GRAVITA INDIA 2023-24 Annual Report Analysis

Tue, 27 Aug

GRAVITA INDIA 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.

GRAVITA INDIA Income Statement Analysis

• Operating income during the year rose 12.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.1% in FY24 as against 7.2% in FY23.
• Depreciation charges increased by 58.6% and finance costs increased by 19.0% YoY, respectively.
• Other income declined by 16.4% YoY.
• Net profit for the year grew by 18.7% YoY.
• Net profit margins during the year grew from 7.3% in FY23 to 7.7% in FY24.

GRAVITA INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	28,006	31,608	12.9%
Other income	Rs m	931	778	-16.4%
Total Revenues	Rs m	28,937	32,386	11.9%
Gross profit	Rs m	2,020	2,861	41.6%
Depreciation	Rs m	240	380	58.6%
Interest	Rs m	435	518	19.0%
Profit before tax	Rs m	2,276	2,742	20.5%
Tax	Rs m	235	319	35.6%
Profit after tax	Rs m	2,041	2,423	18.7%
Gross profit margin	%	7.2	9.1
Effective tax rate	%	10.3	11.6
Net profit margin	%	7.3	7.7

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

GRAVITA INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 8.1%.
• Long-term debt stood at Rs 2 billion as compared to Rs 904 million during FY23, a growth of 175.7%.
• Current assets rose 36% and stood at Rs 12 billion, while fixed assets rose 33% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 35%.

GRAVITA INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,889	8,374	42.2
Current Liabilities	Rs m	5,303	5,734	8.1
Long-term Debt	Rs m	904	2,492	175.7
Total Liabilities	Rs m	12,371	16,731	35.2
Current assets	Rs m	8,635	11,762	36.2
Fixed Assets	Rs m	3,736	4,969	33.0
Total Assets	Rs m	12,371	16,731	35.2

GRAVITA INDIA Cash Flow Statement Analysis

• GRAVITA INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 424 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 49.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 238% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 54 million from the Rs 70 million net cash flows seen during FY23.

GRAVITA INDIA 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	1,997	424	-78.8%
Cash Flow from Investing Activities	Rs m	-1,054	-1,578	-
Cash Flow from Financing Activities	Rs m	-874	1,209	-
Net Cash Flow	Rs m	70	54	-21.7%

Current Valuations for GRAVITA INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.1, an improvement from the EPS of Rs 29.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,042.8, stands at 54.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.8 times, while the price to sales ratio stands at 4.5 times.
• The company's price to cash flow (P/CF) ratio stood at 20.3 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	405.6	457.8
TTM Earnings per share	Rs	29.6	35.1
Diluted earnings per share	Rs	29.6	35.1
Price to Cash Flow	x	14.7	20.3
TTM P/E ratio	x	16.4	54.7
Price / Book Value ratio	x	4.5	6.8
Market Cap	Rs m	26,593	56,860
Dividends per share (Unadj.)	Rs	4.4	0.0

Ratio Analysis for GRAVITA INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x 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 improved and stood at 6.3x during FY24, from 6.2x 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 28.9% during FY24, from 34.7% 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 30.0% during FY24, from 39.9% 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 17.6% during FY24, from 20.0% 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	2.1
Debtors’ Days	Days	2	3
Interest coverage	x	6.2	6.3
Debt to equity ratio	x	0.2	0.3
Return on assets	%	20.0	17.6
Return on equity	%	34.7	28.9
Return on capital employed	%	39.9	30.0

To see how GRAVITA INDIA has performed over the last 5 years, please visit here.

GRAVITA INDIA Share Price Performance

Over the last one year, GRAVITA INDIA share price has moved up from Rs 741.7 to Rs 2,042.8, registering a gain of Rs 1,301.2 or around 175.4%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 32,803.1 (down 0.1%). Over the last one year it has moved up from 21,256.9 to 32,803.1, a gain of 11,546 points (up 54.3%).

Overall, the S&P BSE SENSEX is up 25.0% over the year.

(To know more, check out historical annual results for GRAVITA INDIA and quarterly results for GRAVITA INDIA)