PANASONIC ENERGY (I) 2021-22 Annual Report Analysis

Tue, 12 Jul

PANASONIC ENERGY (I) has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

PANASONIC ENERGY (I) Income Statement Analysis

• Operating income during the year rose 3.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.1% in FY22 as against 5.8% in FY21.
• Depreciation charges increased by 10.8% and finance costs decreased by 51.4% YoY, respectively.
• Other income declined by 7.8% YoY.
• Net profit for the year declined by 9.1% YoY.
• Net profit margins during the year declined from 4.4% in FY21 to 3.9% in FY22.

PANASONIC ENERGY (I) Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,324	2,415	3.9%
Other income	Rs m	39	36	-7.8%
Total Revenues	Rs m	2,362	2,451	3.8%
Gross profit	Rs m	134	123	-8.3%
Depreciation	Rs m	29	32	10.8%
Interest	Rs m	5	2	-51.4%
Profit before tax	Rs m	140	125	-10.6%
Tax	Rs m	37	31	-14.9%
Profit after tax	Rs m	103	94	-9.1%
Gross profit margin	%	5.8	5.1
Effective tax rate	%	26.2	24.9
Net profit margin	%	4.4	3.9

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PANASONIC ENERGY (I) Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 311 million as compared to Rs 318 million in FY21, thereby witnessing an decrease of -2.1%.
• Current assets rose 1% and stood at Rs 1 billion, while fixed assets rose 4% and stood at Rs 327 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 1 billion during FY21, thereby witnessing a growth of 1%.

PANASONIC ENERGY (I) Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,061	1,086	2.3
Current Liabilities	Rs m	318	311	-2.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,395	1,414	1.4
Current assets	Rs m	1,081	1,087	0.6
Fixed Assets	Rs m	314	327	4.1
Total Assets	Rs m	1,395	1,414	1.4

PANASONIC ENERGY (I) Cash Flow Statement Analysis

• PANASONIC ENERGY (I)'s cash flow from operating activities (CFO) during FY22 stood at Rs -66 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 153 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -68 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 19 million from the Rs 43 million net cash flows seen during FY21.

PANASONIC ENERGY (I) Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	196	-66	-
Cash Flow from Investing Activities	Rs m	-113	153	-
Cash Flow from Financing Activities	Rs m	-40	-68	-
Net Cash Flow	Rs m	43	19	-55.3%

Current Valuations for PANASONIC ENERGY (I)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.5, an decline from the EPS of Rs 13.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 248.0, stands at 19.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 18.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	309.8	322.0
TTM Earnings per share	Rs	13.8	12.5
Diluted earnings per share	Rs	13.8	12.5
Price to Cash Flow	x	11.4	18.2
TTM P/E ratio	x	14.5	19.8
Price / Book Value ratio	x	1.3	2.1
Market Cap	Rs m	1,432	2,290
Dividends per share (Unadj.)	Rs	8.0	7.5

Ratio Analysis for PANASONIC ENERGY (I)

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.5x during FY22, from 3.4x during FY21. 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 56.6x during FY22, from 31.2x during FY21. 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 8.6% during FY22, from 9.7% during FY22. 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 11.7% during FY22, from 13.6% during FY21. 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 6.8% during FY22, from 7.7% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	3.4	3.5
Debtors’ Days	Days	87	86
Interest coverage	x	31.2	56.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.7	6.8
Return on equity	%	9.7	8.6
Return on capital employed	%	13.6	11.7

To see how PANASONIC ENERGY (I) has performed over the last 5 years, please visit here.

PANASONIC ENERGY (I) Share Price Performance

Over the last one year, PANASONIC ENERGY (I) share price has moved down from Rs 280.1 to Rs 248.0, registering a loss of Rs 32.1 or around 11.4%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 37,236.5 (down 0.6%). Over the last one year it has moved up from 35,837.8 to 37,236.5, a gain of 1,399 points (up 3.9%).

Overall, the S&P BSE SENSEX is up 2.5% over the year.

(To know more, check out historical annual results for PANASONIC ENERGY (I) and quarterly results for PANASONIC ENERGY (I))

Read: Latest Annual Report Analysis of PANASONIC ENERGY (I)