GANDHI SPECIAL TUBES 2023-24 Annual Report Analysis

Wed, 24 Jul

GANDHI SPECIAL TUBES 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.

GANDHI SPECIAL TUBES Income Statement Analysis

• Operating income during the year rose 2.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 37.5% in FY24 as against 36.2% in FY23.
• Depreciation charges decreased by 1.9% and finance costs decreased by 22.8% YoY, respectively.
• Other income grew by 127.4% YoY.
• Net profit for the year grew by 17.4% YoY.
• Net profit margins during the year grew from 28.3% in FY23 to 32.5% in FY24.

GANDHI SPECIAL TUBES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,675	1,709	2.0%
Other income	Rs m	54	124	127.4%
Total Revenues	Rs m	1,729	1,833	6.0%
Gross profit	Rs m	607	641	5.7%
Depreciation	Rs m	31	31	-1.9%
Interest	Rs m	1	1	-22.8%
Profit before tax	Rs m	629	733	16.7%
Tax	Rs m	155	178	14.4%
Profit after tax	Rs m	473	556	17.4%
Gross profit margin	%	36.2	37.5
Effective tax rate	%	24.7	24.2
Net profit margin	%	28.3	32.5

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

GANDHI SPECIAL TUBES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 104 million as compared to Rs 113 million in FY23, thereby witnessing an decrease of -7.8%.
• Current assets fell 26% and stood at Rs 707 million, while fixed assets rose 61% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 20%.

GANDHI SPECIAL TUBES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,821	2,228	22.3
Current Liabilities	Rs m	113	104	-7.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,023	2,427	19.9
Current assets	Rs m	955	707	-26.0
Fixed Assets	Rs m	1,069	1,720	60.9
Total Assets	Rs m	2,023	2,427	19.9

GANDHI SPECIAL TUBES Cash Flow Statement Analysis

• GANDHI SPECIAL TUBES's cash flow from operating activities (CFO) during FY24 stood at Rs 264 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -367 million, an improvement of 392.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -147 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -250 million from the Rs 256 million net cash flows seen during FY23.

GANDHI SPECIAL TUBES 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	454	264	-41.9%
Cash Flow from Investing Activities	Rs m	-75	-367	-
Cash Flow from Financing Activities	Rs m	-123	-147	-
Net Cash Flow	Rs m	256	-250	-

Current Valuations for GANDHI SPECIAL TUBES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 45.7, an improvement from the EPS of Rs 39.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 810.0, stands at 17.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 5.8 times.
• The company's price to cash flow (P/CF) ratio stood at 14.7 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	137.8	140.6
TTM Earnings per share	Rs	39.0	45.7
Diluted earnings per share	Rs	39.0	45.7
Price to Cash Flow	x	11.8	14.7
TTM P/E ratio	x	12.6	17.7
Price / Book Value ratio	x	3.2	3.9
Market Cap	Rs m	5,786	8,624
Dividends per share (Unadj.)	Rs	12.0	13.0

Ratio Analysis for GANDHI SPECIAL TUBES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.8x during FY24, from 8.5x 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 improved and stood at 773.0x during FY24, from 512.1x 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 24.9% during FY24, from 26.0% 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 33.0% during FY24, from 34.6% 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 22.9% during FY24, from 23.5% 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	8.5	6.8
Debtors’ Days	Days	390	418
Interest coverage	x	512.1	773.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	23.5	22.9
Return on equity	%	26.0	24.9
Return on capital employed	%	34.6	33.0

To see how GANDHI SPECIAL TUBES has performed over the last 5 years, please visit here.

GANDHI SPECIAL TUBES Share Price Performance

Over the last one year, GANDHI SPECIAL TUBES share price has moved up from Rs 609.4 to Rs 810.0, registering a gain of Rs 200.6 or around 32.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 31,823.7 (up 0.9%). Over the last one year it has moved up from 21,065.4 to 31,823.7, a gain of 10,758 points (up 51.1%).

Overall, the S&P BSE SENSEX is up 20.9% over the year.

(To know more, check out historical annual results for GANDHI SPECIAL TUBES and quarterly results for GANDHI SPECIAL TUBES)