GULSHAN POLYOLS 2023-24 Annual Report Analysis

Wed, 11 Sep

GULSHAN POLYOLS 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.

GULSHAN POLYOLS Income Statement Analysis

• Operating income during the year rose 16.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 33.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.2% in FY24 as against 7.4% in FY23.
• Depreciation charges increased by 12.6% and finance costs increased by 65.1% YoY, respectively.
• Other income grew by 70.1% YoY.
• Net profit for the year declined by 60.7% YoY.
• Net profit margins during the year declined from 3.8% in FY23 to 1.3% in FY24.

GULSHAN POLYOLS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,797	13,780	16.8%
Other income	Rs m	72	122	70.1%
Total Revenues	Rs m	11,869	13,902	17.1%
Gross profit	Rs m	879	581	-33.9%
Depreciation	Rs m	287	324	12.6%
Interest	Rs m	61	101	65.1%
Profit before tax	Rs m	602	278	-53.8%
Tax	Rs m	150	100	-33.1%
Profit after tax	Rs m	452	178	-60.7%
Gross profit margin	%	7.4	4.2
Effective tax rate	%	24.9	36.1
Net profit margin	%	3.8	1.3

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GULSHAN POLYOLS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 16.0%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY23, a growth of 79.0%.
• Current assets rose 13% and stood at Rs 4 billion, while fixed assets rose 19% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 10 billion during FY23, thereby witnessing a growth of 17%.

GULSHAN POLYOLS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,749	5,903	2.7
Current Liabilities	Rs m	2,666	3,091	16.0
Long-term Debt	Rs m	1,275	2,282	79.0
Total Liabilities	Rs m	9,877	11,564	17.1
Current assets	Rs m	3,823	4,336	13.4
Fixed Assets	Rs m	6,054	7,229	19.4
Total Assets	Rs m	9,877	11,564	17.1

GULSHAN POLYOLS Cash Flow Statement Analysis

• GULSHAN POLYOLS's cash flow from operating activities (CFO) during FY24 stood at Rs 663 million, an improvement of 329.2% 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 876 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -44 million from the Rs -1 billion net cash flows seen during FY23.

GULSHAN POLYOLS 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	154	663	329.2%
Cash Flow from Investing Activities	Rs m	-2,472	-1,583	-
Cash Flow from Financing Activities	Rs m	1,243	876	-29.5%
Net Cash Flow	Rs m	-1,075	-44	-

Current Valuations for GULSHAN POLYOLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an decline from the EPS of Rs 8.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 246.5, stands at 66.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 28.5 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	227.0	220.9
TTM Earnings per share	Rs	8.7	2.8
Diluted earnings per share	Rs	7.2	2.8
Price to Cash Flow	x	17.1	28.5
TTM P/E ratio	x	27.8	66.6
Price / Book Value ratio	x	2.6	2.4
Market Cap	Rs m	14,810	14,284
Dividends per share (Unadj.)	Rs	0.5	0.3

Ratio Analysis for GULSHAN POLYOLS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x 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 3.7x during FY24, from 10.8x 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 3.0% during FY24, from 7.9% 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 declined and down at 4.6% during FY24, from 9.4% 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 2.4% during FY24, from 5.2% 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	1.4	1.4
Debtors’ Days	Days	438	442
Interest coverage	x	10.8	3.7
Debt to equity ratio	x	0.2	0.4
Return on assets	%	5.2	2.4
Return on equity	%	7.9	3.0
Return on capital employed	%	9.4	4.6

To see how GULSHAN POLYOLS has performed over the last 5 years, please visit here.

GULSHAN POLYOLS Share Price Performance

Over the last one year, GULSHAN POLYOLS share price has moved up from Rs 228.2 to Rs 246.5, registering a gain of Rs 18.4 or around 8.0%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for GULSHAN POLYOLS and quarterly results for GULSHAN POLYOLS)