GALLANTT METAL 2023-24 Annual Report Analysis

Thu, 26 Sep

GALLANTT METAL 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.

GALLANTT METAL Income Statement Analysis

• Operating income during the year rose 4.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.6% in FY24 as against 9.0% in FY23.
• Depreciation charges increased by 15.2% and finance costs increased by 3.6% YoY, respectively.
• Other income grew by 109.3% YoY.
• Net profit for the year grew by 59.9% YoY.
• Net profit margins during the year grew from 3.5% in FY23 to 5.3% in FY24.

GALLANTT METAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	40,567	42,271	4.2%
Other income	Rs m	33	69	109.3%
Total Revenues	Rs m	40,600	42,340	4.3%
Gross profit	Rs m	3,641	4,482	23.1%
Depreciation	Rs m	1,003	1,155	15.2%
Interest	Rs m	272	282	3.6%
Profit before tax	Rs m	2,399	3,113	29.8%
Tax	Rs m	990	860	-13.1%
Profit after tax	Rs m	1,409	2,253	59.9%
Gross profit margin	%	9.0	10.6
Effective tax rate	%	41.3	27.6
Net profit margin	%	3.5	5.3

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GALLANTT METAL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -13.4%.
• Long-term debt stood at Rs 1 billion as compared to Rs 995 million during FY23, a growth of 0.8%.
• Current assets rose 9% and stood at Rs 11 billion, while fixed assets rose 5% and stood at Rs 20 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 31 billion as against Rs 29 billion during FY23, thereby witnessing a growth of 6%.

GALLANTT METAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	22,250	24,507	10.1
Current Liabilities	Rs m	5,378	4,657	-13.4
Long-term Debt	Rs m	995	1,003	0.8
Total Liabilities	Rs m	29,488	31,355	6.3
Current assets	Rs m	9,939	10,868	9.4
Fixed Assets	Rs m	19,550	20,487	4.8
Total Assets	Rs m	29,488	31,355	6.3

GALLANTT METAL Cash Flow Statement Analysis

• GALLANTT METAL's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 260.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 10.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -53 million from the Rs -30 million net cash flows seen during FY23.

GALLANTT METAL 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	956	3,443	260.3%
Cash Flow from Investing Activities	Rs m	-2,251	-2,481	-
Cash Flow from Financing Activities	Rs m	1,265	-1,016	-
Net Cash Flow	Rs m	-30	-53	-

Current Valuations for GALLANTT METAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.3, an improvement from the EPS of Rs 5.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 377.0, stands at 28.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 10.0 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	168.1	175.2
TTM Earnings per share	Rs	5.8	9.3
Diluted earnings per share	Rs	5.8	9.3
Price to Cash Flow	x	5.6	10.0
TTM P/E ratio	x	9.6	28.7
Price / Book Value ratio	x	0.8	1.4
Market Cap	Rs m	16,841	34,021
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GALLANTT METAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY24, from 1.8x 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 12.0x during FY24, from 9.8x 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 9.2% during FY24, from 6.3% 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 13.3% during FY24, from 11.5% 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 8.1% during FY24, from 5.7% 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	1.8	2.3
Debtors’ Days	Days	124	94
Interest coverage	x	9.8	12.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.7	8.1
Return on equity	%	6.3	9.2
Return on capital employed	%	11.5	13.3

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

GALLANTT METAL Share Price Performance

Over the last one year, GALLANTT METAL share price has moved up from Rs 93.0 to Rs 377.0, registering a gain of Rs 284.1 or around 305.6%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 33,595.5 (up 1.2%). Over the last one year it has moved up from 22,801.3 to 33,595.5, a gain of 10,794 points (up 47.3%).

Overall, the S&P BSE SENSEX is up 29.4% over the year.

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