GRANULES INDIA 2023-24 Annual Report Analysis

Wed, 17 Jul

GRANULES 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.

GRANULES INDIA Income Statement Analysis

• Operating income during the year fell 0.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.0% in FY24 as against 20.2% in FY23.
• Depreciation charges increased by 12.4% and finance costs increased by 89.2% YoY, respectively.
• Other income declined by 69.2% YoY.
• Net profit for the year declined by 21.5% YoY.
• Net profit margins during the year declined from 11.4% in FY23 to 9.0% in FY24.

GRANULES INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	45,119	45,064	-0.1%
Other income	Rs m	143	44	-69.2%
Total Revenues	Rs m	45,262	45,108	-0.3%
Gross profit	Rs m	9,133	8,560	-6.3%
Depreciation	Rs m	1,845	2,073	12.4%
Interest	Rs m	559	1,058	89.2%
Profit before tax	Rs m	6,872	5,472	-20.4%
Tax	Rs m	1,706	1,419	-16.8%
Profit after tax	Rs m	5,166	4,053	-21.5%
Gross profit margin	%	20.2	19.0
Effective tax rate	%	24.8	25.9
Net profit margin	%	11.4	9.0

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GRANULES INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 21 billion as compared to Rs 18 billion in FY23, thereby witnessing an increase of 14.8%.
• Long-term debt down at Rs 690 million as compared to Rs 1 billion during FY23, a fall of 53.6%.
• Current assets rose 13% and stood at Rs 29 billion, while fixed assets rose 11% and stood at Rs 26 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 55 billion as against Rs 49 billion during FY23, thereby witnessing a growth of 12%.

GRANULES INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	28,169	32,072	13.9
Current Liabilities	Rs m	18,135	20,823	14.8
Long-term Debt	Rs m	1,486	690	-53.6
Total Liabilities	Rs m	49,031	54,839	11.8
Current assets	Rs m	25,741	29,050	12.9
Fixed Assets	Rs m	23,290	25,788	10.7
Total Assets	Rs m	49,031	54,839	11.8

GRANULES INDIA Cash Flow Statement Analysis

• GRANULES INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 88.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 77 million, an improvement of 102% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 895 million from the Rs 1 billion net cash flows seen during FY23.

GRANULES 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	7,387	4,394	-40.5%
Cash Flow from Investing Activities	Rs m	-1,914	-3,602	-
Cash Flow from Financing Activities	Rs m	-4,403	77	-
Net Cash Flow	Rs m	1,068	895	-16.2%

Current Valuations for GRANULES INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.7, an decline from the EPS of Rs 21.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 520.8, stands at 31.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 14.9 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	186.4	185.9
TTM Earnings per share	Rs	21.3	16.7
Diluted earnings per share	Rs	21.3	16.7
Price to Cash Flow	x	10.1	14.9
TTM P/E ratio	x	13.6	31.1
Price / Book Value ratio	x	2.6	2.8
Market Cap	Rs m	73,611	91,191
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for GRANULES INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 1.4x 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 6.2x during FY24, from 13.3x 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 12.6% during FY24, from 18.3% 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 19.9% during FY24, from 25.1% 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 9.3% during FY24, from 11.7% 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	1.4	1.4
Debtors’ Days	Days	77	80
Interest coverage	x	13.3	6.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	11.7	9.3
Return on equity	%	18.3	12.6
Return on capital employed	%	25.1	19.9

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

GRANULES INDIA Share Price Performance

Over the last one year, GRANULES INDIA share price has moved up from Rs 311.4 to Rs 520.8, registering a gain of Rs 209.4 or around 67.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 38,755.3 (down 0.1%). Over the last one year it has moved up from 26,443.1 to 38,755.3, a gain of 12,312 points (up 46.6%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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