4

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

GFL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 8 million as compared to Rs 16 million in FY23, thereby witnessing an decrease of -47.1%.
• Current assets fell 18% and stood at Rs 156 million, while fixed assets rose 3% and stood at Rs 28 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 28 billion as against Rs 27 billion during FY23, thereby witnessing a growth of 2%.

GFL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	26,018	26,380	1.4
Current Liabilities	Rs m	16	8	-47.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	27,411	27,825	1.5
Current assets	Rs m	190	156	-17.9
Fixed Assets	Rs m	26,902	27,670	2.9
Total Assets	Rs m	27,411	27,825	1.5

GFL Cash Flow Statement Analysis

• GFL's cash flow from operating activities (CFO) during FY24 stood at Rs 6 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 0 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 million from the Rs -232 million net cash flows seen during FY23.

GFL 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	4,022	6	-99.9%
Cash Flow from Investing Activities	Rs m	-2,186	-4	-
Cash Flow from Financing Activities	Rs m	-1,844	0	-
Net Cash Flow	Rs m	-232	2	-

Current Valuations for GFL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an decline from the EPS of Rs 205.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 79.5, stands at 183.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 273.4 times.
• The company's price to cash flow (P/CF) ratio stood at 585.9 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	0.3	0.3
TTM Earnings per share	Rs	205.6	0.1
Diluted earnings per share	Rs	205.6	0.1
Price to Cash Flow	x	0.2	585.9
TTM P/E ratio	x	0.2	183.5
Price / Book Value ratio	x	0.3	0.3
Market Cap	Rs m	7,330	9,076
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GFL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 18.7x during FY24, from 12.0x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 0.1% during FY24, from 86.8% 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 0.1% during FY24, from 92.1% 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 0.1% during FY24, from 82.4% 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	12.0	18.7
Debtors’ Days	Days	276	244
Interest coverage	x	2,396,082.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	82.4	0.1
Return on equity	%	86.8	0.1
Return on capital employed	%	92.1	0.1

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

GFL Share Price Performance

Over the last one year, GFL share price has moved down from Rs 84.7 to Rs 0.0, registering a loss of Rs 84.7 or around 100.0%.

Overall, the NIFTY 50 is down 0.1% over the year.

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