G M POLYPLAST 2022-23 Annual Report Analysis

Thu, 19 Oct

G M POLYPLAST has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

G M POLYPLAST Income Statement Analysis

• Operating income during the year rose 11.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.6% in FY23 as against 8.2% in FY22.
• Depreciation charges increased by 26.9% and finance costs decreased by 32.8% YoY, respectively.
• Other income declined by 90.3% YoY.
• Net profit for the year grew by 17.3% YoY.
• Net profit margins during the year grew from 5.7% in FY22 to 6.0% in FY23.

G M POLYPLAST Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	739	823	11.4%
Other income	Rs m	9	1	-90.3%
Total Revenues	Rs m	747	823	10.2%
Gross profit	Rs m	60	79	31.3%
Depreciation	Rs m	10	12	26.9%
Interest	Rs m	5	3	-32.8%
Profit before tax	Rs m	55	65	18.0%
Tax	Rs m	13	16	20.2%
Profit after tax	Rs m	42	49	17.3%
Gross profit margin	%	8.2	9.6
Effective tax rate	%	23.6	24.0
Net profit margin	%	5.7	6.0

Dear Reader: If You Invest in Midcap Stocks, this is for You

G M POLYPLAST Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 112 million as compared to Rs 187 million in FY22, thereby witnessing an decrease of -40.3%.
• Long-term debt stood at Rs 3 million as compared to Rs 2 million during FY22, a growth of 87.8%.
• Current assets fell 7% and stood at Rs 296 million, while fixed assets fell 6% and stood at Rs 68 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 364 million as against Rs 390 million during FY22, thereby witnessing a fall of 7%.

G M POLYPLAST Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	204	253	24.1
Current Liabilities	Rs m	187	112	-40.3
Long-term Debt	Rs m	2	3	87.8
Total Liabilities	Rs m	390	364	-6.7
Current assets	Rs m	318	296	-6.9
Fixed Assets	Rs m	72	68	-5.5
Total Assets	Rs m	390	364	-6.7

G M POLYPLAST Cash Flow Statement Analysis

• G M POLYPLAST's cash flow from operating activities (CFO) during FY23 stood at Rs -5 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -7 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 8 million, an improvement of 145% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -4 million from the Rs -6 million net cash flows seen during FY22.

G M POLYPLAST Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	54	-5	-
Cash Flow from Investing Activities	Rs m	-43	-7	-
Cash Flow from Financing Activities	Rs m	-17	8	-
Net Cash Flow	Rs m	-6	-4	-

Current Valuations for G M POLYPLAST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.7, an decline from the EPS of Rs 21.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 172.4, stands at 47.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.2 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 126.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	384.7	61.1
TTM Earnings per share	Rs	21.8	3.7
Diluted earnings per share	Rs	3.1	3.7
Price to Cash Flow	x	48.0	126.1
TTM P/E ratio	x	59.1	47.1
Price / Book Value ratio	x	1.6	30.6
Market Cap	Rs m	321	7,744
Dividends per share (Unadj.)	Rs	1.0	0.0

Ratio Analysis for G M POLYPLAST

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY23, from 1.7x during FY22. 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 improved and stood at 21.9x during FY23, from 12.9x during FY22. 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 19.4% during FY23, from 20.5% during FY23. 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 26.4% during FY23, from 28.9% during FY22. 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 14.4% during FY23, from 11.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.7	2.6
Debtors’ Days	Days	84,476	68,363
Interest coverage	x	12.9	21.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.9	14.4
Return on equity	%	20.5	19.4
Return on capital employed	%	28.9	26.4

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

G M POLYPLAST Share Price Performance

Over the last one year, G M POLYPLAST share price has moved down from Rs 562.1 to Rs 172.4, registering a loss of Rs 389.8 or around 69.3%.

Overall, the S&P BSE SENSEX is up 12.6% over the year.

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