Godavari Biorefineries Annual Reports, Balance Sheet and Financials

Godavari Biorefineries Limited Balance Sheet (Rs in Lakhs)

Godavari Biorefineries Limited Profit & Loss Statement (Rs in Lakhs) 

Godavari Biorefineries Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Here is the analysis of cash flow for year March 2023 and 2022:

CASH FLOWS FROM OPERATING ACTIVITIES:

Profit / (Loss) before income tax:

2023: ₹3,126.43 million

2022: ₹3,255.57 million

Explanation: The Company’s profit before tax decreased slightly, indicating a small decline in profitability from core operations.

Depreciation and amortization expense:

2023: ₹5,007.62 million

2022: ₹4,802.51 million

Explanation: Depreciation and amortization expenses increased, reflecting higher allocation of costs for using long-term assets.

(Profit) / Loss on Sale of Property, Plant and Equipment:

2023: -₹24.54 million

2022: Not applicable

Explanation: The Company made a profit on the sale of assets, contributing a gain to the operating cash flow.

Sundry Debit/Credit Balances Written Off/Back (Net):

2023: -₹311.30 million

2022: -₹23.87 million

Explanation: The Company wrote off or adjusted net balances, positively impacting the operating cash flow.

Write off / Net loss on disposal of property, plant and equipment:

2023: ₹121.13 million

2022: ₹52.94 million

Explanation: Increased write-offs and losses on asset disposals, indicating higher asset disposal costs.

Loss Allowance on receivables:

2023: ₹78.49 million

2022: ₹447.33 million

Explanation: Decreased loss allowance on receivables suggests better receivables management or improved customer payment behavior.

Loss Allowance on advances:

2023: Not applicable

2022: ₹122.47 million

Explanation: No additional loss allowance on advances was recorded, unlike the previous year.

Interest income classified as investing cash flows:

2023: -₹235.82 million

2022: -₹259.68 million

Explanation: Interest income reduced slightly, indicating lower returns from investing activities.

Interest and finance charges:

2023: ₹7,278.98 million

2022: ₹6,043.89 million

Explanation: Higher interest and finance charges suggest increased borrowing or higher interest rates.

Governments grant income:

2023: -₹18.32 million

2022: -₹19.36 million

Explanation: Government grant income slightly decreased, contributing to cash inflows.

Loss on sale of investment:

2023: Not applicable

2022: ₹2.50 million

Explanation: No loss on the sale of investments was recorded, unlike the previous year.

Fair value gain on financial instruments at fair value through profit and loss:

2023: ₹77.19 million

2022: -₹39.84 million

Explanation: A gain on financial instruments contributed positively to cash flows, compared to a loss in the previous year.

Dividend Income:

2023: -₹22.12 million

2022: -₹13.48 million

Explanation: Increased dividend income, reducing net cash inflow from operating activities.

Unrealised foreign currency (gain)/loss:

2023: -₹356.20 million

2022: ₹10.19 million

Explanation: A gain from foreign currency exchange differences positively impacted cash flow, unlike a loss in the previous year.

Change in operating assets and liabilities:

Trade payables:

2023: -₹17,134.86 million

2022: ₹19,323.70 million

Explanation: Significant decrease in trade payables indicates faster payments to suppliers.

Other liabilities:

2023: ₹6,011.80 million

2022: ₹117.13 million

Explanation: Increase in other liabilities, reflecting higher obligations.

Provisions:

2023: -₹120.80 million

2022: ₹11.51 million

Explanation: Reduction in provisions, indicating fewer anticipated future expenses.

Trade receivables:

2023: -₹2,639.76 million

2022: -₹1,439.24 million

Explanation: Increase in trade receivables, implying higher outstanding customer payments.

Inventories:

2023: ₹13,182.13 million

2022: -₹22,859.80 million

Explanation: Significant decrease in inventory levels, indicating better inventory management.

Other assets:

2023: ₹4,210.32 million

2022: -₹4,558.55 million

Explanation: Reduction in other assets, suggesting improved asset utilization.

Other bank balance:

2023: ₹1,320.89 million

2022: -₹346.18 million

Explanation: Increase in other bank balances, contributing to higher cash flow.

Cash generated from operations:

2023: ₹19,551.23 million

2022: ₹4,629.74 million

Explanation: Significant increase in cash generated from operations, indicating improved operational efficiency and cash flow management.

Less: Income taxes (paid) refund received:

2023: -₹165.46 million

2022: -₹98.44 million

Explanation: Increase in taxes paid, reflecting higher tax obligations.

Net cash inflow from operating activities:

2023: ₹19,385.77 million

2022: ₹4,531.30 million

Explanation: Substantial increase in net cash inflow from operating activities, indicating strong operational performance.

CASH FLOWS FROM INVESTING ACTIVITIES:

Payments for purchase of property, plant, and equipment (net):

2023: -₹21,723.17 million

2022: -₹5,038.97 million

Explanation: Significant increase in capital expenditures, reflecting investment in growth and capacity expansion.

Proceed from sale of property, plant, and equipment:

2023: ₹15.38 million

2022: ₹100.15 million

Explanation: Decrease in proceeds from asset sales, indicating fewer asset disposals.

