GRP. 2023-24 Annual Report Analysis

Wed, 17 Jul

GRP. 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.

GRP. Income Statement Analysis

• Operating income during the year rose 1.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 108.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.2% in FY24 as against 5.0% in FY23.
• Depreciation charges decreased by 0.3% and finance costs increased by 12.1% YoY, respectively.
• Other income declined by 53.7% YoY.
• Net profit for the year grew by 62.3% YoY.
• Net profit margins during the year grew from 3.3% in FY23 to 5.3% in FY24.

GRP. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,222	4,284	1.5%
Other income	Rs m	134	62	-53.7%
Total Revenues	Rs m	4,355	4,345	-0.2%
Gross profit	Rs m	209	438	108.9%
Depreciation	Rs m	125	125	-0.3%
Interest	Rs m	65	73	12.1%
Profit before tax	Rs m	153	302	97.2%
Tax	Rs m	14	75	455.9%
Profit after tax	Rs m	139	226	62.3%
Gross profit margin	%	5.0	10.2
Effective tax rate	%	8.9	25.0
Net profit margin	%	3.3	5.3

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GRP. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 38.5%.
• Long-term debt down at Rs 219 million as compared to Rs 249 million during FY23, a fall of 12.1%.
• Current assets rose 9% and stood at Rs 2 billion, while fixed assets rose 35% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 20%.

GRP. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,474	1,667	13.1
Current Liabilities	Rs m	1,038	1,437	38.5
Long-term Debt	Rs m	249	219	-12.1
Total Liabilities	Rs m	2,901	3,486	20.1
Current assets	Rs m	1,654	1,797	8.7
Fixed Assets	Rs m	1,248	1,689	35.3
Total Assets	Rs m	2,901	3,486	20.1

GRP. Cash Flow Statement Analysis

• GRP.'s cash flow from operating activities (CFO) during FY24 stood at Rs 270 million, an improvement of 7.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -421 million, an improvement of 672.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 147 million, an improvement of 176% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -4 million from the Rs 3 million net cash flows seen during FY23.

GRP. 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	251	270	7.5%
Cash Flow from Investing Activities	Rs m	-55	-421	-
Cash Flow from Financing Activities	Rs m	-194	147	-
Net Cash Flow	Rs m	3	-4	-

Current Valuations for GRP.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 170.2, an improvement from the EPS of Rs 104.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 13,636.9, stands at 80.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.9 times, while the price to sales ratio stands at 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 18.0 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	3,174.2	3,220.7
TTM Earnings per share	Rs	104.9	170.2
Diluted earnings per share	Rs	104.6	169.8
Price to Cash Flow	x	13.0	18.0
TTM P/E ratio	x	24.6	80.3
Price / Book Value ratio	x	2.1	3.8
Market Cap	Rs m	3,071	6,316
Dividends per share (Unadj.)	Rs	17.0	37.5

Ratio Analysis for GRP.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x 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 5.1x during FY24, from 3.4x 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 13.6% during FY24, from 9.5% 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 19.9% during FY24, from 12.6% 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 improved and stood at 8.6% during FY24, from 7.0% 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	1.3
Debtors’ Days	Days	611	903
Interest coverage	x	3.4	5.1
Debt to equity ratio	x	0.2	0.1
Return on assets	%	7.0	8.6
Return on equity	%	9.5	13.6
Return on capital employed	%	12.6	19.9

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

GRP. Share Price Performance

Over the last one year, GRP. share price has moved up from Rs 3,650.0 to Rs 13,636.9, registering a gain of Rs 9,986.9 or around 273.6%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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