GUJARAT NARMADA 2023-24 Annual Report Analysis

Mon, 2 Sep

GUJARAT NARMADA 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.

GUJARAT NARMADA Income Statement Analysis

• Operating income during the year fell 22.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 71.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.0% in FY24 as against 18.9% in FY23.
• Depreciation charges increased by 1.5% and finance costs increased by 138.0% YoY, respectively.
• Other income grew by 34.2% YoY.
• Net profit for the year declined by 66.9% YoY.
• Net profit margins during the year declined from 14.3% in FY23 to 6.1% in FY24.

GUJARAT NARMADA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	102,269	79,297	-22.5%
Other income	Rs m	3,077	4,130	34.2%
Total Revenues	Rs m	105,346	83,428	-20.8%
Gross profit	Rs m	19,321	5,581	-71.1%
Depreciation	Rs m	3,029	3,075	1.5%
Interest	Rs m	53	125	138.0%
Profit before tax	Rs m	19,316	6,511	-66.3%
Tax	Rs m	4,676	1,663	-64.4%
Profit after tax	Rs m	14,640	4,848	-66.9%
Gross profit margin	%	18.9	7.0
Effective tax rate	%	24.2	25.5
Net profit margin	%	14.3	6.1

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GUJARAT NARMADA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 11 billion as compared to Rs 13 billion in FY23, thereby witnessing an decrease of -16.3%.
• Current assets fell 8% and stood at Rs 45 billion, while fixed assets fell 9% and stood at Rs 62 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 107 billion as against Rs 117 billion during FY23, thereby witnessing a fall of 9%.

GUJARAT NARMADA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	91,051	83,088	-8.7
Current Liabilities	Rs m	12,919	10,815	-16.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	116,955	106,719	-8.8
Current assets	Rs m	48,707	44,818	-8.0
Fixed Assets	Rs m	68,248	61,901	-9.3
Total Assets	Rs m	116,955	106,719	-8.8

GUJARAT NARMADA Cash Flow Statement Analysis

• GUJARAT NARMADA's cash flow from operating activities (CFO) during FY24 stood at Rs 313 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 12 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -13 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -142 million from the Rs -165 million net cash flows seen during FY23.

GUJARAT NARMADA 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	13,731	313	-97.7%
Cash Flow from Investing Activities	Rs m	-12,294	12,355	-
Cash Flow from Financing Activities	Rs m	-1,601	-12,810	-
Net Cash Flow	Rs m	-165	-142	-

Current Valuations for GUJARAT NARMADA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.0, an decline from the EPS of Rs 94.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 693.2, stands at 19.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 12.3 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	658.0	539.7
TTM Earnings per share	Rs	94.2	33.0
Diluted earnings per share	Rs	99.6	33.0
Price to Cash Flow	x	4.2	12.3
TTM P/E ratio	x	5.1	19.8
Price / Book Value ratio	x	1.2	1.2
Market Cap	Rs m	108,517	97,378
Dividends per share (Unadj.)	Rs	30.0	16.5

Ratio Analysis for GUJARAT NARMADA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.1x during FY24, from 3.8x 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 53.0x during FY24, from 368.2x 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 5.8% during FY24, from 16.1% 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 8.0% during FY24, from 21.3% 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 declined and down at 4.7% during FY24, from 12.6% 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	3.8	4.1
Debtors’ Days	Days	1	3
Interest coverage	x	368.2	53.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.6	4.7
Return on equity	%	16.1	5.8
Return on capital employed	%	21.3	8.0

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

GUJARAT NARMADA Share Price Performance

Over the last one year, GUJARAT NARMADA share price has moved up from Rs 622.9 to Rs 693.2, registering a gain of Rs 70.3 or around 11.3%.

Overall, the S&P BSE SENSEX is up 26.9% over the year.

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