GLOBAL SURFACES 2023-24 Annual Report Analysis

Wed, 11 Sep

GLOBAL SURFACES 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.

GLOBAL SURFACES Income Statement Analysis

• Operating income during the year rose 26.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.5% in FY24 as against 19.9% in FY23.
• Depreciation charges decreased by 5.3% and finance costs increased by 26.2% YoY, respectively.
• Other income grew by 33.9% YoY.
• Net profit for the year declined by 18.4% YoY.
• Net profit margins during the year declined from 13.6% in FY23 to 8.8% in FY24.

GLOBAL SURFACES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,781	2,253	26.5%
Other income	Rs m	28	37	33.9%
Total Revenues	Rs m	1,808	2,290	26.6%
Gross profit	Rs m	355	350	-1.5%
Depreciation	Rs m	94	89	-5.3%
Interest	Rs m	36	45	26.2%
Profit before tax	Rs m	253	253	-0.2%
Tax	Rs m	11	55	417.6%
Profit after tax	Rs m	242	198	-18.4%
Gross profit margin	%	19.9	15.5
Effective tax rate	%	4.2	21.7
Net profit margin	%	13.6	8.8

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GLOBAL SURFACES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 902 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -33.4%.
• Long-term debt stood at Rs 525 million as compared to Rs 193 million during FY23, a growth of 171.3%.
• Current assets fell 7% and stood at Rs 2 billion, while fixed assets rose 34% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 14%.

GLOBAL SURFACES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,613	2,806	7.4
Current Liabilities	Rs m	1,355	902	-33.4
Long-term Debt	Rs m	193	525	171.3
Total Liabilities	Rs m	4,404	5,004	13.6
Current assets	Rs m	2,156	2,002	-7.1
Fixed Assets	Rs m	2,248	3,003	33.6
Total Assets	Rs m	4,404	5,004	13.6

GLOBAL SURFACES Cash Flow Statement Analysis

• GLOBAL SURFACES's cash flow from operating activities (CFO) during FY24 stood at Rs -373 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 90 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 243 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -39 million from the Rs 45 million net cash flows seen during FY23.

GLOBAL SURFACES 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	270	-373	-
Cash Flow from Investing Activities	Rs m	-2,053	90	-
Cash Flow from Financing Activities	Rs m	1,827	243	-86.7%
Net Cash Flow	Rs m	45	-39	-

Current Valuations for GLOBAL SURFACES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.7, an decline from the EPS of Rs 5.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 227.0, stands at 58.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 4.3 times.
• The company's price to cash flow (P/CF) ratio stood at 36.6 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	42.0	53.2
TTM Earnings per share	Rs	5.7	4.7
Diluted earnings per share	Rs	5.7	4.7
Price to Cash Flow	x	20.7	36.6
TTM P/E ratio	x	28.8	58.9
Price / Book Value ratio	x	2.6	3.7
Market Cap	Rs m	6,755	10,496
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GLOBAL SURFACES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x 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 deteriorated and stood at 6.6x during FY24, from 8.1x 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 7.0% during FY24, from 9.3% 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 declined and down at 8.9% during FY24, from 10.3% 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 4.9% during FY24, from 6.3% 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	1.6	2.2
Debtors’ Days	Days	90	178
Interest coverage	x	8.1	6.6
Debt to equity ratio	x	0.1	0.2
Return on assets	%	6.3	4.9
Return on equity	%	9.3	7.0
Return on capital employed	%	10.3	8.9

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

GLOBAL SURFACES Share Price Performance

Over the last one year, GLOBAL SURFACES share price has moved up from Rs 180.2 to Rs 227.0, registering a gain of Rs 46.8 or around 25.9%.

Overall, the S&P BSE SENSEX is up 21.4% over the year.

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