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GREAVES COTTON 2023-24 Annual Report Analysis

Tue, 16 Jul

GREAVES COTTON 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.

GREAVES COTTON Income Statement Analysis

• Operating income during the year fell 2.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 9.3% in FY24 as against 4.2% in FY23.
• Depreciation charges increased by 48.9% and finance costs decreased by 21.0% YoY, respectively.
• Other income declined by 1.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 2.6% in FY23 to 13.9% in FY24.

GREAVES COTTON Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	26,995	26,332	-2.5%
Other income	Rs m	672	663	-1.4%
Total Revenues	Rs m	27,667	26,995	-2.4%
Gross profit	Rs m	1,140	-2,457	NA
Depreciation	Rs m	567	844	48.9%
Interest	Rs m	117	92	-21.0%
Profit before tax	Rs m	1,128	-2,731	NA
Tax	Rs m	431	942	118.7%
Profit after tax	Rs m	698	-3,673	NA
Gross profit margin	%	4.2	-9.3
Effective tax rate	%	38.2	-34.5
Net profit margin	%	2.6	-13.9

For Investors: Our Big Prediction

GREAVES COTTON Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 7 billion as compared to Rs 7 billion in FY23, thereby witnessing an decrease of -3.2%.
• Long-term debt stood at Rs 3 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets fell 43% and stood at Rs 12 billion, while fixed assets rose 104% and stood at Rs 13 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 24 billion as against Rs 27 billion during FY23, thereby witnessing a fall of 10%.

GREAVES COTTON Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,728	14,190	-9.8
Current Liabilities	Rs m	7,130	6,900	-3.2
Long-term Debt	Rs m	0	3	0.0
Total Liabilities	Rs m	27,047	24,438	-9.6
Current assets	Rs m	20,766	11,865	-42.9
Fixed Assets	Rs m	6,150	12,574	104.5
Total Assets	Rs m	27,047	24,438	-9.6

GREAVES COTTON Cash Flow Statement Analysis

• GREAVES COTTON's cash flow from operating activities (CFO) during FY24 stood at Rs -2 billion, an improvement of 13.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -320 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 614 million from the Rs -43 million net cash flows seen during FY23.

GREAVES COTTON 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	-1,352	-1,530	-
Cash Flow from Investing Activities	Rs m	-7,577	2,324	-
Cash Flow from Financing Activities	Rs m	8,886	-320	-
Net Cash Flow	Rs m	-43	614	-

Current Valuations for GREAVES COTTON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -15.8, an decline from the EPS of Rs 3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 166.0, stands at -10.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at -12.2 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	116.5	113.5
TTM Earnings per share	Rs	3.0	-15.8
Diluted earnings per share	Rs	3.0	-15.8
Price to Cash Flow	x	23.2	-12.2
TTM P/E ratio	x	38.3	-10.5
Price / Book Value ratio	x	2.4	2.4
Market Cap	Rs m	38,158	34,394
Dividends per share (Unadj.)	Rs	0.9	2.0

Ratio Analysis for GREAVES COTTON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY24, from 2.9x 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 -28.6x during FY24, from 10.7x 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 -25.9% during FY24, from 4.4% 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 -18.6% during FY24, from 7.9% 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 -14.7% during FY24, from 3.0% 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	2.9	1.7
Debtors’ Days	Days	2	3
Interest coverage	x	10.7	-28.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.0	-14.7
Return on equity	%	4.4	-25.9
Return on capital employed	%	7.9	-18.6

To see how GREAVES COTTON has performed over the last 5 years, please visit here.

GREAVES COTTON Share Price Performance

Over the last one year, GREAVES COTTON share price has moved up from Rs 137.5 to Rs 166.0, registering a gain of Rs 28.5 or around 20.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,425.9 (down 0.6%). Over the last one year it has moved up from 41,347.4 to 74,425.9, a gain of 33,078 points (up 80.0%).

Overall, the S&P BSE SENSEX is up 23.4% over the year.

(To know more, check out historical annual results for GREAVES COTTON and quarterly results for GREAVES COTTON)