GLOBUS SPIRITS 2023-24 Annual Report Analysis

Tue, 6 Aug

GLOBUS SPIRITS 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.

GLOBUS SPIRITS Income Statement Analysis

• Operating income during the year rose 20.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 31.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.1% in FY24 as against 17.6% in FY23.
• Depreciation charges increased by 16.5% and finance costs increased by 56.3% YoY, respectively.
• Other income grew by 72.8% YoY.
• Net profit for the year declined by 21.4% YoY.
• Net profit margins during the year declined from 8.8% in FY23 to 5.7% in FY24.

GLOBUS SPIRITS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,957	16,821	20.5%
Other income	Rs m	78	135	72.8%
Total Revenues	Rs m	14,035	16,957	20.8%
Gross profit	Rs m	2,456	1,694	-31.0%
Depreciation	Rs m	563	656	16.5%
Interest	Rs m	170	266	56.3%
Profit before tax	Rs m	1,801	907	-49.6%
Tax	Rs m	579	-53	NA
Profit after tax	Rs m	1,222	960	-21.4%
Gross profit margin	%	17.6	10.1
Effective tax rate	%	32.1	-5.9
Net profit margin	%	8.8	5.7

Don't Miss: Key Information for Long-term Investors

GLOBUS SPIRITS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 28.5%.
• Long-term debt down at Rs 920 million as compared to Rs 1 billion during FY23, a fall of 17.3%.
• Current assets rose 23% and stood at Rs 7 billion, while fixed assets rose 5% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 18 billion as against Rs 16 billion during FY23, thereby witnessing a growth of 11%.

GLOBUS SPIRITS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,858	9,683	9.3
Current Liabilities	Rs m	4,906	6,306	28.5
Long-term Debt	Rs m	1,112	920	-17.3
Total Liabilities	Rs m	16,168	17,964	11.1
Current assets	Rs m	5,343	6,588	23.3
Fixed Assets	Rs m	10,825	11,376	5.1
Total Assets	Rs m	16,168	17,964	11.1

GLOBUS SPIRITS Cash Flow Statement Analysis

• GLOBUS SPIRITS's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 66.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -68 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -11 million from the Rs -237 million net cash flows seen during FY23.

GLOBUS SPIRITS 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	1,020	1,702	66.9%
Cash Flow from Investing Activities	Rs m	-1,967	-1,644	-
Cash Flow from Financing Activities	Rs m	710	-68	-
Net Cash Flow	Rs m	-237	-11	-

Current Valuations for GLOBUS SPIRITS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.3, an decline from the EPS of Rs 42.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 931.8, stands at 27.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 17.7 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	484.6	583.7
TTM Earnings per share	Rs	42.4	33.3
Diluted earnings per share	Rs	42.3	33.2
Price to Cash Flow	x	12.6	17.7
TTM P/E ratio	x	18.4	27.9
Price / Book Value ratio	x	3.8	3.0
Market Cap	Rs m	33,699	28,568
Dividends per share (Unadj.)	Rs	6.0	3.5

Ratio Analysis for GLOBUS SPIRITS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.1x 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 4.4x during FY24, from 11.6x 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 9.9% during FY24, from 13.8% 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 11.1% during FY24, from 19.8% 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 6.8% during FY24, from 8.6% 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	1.1	1.0
Debtors’ Days	Days	548	599
Interest coverage	x	11.6	4.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.6	6.8
Return on equity	%	13.8	9.9
Return on capital employed	%	19.8	11.1

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

GLOBUS SPIRITS Share Price Performance

Over the last one year, GLOBUS SPIRITS share price has moved down from Rs 971.7 to Rs 931.8, registering a loss of Rs 39.9 or around 4.1%.

Overall, the S&P BSE SENSEX is up 21.1% over the year.

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