GNA AXLES 2023-24 Annual Report Analysis

Thu, 12 Sep

GNA AXLES 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.

GNA AXLES Income Statement Analysis

• Operating income during the year fell 4.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 15.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.1% in FY24 as against 14.7% in FY23.
• Depreciation charges increased by 9.9% and finance costs increased by 5.3% YoY, respectively.
• Other income grew by 68.6% YoY.
• Net profit for the year declined by 23.2% YoY.
• Net profit margins during the year declined from 8.2% in FY23 to 6.6% in FY24.

GNA AXLES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	15,829	15,063	-4.8%
Other income	Rs m	14	24	68.6%
Total Revenues	Rs m	15,844	15,087	-4.8%
Gross profit	Rs m	2,327	1,973	-15.2%
Depreciation	Rs m	485	533	9.9%
Interest	Rs m	110	115	5.3%
Profit before tax	Rs m	1,746	1,348	-22.8%
Tax	Rs m	444	348	-21.6%
Profit after tax	Rs m	1,302	1,000	-23.2%
Gross profit margin	%	14.7	13.1
Effective tax rate	%	25.4	25.8
Net profit margin	%	8.2	6.6

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GNA AXLES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -8.9%.
• Long-term debt down at Rs 291 million as compared to Rs 301 million during FY23, a fall of 3.1%.
• Current assets rose 2% and stood at Rs 8 billion, while fixed assets rose 9% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 4%.

GNA AXLES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,145	8,015	12.2
Current Liabilities	Rs m	4,259	3,879	-8.9
Long-term Debt	Rs m	301	291	-3.1
Total Liabilities	Rs m	11,682	12,154	4.0
Current assets	Rs m	8,199	8,374	2.1
Fixed Assets	Rs m	3,483	3,780	8.5
Total Assets	Rs m	11,682	12,154	4.0

GNA AXLES Cash Flow Statement Analysis

• GNA AXLES's cash flow from operating activities (CFO) during FY24 stood at Rs 984 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -856 million, an improvement of 28.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -129 million, an improvement of 67% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 million from the Rs 1 million net cash flows seen during FY23.

GNA AXLES 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	1,054	984	-6.7%
Cash Flow from Investing Activities	Rs m	-665	-856	-
Cash Flow from Financing Activities	Rs m	-389	-129	-
Net Cash Flow	Rs m	1	-1	-

Current Valuations for GNA AXLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.3, an decline from the EPS of Rs 60.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 431.7, stands at 19.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 13.3 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	737.3	350.9
TTM Earnings per share	Rs	60.6	23.3
Diluted earnings per share	Rs	30.3	23.3
Price to Cash Flow	x	9.5	13.3
TTM P/E ratio	x	13.0	19.6
Price / Book Value ratio	x	1.1	2.5
Market Cap	Rs m	7,748	20,340
Dividends per share (Unadj.)	Rs	6.0	2.0

Ratio Analysis for GNA AXLES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY24, from 1.9x 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 12.7x during FY24, from 16.9x 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 12.5% during FY24, from 18.2% 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 17.6% during FY24, from 24.9% 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 9.2% during FY24, from 12.1% 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	1.9	2.2
Debtors’ Days	Days	1,293	1,384
Interest coverage	x	16.9	12.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.1	9.2
Return on equity	%	18.2	12.5
Return on capital employed	%	24.9	17.6

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

GNA AXLES Share Price Performance

Over the last one year, GNA AXLES share price has moved down from Rs 512.6 to Rs 431.7, registering a loss of Rs 80.9 or around 15.8%.

Overall, the S&P BSE SENSEX is up 21.6% over the year.

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