Proceed from sale of investment:

2023: Not applicable

2022: ₹2 million

Explanation: No proceeds from the sale of investments, unlike the previous year.

Interest received:

2023: ₹343.41 million

2022: ₹259.68 million

Explanation: Increase in interest received, contributing positively to cash flows from investing activities.

Dividend Income:

2023: ₹22.12 million

2022: ₹13.48 million

Explanation: Increase in dividend income, enhancing cash inflows from investments.

Net cash outflow from investing activities:

2023: -₹21,342.26 million

2022: -₹4,663.66 million

Explanation: Significant increase in net cash outflow, primarily due to higher capital expenditures.

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from current / non-current borrowings:

2023: ₹22,319.42 million

2022: ₹14,433.29 million

Explanation: Increase in borrowings, indicating reliance on external financing for operations or expansion.

Repayment of current / non-current borrowings:

2023: -₹7,686.66 million

2022: -₹5,953.62 million

Explanation: Increase in debt repayments, reflecting efforts to reduce debt levels.

Pre-repayment of current / non-current borrowings:

2023: -₹4,500.00 million

2022: -₹1,581.61 million

Explanation: Higher pre-repayment of borrowings, indicating proactive debt management.

Repayment of Lease Liabilities:

2023: -₹24.82 million

2022: ₹14.70 million

Explanation: Increase in lease liability repayments, reflecting obligations under lease agreements.

Interest and finance charges paid:

2023: -₹7,026.65 million

2022: -₹6,466.72 million

Explanation: Increase in interest and finance charges

Financial Ratios of Godavari Biorefineries Limited

Here is the summary of financial and operational metrics for Godavari Biorefineries Limited for year 2023 & 2022:

Current Ratio

2023: 1.08

2022: 1.07

Analysis: The current ratio is slightly above 1 for both years, indicating the company has enough current assets to cover its current liabilities. This small increase suggests a marginal improvement in liquidity.

Debt-Equity Ratio

2023: 2.96

2022: 2.73

Analysis: The debt-equity ratio has increased, indicating a higher reliance on debt financing compared to equity. This increase might signal higher financial risk, but it could also mean the company is leveraging debt to fuel growth.

Debt Service Coverage Ratio

2023: 0.95

2022: 1.07

Analysis: The debt service coverage ratio has decreased, falling below 1. This indicates that the company may struggle to cover its debt obligations from its operating income, which could be a potential red flag for financial stability.

Return on Equity Ratio

2023: 0.08

2022: 0.09

Analysis: The return on equity has slightly decreased, suggesting a minor decline in profitability from the shareholders ' perspective. This could be due to increased costs or lower net income.

Inventory Turnover Ratio

2023: 3.08

2022: 2.83

Analysis: An increase in the inventory turnover ratio indicates better efficiency in managing and selling inventory. This improvement suggests the company is converting inventory into sales more quickly.

Trade Receivable Turnover Ratio

2023: 10.26

2022: 9.68

Analysis: The increase in this ratio implies that the company is more effective in collecting receivables. This could lead to improved cash flow and lower credit risk.

Trade Payable Turnover Ratio

2023: 2.71

2022: 2.57

Analysis: A higher trade payable turnover ratio indicates that the company is paying its suppliers more quickly. This could be due to better cash management or stronger supplier relationships.

Net Capital Turnover Ratio

2023: 32.87

2022: 24.82

Analysis: A significant increase in the net capital turnover ratio shows that the company is generating more sales per unit of working capital. This reflects improved operational efficiency.

Net Profit Ratio

2023: 0.01

2022: 0.01

Analysis: The net profit ratio remains constant, indicating that the company’s profitability as a percentage of sales has remained stable. This could mean steady pricing and cost management.

Return on Capital Employed

2023: 0.11

2022: 0.11

Analysis: The return on capital employed remains unchanged, suggesting consistent efficiency in generating returns from the company’s capital. It indicates stable performance in utilizing the capital employed.

Return on Investment

2023: 0.08

2022: 0.06

Analysis: A notable increase in return on investment indicates better profitability from investments. This suggests that the company’s investment decisions are yielding higher returns.

Dividend History

Godavari Biorefineries Limited Recent Financial Performance:

Dividend per Share: The specific dividend per share figure for March 2023 and 2022 is not provided; Dividend per share represents the portion of a company 's earnings that is distributed to shareholders in the form of dividends. A higher dividend per share may indicate that the company is sharing more of its profits with shareholders.

Retained Earnings: Retained earnings for 2023 amounted to Rs. 15,545.64 Lakhs, while in 2022, they were Rs. 14,533.10 Lakhs. Retained earnings represent the portion of a company 's profits that is reinvested in the business rather than distributed as dividends. An increase in retained earnings suggests that the company has retained more of its profits for reinvestment or future growth.

To provide a more comprehensive analysis, it would be necessary to consider additional financial metrics such as revenue, net profit, assets, liabilities, and cash flows. Additionally, an analysis of trends over multiple years and a comparison to industry benchmarks and competitors would help in assessing the company 's financial health and performance.