GUJARAT FLUOROCHEMICALS 2023-24 Annual Report Analysis

Mon, 9 Sep

GUJARAT FLUOROCHEMICALS 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 FLUOROCHEMICALS Income Statement Analysis

• Operating income during the year fell 24.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 53.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.2% in FY24 as against 34.6% in FY23.
• Depreciation charges increased by 21.2% and finance costs increased by 13.9% YoY, respectively.
• Other income declined by 38.3% YoY.
• Net profit for the year declined by 67.1% YoY.
• Net profit margins during the year declined from 23.3% in FY23 to 10.2% in FY24.

GUJARAT FLUOROCHEMICALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	56,847	42,808	-24.7%
Other income	Rs m	1,734	1,069	-38.3%
Total Revenues	Rs m	58,581	43,877	-25.1%
Gross profit	Rs m	19,642	9,074	-53.8%
Depreciation	Rs m	2,361	2,861	21.2%
Interest	Rs m	1,168	1,331	13.9%
Profit before tax	Rs m	17,847	5,951	-66.7%
Tax	Rs m	4,617	1,601	-65.3%
Profit after tax	Rs m	13,230	4,350	-67.1%
Gross profit margin	%	34.6	21.2
Effective tax rate	%	25.9	26.9
Net profit margin	%	23.3	10.2

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GUJARAT FLUOROCHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 25 billion as compared to Rs 23 billion in FY23, thereby witnessing an increase of 7.0%.
• Long-term debt stood at Rs 4 billion as compared to Rs 2 billion during FY23, a growth of 103.6%.
• Current assets fell 2% and stood at Rs 34 billion, while fixed assets rose 20% and stood at Rs 58 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 92 billion as against Rs 84 billion during FY23, thereby witnessing a growth of 10%.

GUJARAT FLUOROCHEMICALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	55,207	59,363	7.5
Current Liabilities	Rs m	23,389	25,028	7.0
Long-term Debt	Rs m	1,832	3,731	103.6
Total Liabilities	Rs m	83,711	92,330	10.3
Current assets	Rs m	34,712	34,035	-1.9
Fixed Assets	Rs m	48,732	58,295	19.6
Total Assets	Rs m	83,711	92,330	10.3

GUJARAT FLUOROCHEMICALS Cash Flow Statement Analysis

• GUJARAT FLUOROCHEMICALS's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -10 billion, an improvement of 102.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion, an improvement of 232% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 75 million from the Rs -16 million net cash flows seen during FY23.

GUJARAT FLUOROCHEMICALS 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	7,389	6,264	-15.2%
Cash Flow from Investing Activities	Rs m	-4,764	-9,665	-
Cash Flow from Financing Activities	Rs m	-2,641	3,476	-
Net Cash Flow	Rs m	-16	75	-

Current Valuations for GUJARAT FLUOROCHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.6, an decline from the EPS of Rs 120.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,950.0, stands at 126.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.3 times, while the price to sales ratio stands at 10.1 times.
• The company's price to cash flow (P/CF) ratio stood at 49.3 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	517.5	389.7
TTM Earnings per share	Rs	120.4	39.6
Diluted earnings per share	Rs	120.4	39.6
Price to Cash Flow	x	21.2	49.3
TTM P/E ratio	x	25.0	126.9
Price / Book Value ratio	x	6.2	6.0
Market Cap	Rs m	344,825	355,362
Dividends per share (Unadj.)	Rs	4.0	3.0

Ratio Analysis for GUJARAT FLUOROCHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 1.5x 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 5.5x during FY24, from 16.3x 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 7.3% during FY24, from 24.0% 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 11.5% during FY24, from 33.3% 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 6.2% during FY24, from 17.2% 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	1.5	1.4
Debtors’ Days	Days	711	720
Interest coverage	x	16.3	5.5
Debt to equity ratio	x	0.0	0.1
Return on assets	%	17.2	6.2
Return on equity	%	24.0	7.3
Return on capital employed	%	33.3	11.5

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

GUJARAT FLUOROCHEMICALS Share Price Performance

Over the last one year, GUJARAT FLUOROCHEMICALS share price has moved up from Rs 3,071.4 to Rs 3,950.0, registering a gain of Rs 878.7 or around 28.6%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

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