G.M. BREWERIES 2023-24 Annual Report Analysis

Mon, 22 Apr

G.M. BREWERIES 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.

G.M. BREWERIES Income Statement Analysis

• Operating income during the year was NA on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.7% YoY during the fiscal. Operating profit margins witnessed a growth and down at 9.1% in FY24 as against 10.2% in FY23.
• Depreciation charges increased by 5.5% and finance costs increased by 878.9% YoY, respectively.
• Other income grew by 280.3% YoY.
• Net profit for the year grew by 51.7% YoY.
• Net profit margins during the year declined from 8.8% in FY23 to 12.8% in FY24.

G.M. BREWERIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	-11,387	-11,848	NA
Other income	Rs m	211	803	280.3%
Total Revenues	Rs m	-11,176	-11,045	NA
Gross profit	Rs m	1,163	1,074	-7.7%
Depreciation	Rs m	58	61	5.5%
Interest	Rs m	0	4	878.9%
Profit before tax	Rs m	1,316	1,812	37.7%
Tax	Rs m	318	297	-6.5%
Profit after tax	Rs m	999	1,515	51.7%
Gross profit margin	%	-10.2	-9.1
Effective tax rate	%	24.1	16.4
Net profit margin	%	-8.8	-12.8

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G.M. BREWERIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 932 million as compared to Rs 849 million in FY23, thereby witnessing an increase of 9.8%.
• Current assets rose 12% and stood at Rs 1 billion, while fixed assets rose 20% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 19%.

G.M. BREWERIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,818	8,223	20.6
Current Liabilities	Rs m	849	932	9.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,692	9,174	19.3
Current assets	Rs m	1,078	1,211	12.3
Fixed Assets	Rs m	6,613	7,963	20.4
Total Assets	Rs m	7,692	9,174	19.3

G.M. BREWERIES Cash Flow Statement Analysis

• G.M. BREWERIES's cash flow from operating activities (CFO) during FY24 stood at Rs 593 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -485 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -113 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -6 million from the Rs 1 million net cash flows seen during FY23.

G.M. BREWERIES 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	960	593	-38.3%
Cash Flow from Investing Activities	Rs m	-868	-485	-
Cash Flow from Financing Activities	Rs m	-92	-113	-
Net Cash Flow	Rs m	1	-6	-

Current Valuations for G.M. BREWERIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 82.9, an improvement from the EPS of Rs 54.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 765.0, stands at 9.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at -1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 7.8 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	-622.9	-648.2
TTM Earnings per share	Rs	54.6	82.9
Diluted earnings per share	Rs	54.6	82.9
Price to Cash Flow	x	9.2	7.8
TTM P/E ratio	x	9.8	9.2
Price / Book Value ratio	x	1.7	1.5
Market Cap	Rs m	11,548	12,319
Dividends per share (Unadj.)	Rs	6.0	7.0

Ratio Analysis for G.M. BREWERIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.3x 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 488.1x during FY24, from 3,464.6x 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 improved and stood at 18.4% during FY24, from 14.6% 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 22.1% during FY24, from 19.3% 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 improved and stood at 16.6% during FY24, from 13.0% 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	1.3	1.3
Debtors’ Days	Days	-1	-6
Interest coverage	x	3,464.6	488.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.0	16.6
Return on equity	%	14.6	18.4
Return on capital employed	%	19.3	22.1

To see how G.M. BREWERIES has performed over the last 5 years, please visit here.

G.M. BREWERIES Share Price Performance

Over the last one year, G.M. BREWERIES share price has moved up from Rs 583.3 to Rs 765.0, registering a gain of Rs 181.8 or around 31.2%.

Overall, the S&P BSE SENSEX is up 23.3% over the year.

(To know more, check out historical annual results for G.M. BREWERIES and quarterly results for G.M. BREWERIES)