Gujarat Wedge Wire Annual Reports, Balance Sheet and Financials

Gujarat Wedge Wires Screens Limited Balance Sheet (Rs in Thousands)

Gujarat Wedge Wires Screens Limited Profit & Loss Statement (Rs in Thousands)

Gujarat Wedge Wires Screens Limited Consolidated Cash Flow Statement (Rs in Thousands)

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

Cash Flow from Operating Activities:

Net Profit (Loss) Before Extraordinary Items and Tax:

2023: ₹2,703.50 million

2022: ₹866.58 million

Analysis: There has been a significant increase in net profit from 2022 to 2023, indicating improved profitability.

Adjustments:

Depreciation:

2023: ₹960.96 million

2022: ₹1,090.60 million

Analysis: Depreciation has decreased slightly, indicating potentially lower asset base growth or improved asset utilization efficiency.

Deferred Tax:

2023: -₹73.03 million (Deferred tax benefit)

2022: ₹317.39 million (Deferred tax expense)

Analysis: A significant change from expense to benefit suggests favorable tax adjustments impacting cash flow positively in 2023.

Interest and Financial Charges:

2023: ₹744.78 million

2022: ₹782.81 million

Analysis: Slight decrease in interest and financial charges, indicating potential refinancing or cost management efforts.

Interest Received:

2023: -₹3.65 million

2022: -₹1.41 million

Analysis: Interest received has increased, indicating better cash flow from interest income.

Profit on Sale of Asset:

2023: -

2022: -₹145 million

Analysis: No profit recorded in 2023 compared to a sale in 2022.

Operating Profit before Working Capital Changes:

2023: ₹4,332.55 million

2022: ₹2,910.97 million

Analysis: Significant increase in operating profit before working capital changes, reflecting improved operational performance.

Working Capital Changes:

Inventories:

2023: -₹2,947.58 million

2022: -₹1,704.74 million

Analysis: Increase in inventory holding impacting cash flow negatively in 2023.

Accounts Receivables:

2023: ₹951.43 million

2022: ₹859.25 million

Analysis: Increase in accounts receivable impacting cash flow positively in 2023.

Trade Payables and Other Liabilities:

2023: ₹1,879.36 million (Payables), -₹1,720.68 million (Liabilities)

2022: ₹879.64 million (Payables), -₹1,007.09 million (Liabilities)

Analysis: Increase in payables and decrease in liabilities impacting cash flow positively in 2023.

Net Cash from Operating Activities:

2023: ₹1,694.71 million

2022: ₹1,526.32 million

Analysis: Overall, a moderate increase in net cash from operating activities, reflecting improved operational efficiency and profitability adjustments.

Cash Flow from Investing Activities:

Purchase and Sale of Fixed Assets:

Purchase:

2023: -₹1,562.24 million

2022: -₹292.74 million

Analysis: Significant increase in capital expenditures in 2023, impacting cash flow negatively.

Net Cash Used in Investing Activities:

2023: -₹1,562.24 million

2022: -₹147.74 million

Analysis: Substantial increase in cash used for investing activities in 2023 due to higher capital expenditure.

Cash Flow from Financing Activities:

Issue of Shares and Share Premium:

2023: ₹799 million (Shares), ₹526.32 million (Share Premium)

2022: -

Analysis: Capital rose through new share issues in 2023, contributing positively to cash flow.

Short-Term Borrowings and Finance Costs:

2023: ₹441.48 million (Proceeds), -₹744.78 million (Costs)

2022: -₹422.75 million (Proceeds), -₹782.81 million (Costs)

Analysis: Positive net cash from financing activities in 2023, despite higher finance costs.

Financial Ratios of Gujarat Wedge Wires Screens Limited

Here is the summary of financial and operational metrics for Gujarat Wedge Wires Screens Limited for year 2023 & 2022:

Current Ratio:

2023: 0.71

2022: 0.57

Analysis: The current ratio measures the company 's ability to cover its short-term liabilities with its short-term assets. A ratio below 1 indicates that current liabilities exceed current assets. The increase from 2022 to 2023 suggests an improvement in liquidity, although the ratio is still below 1, indicating potential liquidity challenges.

Debt-Equity Ratio:

2023: -4.86

2022: -2.24

Analysis: A negative debt-equity ratio indicates that the company has more equity than debt. However, such extreme negative ratios can sometimes indicate unusual financial structures or accounting treatments. The increase in the ratio from 2022 to 2023 suggests a significant change in the company 's capital structure, potentially reducing debt relative to equity.

Debt Service Coverage Ratio:

2023: 3.13

2022: 1.64

Analysis: This ratio measures the company 's ability to cover its debt obligations with its operating income. An increase indicates improved ability to service debt, which is positive and suggests better financial health and lower default risk.

Return on Equity (ROE) Ratio:

2023: -52.36%

2022: -11.39%

Analysis: ROE measures the company 's profitability relative to shareholders ' equity. A negative ROE indicates that the company is generating net losses relative to its equity. The significant decrease from 2022 to 2023 suggests worsening profitability relative to shareholders ' equity, which could be concerning.

Inventory Turnover Ratio:

2023: 118.42

2022: 111.30

Analysis: This ratio indicates how efficiently inventory is managed. An increase suggests faster turnover of inventory, which generally indicates efficient inventory management and possibly increased sales activity.

Trade Receivable Turnover Ratio:

2023: 17.97

2022: 38.77

Analysis: This ratio measures how efficiently receivables are collected. A decrease indicates that receivables are taking longer to convert into cash, which could be due to changes in credit policies or difficulties in collecting from customers.

Trade Payable Turnover Ratio:

2023: 103.59

2022: 116.73

Analysis: This ratio measures how quickly the company pays its suppliers. A decrease suggests that the company is taking longer to pay its suppliers, which could indicate better cash management or strained supplier relationships.

Net Capital Turnover Ratio:

2023: -7.43

2022: -4.06

Analysis: This ratio measures how efficiently capital is used to generate revenue. A negative ratio indicates inefficiency in capital utilization. The increase in the negative ratio suggests worsening efficiency in capital turnover, which could indicate issues in operations or investment decisions.

Net Profit Ratio:

2023: 7.25%

2022: 3.36%

Analysis: This ratio measures net profit relative to total revenue. An increase indicates improved profitability. The increase from 2022 to 2023 suggests improved profitability, which is a positive indicator.

Return on Capital Employed (ROCE) Ratio:

2023: 78.01%

2022: 123.90%

Analysis: ROCE measures profitability relative to the capital employed (both equity and debt). A decrease indicates lower profitability relative to capital employed. The decrease from 2022 to 2023 suggests a decline in profitability relative to the amount of capital invested.

Return on Investment (ROI) Ratio:

2023: 85.86%

2022: -12.07%

Analysis: ROI measures the return on the total investment made in the company. A negative ROI indicates a loss on investment. The increase from a negative to a positive ROI from 2022 to 2023 indicates a turnaround in investment profitability, which is positive.