GUJARAT GAS 2023-24 Annual Report Analysis

Tue, 10 Sep

GUJARAT GAS 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 GAS Income Statement Analysis

• Operating income during the year fell 6.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 19.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.0% in FY24 as against 14.9% in FY23.
• Depreciation charges increased by 10.8% and finance costs decreased by 19.8% YoY, respectively.
• Other income grew by 4.7% YoY.
• Net profit for the year declined by 25.2% YoY.
• Net profit margins during the year declined from 9.4% in FY23 to 7.6% in FY24.

GUJARAT GAS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	162,126	150,874	-6.9%
Other income	Rs m	1,013	1,061	4.7%
Total Revenues	Rs m	163,140	151,935	-6.9%
Gross profit	Rs m	24,213	19,589	-19.1%
Depreciation	Rs m	4,283	4,743	10.8%
Interest	Rs m	668	535	-19.8%
Profit before tax	Rs m	20,276	15,371	-24.2%
Tax	Rs m	4,992	3,934	-21.2%
Profit after tax	Rs m	15,284	11,437	-25.2%
Gross profit margin	%	14.9	13.0
Effective tax rate	%	24.6	25.6
Net profit margin	%	9.4	7.6

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GUJARAT GAS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 28 billion as compared to Rs 28 billion in FY23, thereby witnessing an increase of 0.4%.
• Current assets rose 13% and stood at Rs 22 billion, while fixed assets rose 6% and stood at Rs 95 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 117 billion as against Rs 109 billion during FY23, thereby witnessing a growth of 7%.

GUJARAT GAS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	70,280	77,225	9.9
Current Liabilities	Rs m	28,034	28,149	0.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	109,274	116,916	7.0
Current assets	Rs m	19,792	22,288	12.6
Fixed Assets	Rs m	89,482	94,628	5.7
Total Assets	Rs m	109,274	116,916	7.0

GUJARAT GAS Cash Flow Statement Analysis

• GUJARAT GAS's cash flow from operating activities (CFO) during FY24 stood at Rs 16 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -9 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion, an improvement of 24% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 7 billion net cash flows seen during FY23.

GUJARAT GAS 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	23,755	16,340	-31.2%
Cash Flow from Investing Activities	Rs m	-10,391	-8,787	-
Cash Flow from Financing Activities	Rs m	-6,784	-5,141	-
Net Cash Flow	Rs m	6,581	2,413	-63.3%

Current Valuations for GUJARAT GAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.6, an decline from the EPS of Rs 22.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 654.6, stands at 35.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.8 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 21.7 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	235.5	219.2
TTM Earnings per share	Rs	22.2	16.6
Diluted earnings per share	Rs	22.2	16.6
Price to Cash Flow	x	16.2	21.7
TTM P/E ratio	x	20.7	35.9
Price / Book Value ratio	x	4.8	4.5
Market Cap	Rs m	339,858	350,322
Dividends per share (Unadj.)	Rs	6.7	5.7

Ratio Analysis for GUJARAT GAS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY24, from 0.7x 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 29.7x during FY24, from 31.4x 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 14.8% during FY24, from 21.7% 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 20.6% during FY24, from 29.8% 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 10.2% during FY24, from 14.6% 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	0.7	0.8
Debtors’ Days	Days	2	2
Interest coverage	x	31.4	29.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.6	10.2
Return on equity	%	21.7	14.8
Return on capital employed	%	29.8	20.6

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

GUJARAT GAS Share Price Performance

Over the last one year, GUJARAT GAS share price has moved up from Rs 464.4 to Rs 654.6, registering a gain of Rs 190.2 or around 40.9%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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