PAGE INDUSTRIES 2019-20 Annual Report Analysis

Wed, 9 Dec

PAGE INDUSTRIES has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

PAGE INDUSTRIES Income Statement Analysis

• Operating income during the year rose 3.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.1% in FY20 as against 21.6% in FY19.
• Depreciation charges increased by 97.6% and finance costs increased by 108.2% YoY, respectively.
• Other income declined by 32.4% YoY.
• Net profit for the year declined by 12.9% YoY.
• Net profit margins during the year declined from 13.6% in FY19 to 11.6% in FY20.

PAGE INDUSTRIES Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	28,522	29,454	3.3%
Other income	Rs m	364	246	-32.4%
Total Revenues	Rs m	28,886	29,701	2.8%
Gross profit	Rs m	6,169	5,326	-13.7%
Depreciation	Rs m	311	614	97.6%
Interest	Rs m	163	339	108.2%
Profit before tax	Rs m	6,060	4,620	-23.8%
Tax	Rs m	2,121	1,188	-44.0%
Profit after tax	Rs m	3,939	3,432	-12.9%
Gross profit margin	%	21.6	18.1
Effective tax rate	%	35.0	25.7
Net profit margin	%	13.6	11.6

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PAGE INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY20 stood at Rs 6 billion as compared to Rs 5 billion in FY19, thereby witnessing an increase of 4.3%.
• Long-term debt stood at Rs 201 million as compared to Rs 199 million during FY19, a growth of 1.0%.
• Current assets rose 1% and stood at Rs 10 billion, while fixed assets rose 41% and stood at Rs 4 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 15 billion as against Rs 14 billion during FY19, thereby witnessing a growth of 12%.

PAGE INDUSTRIES Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	7,750	8,199	5.8
Current Liabilities	Rs m	5,339	5,566	4.3
Long-term Debt	Rs m	199	201	1.0
Total Liabilities	Rs m	13,506	15,129	12.0
Current assets	Rs m	10,048	10,145	1.0
Fixed Assets	Rs m	3,079	4,343	41.1
Total Assets	Rs m	13,506	15,129	12.0

PAGE INDUSTRIES Cash Flow Statement Analysis

• PAGE INDUSTRIES's cash flow from operating activities (CFO) during FY20 stood at Rs 5 billion, an improvement of 124.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -266 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -4 billion, an improvement of 15% on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs 1 billion from the Rs -216 million net cash flows seen during FY19.

PAGE INDUSTRIES Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-19	Mar-20
Cash Flow from Operating Activities	Rs m	2,297	5,167	124.9%
Cash Flow from Investing Activities	Rs m	1,920	-266	-
Cash Flow from Financing Activities	Rs m	-4,433	-3,775	-
Net Cash Flow	Rs m	-216	1,126	-

Current Valuations for PAGE INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 307.8, an decline from the EPS of Rs 353.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 24,292.3, stands at 78.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 29.3 times, while the price to sales ratio stands at 8.2 times.
• The company's price to cash flow (P/CF) ratio stood at 66.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Sales per share (Unadj.)	Rs	2,558.0	2,641.6
TTM Earnings per share	Rs	353.3	307.8
Diluted earnings per share	Rs	353.3	307.8
Price to Cash Flow	x	63.7	66.9
TTM P/E ratio	x	78.9	78.9
Price / Book Value ratio	x	40.0	29.3
Market Cap	Rs m	270,859	270,859
Dividends per share (Unadj.)	Rs	344.0	161.0

Ratio Analysis for PAGE INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY20, from 1.9x during FY19. 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 14.6x during FY20, from 38.3x during FY19. 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 41.9% during FY20, from 50.8% during FY20. 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 59.0% during FY20, from 78.3% during FY19. 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 24.9% during FY20, from 30.4% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Current ratio	x	1.9	1.8
Debtors’ Days	Days	16	9
Interest coverage	x	38.3	14.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	30.4	24.9
Return on equity	%	50.8	41.9
Return on capital employed	%	78.3	59.0

To see how PAGE INDUSTRIES has performed over the last 5 years, please visit here.

PAGE INDUSTRIES Share Price Performance

Over the last one year, PAGE INDUSTRIES share price has moved up from Rs 21,907.8 to Rs 24,292.3, registering a gain of Rs 2,384.5 or around 10.9%.

Overall, the S&P BSE SENSEX is up 13.9% over the year.

(To know more, check out historical annual results for PAGE INDUSTRIES and quarterly results for PAGE INDUSTRIES)