GMDC 2023-24 Annual Report Analysis

Mon, 9 Sep

GMDC 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.

GMDC Income Statement Analysis

• Operating income during the year fell 29.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 53.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.6% in FY24 as against 38.3% in FY23.
• Depreciation charges decreased by 3.2% and finance costs increased by 22.6% YoY, respectively.
• Other income declined by 31.3% YoY.
• Net profit for the year declined by 48.8% YoY.
• Net profit margins during the year declined from 34.4% in FY23 to 25.1% in FY24.

GMDC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	34,979	24,629	-29.6%
Other income	Rs m	3,936	2,702	-31.3%
Total Revenues	Rs m	38,914	27,331	-29.8%
Gross profit	Rs m	13,393	6,295	-53.0%
Depreciation	Rs m	813	787	-3.2%
Interest	Rs m	24	29	22.6%
Profit before tax	Rs m	16,491	8,180	-50.4%
Tax	Rs m	4,447	2,008	-54.9%
Profit after tax	Rs m	12,044	6,172	-48.8%
Gross profit margin	%	38.3	25.6
Effective tax rate	%	27.0	24.5
Net profit margin	%	34.4	25.1

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GMDC 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 4.4%.
• Current assets rose 28% and stood at Rs 26 billion, while fixed assets fell 3% and stood at Rs 48 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 74 billion as against Rs 70 billion during FY23, thereby witnessing a growth of 6%.

GMDC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	57,852	61,160	5.7
Current Liabilities	Rs m	5,273	5,507	4.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	69,512	73,669	6.0
Current assets	Rs m	20,327	26,068	28.2
Fixed Assets	Rs m	49,184	47,592	-3.2
Total Assets	Rs m	69,512	73,669	6.0

GMDC Cash Flow Statement Analysis

• GMDC's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion 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 -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -179 million from the Rs 84 million net cash flows seen during FY23.

GMDC 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	9,327	1,086	-88.4%
Cash Flow from Investing Activities	Rs m	-7,870	2,381	-
Cash Flow from Financing Activities	Rs m	-1,373	-3,645	-
Net Cash Flow	Rs m	84	-179	-

Current Valuations for GMDC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.4, an decline from the EPS of Rs 37.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 363.2, stands at 19.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 4.7 times.
• The company's price to cash flow (P/CF) ratio stood at 14.4 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	110.0	77.4
TTM Earnings per share	Rs	37.9	19.4
Diluted earnings per share	Rs	37.9	19.4
Price to Cash Flow	x	3.1	14.4
TTM P/E ratio	x	3.3	19.8
Price / Book Value ratio	x	1.0	1.6
Market Cap	Rs m	55,586	100,520
Dividends per share (Unadj.)	Rs	11.5	9.6

Ratio Analysis for GMDC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.7x during FY24, from 3.9x 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 280.8x during FY24, from 692.5x 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 declined and down at 10.1% during FY24, from 20.8% 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 13.4% during FY24, from 28.5% 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 declined and down at 8.4% during FY24, from 17.4% 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	3.9	4.7
Debtors’ Days	Days	193	150
Interest coverage	x	692.5	280.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.4	8.4
Return on equity	%	20.8	10.1
Return on capital employed	%	28.5	13.4

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

GMDC Share Price Performance

Over the last one year, GMDC share price has moved up from Rs 257.7 to Rs 363.2, registering a gain of Rs 105.5 or around 40.9%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

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