GKW. 2023-24 Annual Report Analysis

Mon, 12 Aug

GKW. 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.

GKW. Income Statement Analysis

• Operating income during the year rose 90.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 46.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 51.3% in FY24 as against 66.7% in FY23.
• Depreciation charges increased by 13.8% and finance costs decreased by 36.4% YoY, respectively.
• Other income declined by 8.5% YoY.
• Net profit for the year grew by 57.9% YoY.
• Net profit margins during the year declined from 43.2% in FY23 to 35.7% in FY24.

GKW. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	203	388	90.7%
Other income	Rs m	4	3	-8.5%
Total Revenues	Rs m	207	391	89.0%
Gross profit	Rs m	136	199	46.7%
Depreciation	Rs m	10	11	13.8%
Interest	Rs m	0	0	-36.4%
Profit before tax	Rs m	129	191	47.8%
Tax	Rs m	41	52	26.3%
Profit after tax	Rs m	88	139	57.9%
Gross profit margin	%	66.7	51.3
Effective tax rate	%	32.1	27.4
Net profit margin	%	43.2	35.7

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GKW. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 309 million as compared to Rs 290 million in FY23, thereby witnessing an increase of 6.6%.
• Current assets rose 11% and stood at Rs 2 billion, while fixed assets rose 5% and stood at Rs 28 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 30 billion as against Rs 28 billion during FY23, thereby witnessing a growth of 6%.

GKW. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	22,068	23,570	6.8
Current Liabilities	Rs m	290	309	6.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	28,245	29,818	5.6
Current assets	Rs m	1,388	1,546	11.4
Fixed Assets	Rs m	26,858	28,271	5.3
Total Assets	Rs m	28,245	29,818	5.6

GKW. Cash Flow Statement Analysis

• GKW.'s cash flow from operating activities (CFO) during FY24 stood at Rs 138 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -56 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 0 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 82 million from the Rs -11 million net cash flows seen during FY23.

GKW. 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	-19	138	-
Cash Flow from Investing Activities	Rs m	9	-56	-
Cash Flow from Financing Activities	Rs m	0	0	-
Net Cash Flow	Rs m	-11	82	-

Current Valuations for GKW.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.2, an improvement from the EPS of Rs 14.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,316.0, stands at 142.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 51.1 times.
• The company's price to cash flow (P/CF) ratio stood at 50.0 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	34.0	64.9
TTM Earnings per share	Rs	14.7	23.2
Diluted earnings per share	Rs	14.7	23.2
Price to Cash Flow	x	0.0	50.0
TTM P/E ratio	x	0.0	142.8
Price / Book Value ratio	x	0.2	0.3
Market Cap	Rs m	3,625	7,490
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GKW.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.0x during FY24, from 4.8x 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 2,727.6x during FY24, from 1,175.5x 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 0.6% during FY24, from 0.4% 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 0.8% during FY24, from 0.6% 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 0.5% during FY24, from 0.3% 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	4.8	5.0
Debtors’ Days	Days	0	1
Interest coverage	x	1,175.5	2,727.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.3	0.5
Return on equity	%	0.4	0.6
Return on capital employed	%	0.6	0.8

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

GKW. Share Price Performance

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

Overall, the NIFTY 50 is up 0.2% over the year.

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