GANESHA ECOSPHERE 2023-24 Annual Report Analysis

Wed, 21 Aug

GANESHA ECOSPHERE 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.

GANESHA ECOSPHERE Income Statement Analysis

• Operating income during the year fell 4.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.3% in FY24 as against 10.8% in FY23.
• Depreciation charges increased by 67.0% and finance costs increased by 165.1% YoY, respectively.
• Other income grew by 9.3% YoY.
• Net profit for the year declined by 41.6% YoY.
• Net profit margins during the year declined from 5.9% in FY23 to 3.6% in FY24.

GANESHA ECOSPHERE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,796	11,229	-4.8%
Other income	Rs m	134	146	9.3%
Total Revenues	Rs m	11,930	11,376	-4.6%
Gross profit	Rs m	1,277	1,379	8.0%
Depreciation	Rs m	292	487	67.0%
Interest	Rs m	169	449	165.1%
Profit before tax	Rs m	950	589	-38.0%
Tax	Rs m	255	183	-28.1%
Profit after tax	Rs m	695	406	-41.6%
Gross profit margin	%	10.8	12.3
Effective tax rate	%	26.9	31.1
Net profit margin	%	5.9	3.6

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GANESHA ECOSPHERE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -52.9%.
• Long-term debt stood at Rs 4 billion as compared to Rs 3 billion during FY23, a growth of 19.1%.
• Current assets rose 38% and stood at Rs 7 billion, while fixed assets rose 13% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 16 billion as against Rs 13 billion during FY23, thereby witnessing a growth of 23%.

GANESHA ECOSPHERE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,381	10,145	59.0
Current Liabilities	Rs m	3,324	1,564	-52.9
Long-term Debt	Rs m	3,118	3,713	19.1
Total Liabilities	Rs m	13,230	16,245	22.8
Current assets	Rs m	5,262	7,264	38.0
Fixed Assets	Rs m	7,968	8,981	12.7
Total Assets	Rs m	13,230	16,245	22.8

GANESHA ECOSPHERE Cash Flow Statement Analysis

• GANESHA ECOSPHERE's cash flow from operating activities (CFO) during FY24 stood at Rs 435 million, an improvement of 114.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 36.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 74% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 391 million from the Rs -178 million net cash flows seen during FY23.

GANESHA ECOSPHERE 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	202	435	114.7%
Cash Flow from Investing Activities	Rs m	-1,664	-2,272	-
Cash Flow from Financing Activities	Rs m	1,283	2,228	73.7%
Net Cash Flow	Rs m	-178	391	-

Current Valuations for GANESHA ECOSPHERE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.0, an decline from the EPS of Rs 31.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,895.3, stands at 80.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 4.3 times.
• The company's price to cash flow (P/CF) ratio stood at 28.0 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	540.4	443.0
TTM Earnings per share	Rs	31.8	16.0
Diluted earnings per share	Rs	27.4	16.0
Price to Cash Flow	x	21.8	28.0
TTM P/E ratio	x	30.9	80.5
Price / Book Value ratio	x	2.6	2.5
Market Cap	Rs m	16,681	24,992
Dividends per share (Unadj.)	Rs	2.0	3.0

Ratio Analysis for GANESHA ECOSPHERE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.6x during FY24, from 1.6x 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 2.3x during FY24, from 6.6x 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 4.0% during FY24, from 10.9% 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 7.5% during FY24, from 11.8% 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 5.3% during FY24, from 6.5% 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	1.6	4.6
Debtors’ Days	Days	355	448
Interest coverage	x	6.6	2.3
Debt to equity ratio	x	0.5	0.4
Return on assets	%	6.5	5.3
Return on equity	%	10.9	4.0
Return on capital employed	%	11.8	7.5

To see how GANESHA ECOSPHERE has performed over the last 5 years, please visit here.

GANESHA ECOSPHERE Share Price Performance

Over the last one year, GANESHA ECOSPHERE share price has moved up from Rs 1,054.2 to Rs 1,895.3, registering a gain of Rs 841.1 or around 79.8%.

Overall, the S&P BSE SENSEX is up 23.8% over the year.

(To know more, check out historical annual results for GANESHA ECOSPHERE and quarterly results for GANESHA ECOSPHERE)