GARWARE TECHNICAL 2023-24 Annual Report Analysis

Wed, 28 Aug

GARWARE TECHNICAL 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.

GARWARE TECHNICAL Income Statement Analysis

• Operating income during the year rose 1.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.0% in FY24 as against 16.6% in FY23.
• Depreciation charges increased by 16.0% and finance costs increased by 44.0% YoY, respectively.
• Other income grew by 23.4% YoY.
• Net profit for the year grew by 20.9% YoY.
• Net profit margins during the year grew from 13.2% in FY23 to 15.7% in FY24.

GARWARE TECHNICAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,055	13,256	1.5%
Other income	Rs m	403	498	23.4%
Total Revenues	Rs m	13,459	13,754	2.2%
Gross profit	Rs m	2,171	2,650	22.1%
Depreciation	Rs m	223	259	16.0%
Interest	Rs m	120	172	44.0%
Profit before tax	Rs m	2,232	2,717	21.7%
Tax	Rs m	510	635	24.6%
Profit after tax	Rs m	1,722	2,082	20.9%
Gross profit margin	%	16.6	20.0
Effective tax rate	%	22.8	23.4
Net profit margin	%	13.2	15.7

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GARWARE TECHNICAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 12.1%.
• Current assets rose 52% and stood at Rs 9 billion, while fixed assets fell 4% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 18 billion as against Rs 15 billion during FY23, thereby witnessing a growth of 19%.

GARWARE TECHNICAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	10,164	12,339	21.4
Current Liabilities	Rs m	4,309	4,831	12.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	14,932	17,710	18.6
Current assets	Rs m	6,098	9,265	51.9
Fixed Assets	Rs m	8,834	8,445	-4.4
Total Assets	Rs m	14,932	17,710	18.6

GARWARE TECHNICAL Cash Flow Statement Analysis

• GARWARE TECHNICAL's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 15.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -727 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -385 million, an improvement of 55% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs 26 million net cash flows seen during FY23.

GARWARE TECHNICAL 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	1,894	2,188	15.5%
Cash Flow from Investing Activities	Rs m	-1,017	-727	-
Cash Flow from Financing Activities	Rs m	-851	-385	-
Net Cash Flow	Rs m	26	1,076	4,104.1%

Current Valuations for GARWARE TECHNICAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 102.1, an improvement from the EPS of Rs 84.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,913.8, stands at 36.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 28.9 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	640.6	650.4
TTM Earnings per share	Rs	84.5	102.1
Diluted earnings per share	Rs	86.7	104.9
Price to Cash Flow	x	29.7	28.9
TTM P/E ratio	x	33.5	36.7
Price / Book Value ratio	x	6.4	5.5
Market Cap	Rs m	64,594	67,661
Dividends per share (Unadj.)	Rs	3.5	3.0

Ratio Analysis for GARWARE TECHNICAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x 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 16.8x during FY24, from 19.7x 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 16.9% during FY24, from 16.9% 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 improved and stood at 23.4% during FY24, from 23.1% 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 12.7% during FY24, from 12.3% 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	1.9
Debtors’ Days	Days	654	722
Interest coverage	x	19.7	16.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.3	12.7
Return on equity	%	16.9	16.9
Return on capital employed	%	23.1	23.4

To see how GARWARE TECHNICAL has performed over the last 5 years, please visit here.

GARWARE TECHNICAL Share Price Performance

Over the last one year, GARWARE TECHNICAL share price has moved up from Rs 3,191.1 to Rs 3,913.8, registering a gain of Rs 722.7 or around 22.6%.

Overall, the S&P BSE SENSEX is up 26.0% over the year.

(To know more, check out historical annual results for GARWARE TECHNICAL and quarterly results for GARWARE TECHNICAL)