GREENLAM IND. 2023-24 Annual Report Analysis

Thu, 11 Jul

GREENLAM IND. 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.

GREENLAM IND. Income Statement Analysis

• Operating income during the year rose 13.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.8% in FY24 as against 11.5% in FY23.
• Depreciation charges increased by 37.7% and finance costs increased by 88.6% YoY, respectively.
• Other income grew by 20.6% YoY.
• Net profit for the year grew by 7.4% YoY.
• Net profit margins during the year declined from 6.3% in FY23 to 6.0% in FY24.

GREENLAM IND. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,260	23,063	13.8%
Other income	Rs m	180	217	20.6%
Total Revenues	Rs m	20,439	23,280	13.9%
Gross profit	Rs m	2,329	2,947	26.5%
Depreciation	Rs m	633	871	37.7%
Interest	Rs m	235	443	88.6%
Profit before tax	Rs m	1,641	1,849	12.7%
Tax	Rs m	356	469	31.8%
Profit after tax	Rs m	1,285	1,380	7.4%
Gross profit margin	%	11.5	12.8
Effective tax rate	%	21.7	25.4
Net profit margin	%	6.3	6.0

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

GREENLAM IND. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 9 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 35.4%.
• Long-term debt stood at Rs 6 billion as compared to Rs 4 billion during FY23, a growth of 83.7%.
• Current assets rose 7% and stood at Rs 11 billion, while fixed assets rose 60% and stood at Rs 16 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 27 billion as against Rs 20 billion during FY23, thereby witnessing a growth of 34%.

GREENLAM IND. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,581	10,772	12.4
Current Liabilities	Rs m	6,616	8,957	35.4
Long-term Debt	Rs m	3,524	6,472	83.7
Total Liabilities	Rs m	20,351	27,259	33.9
Current assets	Rs m	10,094	10,835	7.3
Fixed Assets	Rs m	10,257	16,424	60.1
Total Assets	Rs m	20,351	27,259	33.9

GREENLAM IND. Cash Flow Statement Analysis

• GREENLAM IND.'s cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 14.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 169 million from the Rs 2 million net cash flows seen during FY23.

GREENLAM IND. 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	1,693	1,936	14.4%
Cash Flow from Investing Activities	Rs m	-5,352	-5,267	-
Cash Flow from Financing Activities	Rs m	3,661	3,500	-4.4%
Net Cash Flow	Rs m	2	169	8,005.8%

Current Valuations for GREENLAM IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.8, an improvement from the EPS of Rs 10.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 575.7, stands at 53.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.8 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 25.8 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	159.5	180.8
TTM Earnings per share	Rs	10.1	10.8
Diluted earnings per share	Rs	10.1	10.8
Price to Cash Flow	x	19.9	25.8
TTM P/E ratio	x	29.7	53.3
Price / Book Value ratio	x	4.6	5.4
Market Cap	Rs m	44,187	58,065
Dividends per share (Unadj.)	Rs	1.5	1.7

Ratio Analysis for GREENLAM IND.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.5x 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 deteriorated and stood at 5.2x during FY24, from 8.0x 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 12.8% during FY24, from 13.4% 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 13.3% during FY24, from 14.3% 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 6.7% during FY24, from 7.5% 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	1.5	1.2
Debtors’ Days	Days	257	240
Interest coverage	x	8.0	5.2
Debt to equity ratio	x	0.4	0.6
Return on assets	%	7.5	6.7
Return on equity	%	13.4	12.8
Return on capital employed	%	14.3	13.3

To see how GREENLAM IND. has performed over the last 5 years, please visit here.

GREENLAM IND. Share Price Performance

Over the last one year, GREENLAM IND. share price has moved up from Rs 463.2 to Rs 575.7, registering a gain of Rs 112.5 or around 24.3%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for GREENLAM IND. and quarterly results for GREENLAM IND.)