GREENPLY INDUSTRIES 2023-24 Annual Report Analysis

Mon, 16 Sep

GREENPLY INDUSTRIES 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.

GREENPLY INDUSTRIES Income Statement Analysis

• Operating income during the year rose 31.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 39.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.1% in FY24 as against 8.6% in FY23.
• Depreciation charges increased by 109.9% and finance costs increased by 377.5% YoY, respectively.
• Other income declined by 20.8% YoY.
• Net profit for the year declined by 19.6% YoY.
• Net profit margins during the year declined from 6.4% in FY23 to 3.9% in FY24.

GREENPLY INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	16,631	21,799	31.1%
Other income	Rs m	175	139	-20.8%
Total Revenues	Rs m	16,806	21,938	30.5%
Gross profit	Rs m	1,428	1,990	39.4%
Depreciation	Rs m	260	545	109.9%
Interest	Rs m	91	433	377.5%
Profit before tax	Rs m	1,252	1,150	-8.1%
Tax	Rs m	192	298	55.1%
Profit after tax	Rs m	1,060	852	-19.6%
Gross profit margin	%	8.6	9.1
Effective tax rate	%	15.3	25.9
Net profit margin	%	6.4	3.9

Dear Reader: If You Invest in Midcap Stocks, this is for You

GREENPLY INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 9.9%.
• Long-term debt down at Rs 4 billion as compared to Rs 5 billion during FY23, a fall of 24.1%.
• Current assets rose 6% and stood at Rs 7 billion, while fixed assets fell 6% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 17 billion during FY23, thereby witnessing a fall of 1%.

GREENPLY INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,172	6,923	12.2
Current Liabilities	Rs m	4,902	5,385	9.9
Long-term Debt	Rs m	5,152	3,912	-24.1
Total Liabilities	Rs m	16,783	16,565	-1.3
Current assets	Rs m	6,529	6,916	5.9
Fixed Assets	Rs m	10,255	9,649	-5.9
Total Assets	Rs m	16,783	16,565	-1.3

GREENPLY INDUSTRIES Cash Flow Statement Analysis

• GREENPLY INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 78.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 471 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 139 million from the Rs -299 million net cash flows seen during FY23.

GREENPLY INDUSTRIES 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	622	1,109	78.4%
Cash Flow from Investing Activities	Rs m	-4,085	-1,427	-
Cash Flow from Financing Activities	Rs m	3,177	471	-85.2%
Net Cash Flow	Rs m	-299	139	-

Current Valuations for GREENPLY INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.9, an decline from the EPS of Rs 8.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 391.5, stands at 43.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 18.5 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	135.3	176.2
TTM Earnings per share	Rs	8.6	6.9
Diluted earnings per share	Rs	8.6	6.9
Price to Cash Flow	x	13.0	18.5
TTM P/E ratio	x	14.6	43.2
Price / Book Value ratio	x	3.6	3.7
Market Cap	Rs m	22,496	25,788
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for GREENPLY INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.3x 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 3.7x during FY24, from 14.8x 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 12.3% during FY24, from 17.2% 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 improved and stood at 14.6% during FY24, from 11.9% 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 improved and stood at 7.8% during FY24, from 6.9% 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	1.3	1.3
Debtors’ Days	Days	502	417
Interest coverage	x	14.8	3.7
Debt to equity ratio	x	0.8	0.6
Return on assets	%	6.9	7.8
Return on equity	%	17.2	12.3
Return on capital employed	%	11.9	14.6

To see how GREENPLY INDUSTRIES has performed over the last 5 years, please visit here.

GREENPLY INDUSTRIES Share Price Performance

Over the last one year, GREENPLY INDUSTRIES share price has moved up from Rs 161.0 to Rs 391.5, registering a gain of Rs 230.5 or around 143.1%.

Overall, the S&P BSE SENSEX is up 23.3% over the year.

(To know more, check out historical annual results for GREENPLY INDUSTRIES and quarterly results for GREENPLY INDUSTRIES)