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GUJARAT STATE FERTILIZERS 2023-24 Annual Report Analysis

Tue, 3 Sep

GUJARAT STATE FERTILIZERS 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.

GUJARAT STATE FERTILIZERS Income Statement Analysis

• Operating income during the year fell 19.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 67.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.7% in FY24 as against 14.0% in FY23.
• Depreciation charges increased by 0.8% and finance costs decreased by 25.5% YoY, respectively.
• Other income grew by 153.2% YoY.
• Net profit for the year declined by 55.5% YoY.
• Net profit margins during the year declined from 11.1% in FY23 to 6.2% in FY24.

GUJARAT STATE FERTILIZERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	113,687	91,546	-19.5%
Other income	Rs m	1,488	3,769	153.2%
Total Revenues	Rs m	115,175	95,315	-17.2%
Gross profit	Rs m	15,909	5,216	-67.2%
Depreciation	Rs m	1,820	1,835	0.8%
Interest	Rs m	150	112	-25.5%
Profit before tax	Rs m	15,427	7,038	-54.4%
Tax	Rs m	2,768	1,400	-49.4%
Profit after tax	Rs m	12,659	5,638	-55.5%
Gross profit margin	%	14.0	5.7
Effective tax rate	%	17.9	19.9
Net profit margin	%	11.1	6.2

For Investors: Our Big Prediction

GUJARAT STATE FERTILIZERS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 13 billion as compared to Rs 11 billion in FY23, thereby witnessing an increase of 20.6%.
• Current assets rose 6% and stood at Rs 57 billion, while fixed assets rose 10% and stood at Rs 93 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 151 billion as against Rs 139 billion during FY23, thereby witnessing a growth of 8%.

GUJARAT STATE FERTILIZERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	120,399	127,270	5.7
Current Liabilities	Rs m	10,808	13,036	20.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	139,092	150,507	8.2
Current assets	Rs m	53,732	57,011	6.1
Fixed Assets	Rs m	85,361	93,496	9.5
Total Assets	Rs m	139,092	150,507	8.2

GUJARAT STATE FERTILIZERS Cash Flow Statement Analysis

• GUJARAT STATE FERTILIZERS's cash flow from operating activities (CFO) during FY24 stood at Rs -3 billion 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 -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -6 billion from the Rs 8 billion net cash flows seen during FY23.

GUJARAT STATE FERTILIZERS 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	9,239	-2,681	-
Cash Flow from Investing Activities	Rs m	-394	1,056	-
Cash Flow from Financing Activities	Rs m	-1,141	-4,031	-
Net Cash Flow	Rs m	7,704	-5,656	-

Current Valuations for GUJARAT STATE FERTILIZERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.1, an decline from the EPS of Rs 31.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 239.5, stands at 18.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 11.8 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	285.3	229.7
TTM Earnings per share	Rs	31.8	14.1
Diluted earnings per share	Rs	31.8	14.1
Price to Cash Flow	x	3.3	11.8
TTM P/E ratio	x	3.8	18.0
Price / Book Value ratio	x	0.5	0.7
Market Cap	Rs m	62,431	88,024
Dividends per share (Unadj.)	Rs	10.0	4.0

Ratio Analysis for GUJARAT STATE FERTILIZERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.4x during FY24, from 5.0x 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 63.9x during FY24, from 103.7x 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 4.4% during FY24, from 10.5% 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 5.6% during FY24, from 12.9% 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 3.8% during FY24, from 9.2% 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	5.0	4.4
Debtors’ Days	Days	160	203
Interest coverage	x	103.7	63.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.2	3.8
Return on equity	%	10.5	4.4
Return on capital employed	%	12.9	5.6

To see how GUJARAT STATE FERTILIZERS has performed over the last 5 years, please visit here.

GUJARAT STATE FERTILIZERS Share Price Performance

Over the last one year, GUJARAT STATE FERTILIZERS share price has moved up from Rs 177.5 to Rs 239.5, registering a gain of Rs 62.0 or around 34.9%.

Overall, the S&P BSE SENSEX is up 26.8% over the year.

(To know more, check out historical annual results for GUJARAT STATE FERTILIZERS and quarterly results for GUJARAT STATE FERTILIZERS)