PTC INDIA 2022-23 Annual Report Analysis

Wed, 4 Oct

PTC INDIA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

PTC INDIA Income Statement Analysis

• Operating income during the year fell 5.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.5% in FY23 as against 9.3% in FY22.
• Depreciation charges increased by 0.2% and finance costs decreased by 20.1% YoY, respectively.
• Other income grew by 2.2% YoY.
• Net profit for the year declined by 8.1% YoY.
• Net profit margins during the year declined from 3.3% in FY22 to 3.2% in FY23.

PTC INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	168,564	159,706	-5.3%
Other income	Rs m	312	319	2.2%
Total Revenues	Rs m	168,876	160,025	-5.2%
Gross profit	Rs m	15,723	13,551	-13.8%
Depreciation	Rs m	1,013	1,015	0.2%
Interest	Rs m	7,574	6,051	-20.1%
Profit before tax	Rs m	7,448	6,804	-8.6%
Tax	Rs m	1,931	1,732	-10.3%
Profit after tax	Rs m	5,517	5,072	-8.1%
Gross profit margin	%	9.3	8.5
Effective tax rate	%	25.9	25.5
Net profit margin	%	3.3	3.2

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PTC INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 59 billion as compared to Rs 83 billion in FY22, thereby witnessing an decrease of -29.0%.
• Long-term debt down at Rs 48 billion as compared to Rs 61 billion during FY22, a fall of 20.3%.
• Current assets fell 23% and stood at Rs 89 billion, while fixed assets fell 7% and stood at Rs 77 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 166 billion as against Rs 199 billion during FY22, thereby witnessing a fall of 16%.

PTC INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	47,235	50,187	6.3
Current Liabilities	Rs m	82,642	58,671	-29.0
Long-term Debt	Rs m	60,611	48,331	-20.3
Total Liabilities	Rs m	198,707	165,984	-16.5
Current assets	Rs m	115,705	88,808	-23.2
Fixed Assets	Rs m	83,000	77,175	-7.0
Total Assets	Rs m	198,707	165,984	-16.5

PTC INDIA Cash Flow Statement Analysis

• PTC INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 36 billion, an improvement of 17.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 2 billion, an improvement of 263.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -40 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -3 billion from the Rs 3 billion net cash flows seen during FY22.

PTC INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	30,492	35,751	17.2%
Cash Flow from Investing Activities	Rs m	461	1,677	263.6%
Cash Flow from Financing Activities	Rs m	-27,877	-40,190	-
Net Cash Flow	Rs m	3,076	-2,762	-

Current Valuations for PTC INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.1, an decline from the EPS of Rs 18.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 130.9, stands at 7.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 4.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	569.5	539.5
TTM Earnings per share	Rs	18.6	17.1
Diluted earnings per share	Rs	18.6	17.1
Price to Cash Flow	x	3.7	4.5
TTM P/E ratio	x	4.4	7.5
Price / Book Value ratio	x	0.7	0.5
Market Cap	Rs m	32,850	27,418
Dividends per share (Unadj.)	Rs	7.8	7.8

Ratio Analysis for PTC INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.4x during FY22. 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 improved and stood at 2.1x during FY23, from 2.0x during FY22. 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 10.1% during FY23, from 11.7% during FY23. 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 13.0% during FY23, from 13.9% during FY22. 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 improved and stood at 6.7% during FY23, from 6.6% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.4	1.5
Debtors’ Days	Days	16	13
Interest coverage	x	2.0	2.1
Debt to equity ratio	x	1.3	1.0
Return on assets	%	6.6	6.7
Return on equity	%	11.7	10.1
Return on capital employed	%	13.9	13.0

To see how PTC INDIA has performed over the last 5 years, please visit here.

PTC INDIA Share Price Performance

Over the last one year, PTC INDIA share price has moved up from Rs 77.7 to Rs 130.9, registering a gain of Rs 53.2 or around 68.5%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,554.5 (down 1.4%). Over the last one year it has moved down from 4,702.9 to 4,554.5, a loss of 148 points (down 3.2%).

Overall, the S&P BSE SENSEX is up 15.7% over the year.

(To know more, check out historical annual results for PTC INDIA and quarterly results for PTC INDIA)