GMM PFAUDLER 2023-24 Annual Report Analysis

Wed, 17 Jul

GMM PFAUDLER 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.

GMM PFAUDLER Income Statement Analysis

• Operating income during the year rose 8.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.7% in FY24 as against 12.8% in FY23.
• Depreciation charges increased by 20.4% and finance costs increased by 42.4% YoY, respectively.
• Other income declined by 54.9% YoY.
• Net profit for the year declined by 17.2% YoY.
• Net profit margins during the year declined from 6.6% in FY23 to 5.1% in FY24.

GMM PFAUDLER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	31,776	34,465	8.5%
Other income	Rs m	517	233	-54.9%
Total Revenues	Rs m	32,292	34,698	7.4%
Gross profit	Rs m	4,077	4,735	16.1%
Depreciation	Rs m	1,218	1,467	20.4%
Interest	Rs m	666	948	42.4%
Profit before tax	Rs m	2,711	2,554	-5.8%
Tax	Rs m	607	813	33.9%
Profit after tax	Rs m	2,104	1,741	-17.2%
Gross profit margin	%	12.8	13.7
Effective tax rate	%	22.4	31.8
Net profit margin	%	6.6	5.1

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

GMM PFAUDLER Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 12 billion as compared to Rs 15 billion in FY23, thereby witnessing an decrease of -21.9%.
• Long-term debt down at Rs 5 billion as compared to Rs 6 billion during FY23, a fall of 21.8%.
• Current assets fell 14% and stood at Rs 19 billion, while fixed assets rose 2% and stood at Rs 13 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 32 billion as against Rs 35 billion during FY23, thereby witnessing a fall of 8%.

GMM PFAUDLER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,974	9,621	20.7
Current Liabilities	Rs m	15,237	11,900	-21.9
Long-term Debt	Rs m	6,409	5,014	-21.8
Total Liabilities	Rs m	34,884	32,039	-8.2
Current assets	Rs m	22,049	18,887	-14.3
Fixed Assets	Rs m	12,835	13,150	2.5
Total Assets	Rs m	34,884	32,039	-8.2

GMM PFAUDLER Cash Flow Statement Analysis

• GMM PFAUDLER's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 53.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -317 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 82 million from the Rs 35 million net cash flows seen during FY23.

GMM PFAUDLER 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	1,848	2,839	53.7%
Cash Flow from Investing Activities	Rs m	-3,111	-317	-
Cash Flow from Financing Activities	Rs m	1,299	-2,440	-
Net Cash Flow	Rs m	35	82	132.9%

Current Valuations for GMM PFAUDLER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.7, an decline from the EPS of Rs 46.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,449.8, stands at 35.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.8 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 21.7 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	706.8	766.6
TTM Earnings per share	Rs	46.8	38.7
Diluted earnings per share	Rs	46.8	38.7
Price to Cash Flow	x	19.8	21.7
TTM P/E ratio	x	31.3	35.4
Price / Book Value ratio	x	9.7	7.2
Market Cap	Rs m	77,338	69,635
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for GMM PFAUDLER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.4x 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 3.7x during FY24, from 5.1x 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 18.1% during FY24, from 26.4% 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 23.9% during FY24, from 23.5% 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 8.4% during FY24, from 7.9% 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	1.4	1.6
Debtors’ Days	Days	5	5
Interest coverage	x	5.1	3.7
Debt to equity ratio	x	0.8	0.5
Return on assets	%	7.9	8.4
Return on equity	%	26.4	18.1
Return on capital employed	%	23.5	23.9

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

GMM PFAUDLER Share Price Performance

Over the last one year, GMM PFAUDLER share price has moved down from Rs 1,488.4 to Rs 1,449.8, registering a loss of Rs 38.6 or around 2.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,460.1 (down 0.5%). Over the last one year it has moved up from 41,426.7 to 74,460.1, a gain of 33,033 points (up 79.7%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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