GRM OVERSEAS 2023-24 Annual Report Analysis

Wed, 9 Oct

GRM OVERSEAS 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.

GRM OVERSEAS Income Statement Analysis

• Operating income during the year fell 4.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 26.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.5% in FY24 as against 7.1% in FY23.
• Depreciation charges decreased by 3.1% and finance costs increased by 3.9% YoY, respectively.
• Other income grew by 155.0% YoY.
• Net profit for the year declined by 3.4% YoY.
• Net profit margins during the year grew from 4.6% in FY23 to 4.6% in FY24.

GRM OVERSEAS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,795	13,124	-4.9%
Other income	Rs m	128	325	155.0%
Total Revenues	Rs m	13,922	13,450	-3.4%
Gross profit	Rs m	983	722	-26.5%
Depreciation	Rs m	38	37	-3.1%
Interest	Rs m	198	206	3.9%
Profit before tax	Rs m	874	805	-7.9%
Tax	Rs m	245	197	-19.6%
Profit after tax	Rs m	629	607	-3.4%
Gross profit margin	%	7.1	5.5
Effective tax rate	%	28.1	24.5
Net profit margin	%	4.6	4.6

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

GRM OVERSEAS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -14.0%.
• Long-term debt down at Rs 1 million as compared to Rs 3 million during FY23, a fall of 56.5%.
• Current assets fell 1% and stood at Rs 7 billion, while fixed assets fell 10% and stood at Rs 458 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 8 billion during FY23, thereby witnessing a fall of 2%.

GRM OVERSEAS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,740	3,307	20.7
Current Liabilities	Rs m	5,056	4,346	-14.0
Long-term Debt	Rs m	3	1	-56.5
Total Liabilities	Rs m	7,840	7,703	-1.8
Current assets	Rs m	7,329	7,244	-1.2
Fixed Assets	Rs m	511	458	-10.3
Total Assets	Rs m	7,840	7,703	-1.8

GRM OVERSEAS Cash Flow Statement Analysis

• GRM OVERSEAS's cash flow from operating activities (CFO) during FY24 stood at Rs 471 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -43 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -394 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 34 million from the Rs -45 million net cash flows seen during FY23.

GRM OVERSEAS 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	-887	471	-
Cash Flow from Investing Activities	Rs m	-48	-43	-
Cash Flow from Financing Activities	Rs m	890	-394	-
Net Cash Flow	Rs m	-45	34	-

Current Valuations for GRM OVERSEAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.1, an decline from the EPS of Rs 10.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 242.3, stands at 23.7 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 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 16.1 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	229.9	218.7
TTM Earnings per share	Rs	10.5	10.1
Diluted earnings per share	Rs	10.5	10.1
Price to Cash Flow	x	16.5	16.1
TTM P/E ratio	x	17.5	23.7
Price / Book Value ratio	x	8.9	3.1
Market Cap	Rs m	24,410	10,365
Dividends per share (Unadj.)	Rs	0.5	0.0

Ratio Analysis for GRM OVERSEAS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x 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 4.9x during FY24, from 5.4x 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 18.4% during FY24, from 22.9% 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 30.5% during FY24, from 39.1% 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 improved and stood at 10.6% during FY24, from 10.5% 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	1.4	1.7
Debtors’ Days	Days	1,065	1,340
Interest coverage	x	5.4	4.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.5	10.6
Return on equity	%	22.9	18.4
Return on capital employed	%	39.1	30.5

To see how GRM OVERSEAS has performed over the last 5 years, please visit here.

GRM OVERSEAS Share Price Performance

Over the last one year, GRM OVERSEAS share price has moved up from Rs 188.3 to Rs 242.3, registering a gain of Rs 54.0 or around 28.7%.

Overall, the S&P BSE SENSEX is up 25.5% over the year.

(To know more, check out historical annual results for GRM OVERSEAS and quarterly results for GRM OVERSEAS)