PC JEWELLER 2022-23 Annual Report Analysis

Tue, 26 Sep

PC JEWELLER 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.

PC JEWELLER Income Statement Analysis

• Operating income during the year rose 54.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.3% in FY23 as against 5.7% in FY22.
• Depreciation charges decreased by 1.9% and finance costs increased by 12.9% YoY, respectively.
• Other income grew by 209.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 24.3% in FY22 to 8.2% in FY23.

PC JEWELLER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	16,061	24,727	54.0%
Other income	Rs m	528	1,633	209.1%
Total Revenues	Rs m	16,589	26,359	58.9%
Gross profit	Rs m	-909	2,554	NA
Depreciation	Rs m	278	272	-1.9%
Interest	Rs m	4,422	4,993	12.9%
Profit before tax	Rs m	-5,080	-1,079	NA
Tax	Rs m	-1,170	953	NA
Profit after tax	Rs m	-3,910	-2,032	NA
Gross profit margin	%	-5.7	10.3
Effective tax rate	%	23.0	-88.3
Net profit margin	%	-24.3	-8.2

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PC JEWELLER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 39 billion as compared to Rs 36 billion in FY22, thereby witnessing an increase of 8.1%.
• Current assets rose 4% and stood at Rs 63 billion, while fixed assets rose 0% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 76 billion as against Rs 74 billion during FY22, thereby witnessing a growth of 3%.

PC JEWELLER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	38,714	36,733	-5.1
Current Liabilities	Rs m	35,741	38,650	8.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	73,855	76,312	3.3
Current assets	Rs m	60,711	63,133	4.0
Fixed Assets	Rs m	13,144	13,179	0.3
Total Assets	Rs m	73,855	76,312	3.3

PC JEWELLER Cash Flow Statement Analysis

• PC JEWELLER's cash flow from operating activities (CFO) during FY23 stood at Rs 995 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 299 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 185 million from the Rs -344 million net cash flows seen during FY22.

PC JEWELLER 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	-7,194	995	-
Cash Flow from Investing Activities	Rs m	1,149	299	-74.0%
Cash Flow from Financing Activities	Rs m	5,701	-1,109	-
Net Cash Flow	Rs m	-344	185	-

Current Valuations for PC JEWELLER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.4, an improvement from the EPS of Rs -8.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 26.4, stands at -2.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at -16.3 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	34.5	53.1
TTM Earnings per share	Rs	-8.4	-4.4
Diluted earnings per share	Rs	-8.4	-4.4
Price to Cash Flow	x	-2.7	-16.3
TTM P/E ratio	x	-2.5	-2.7
Price / Book Value ratio	x	0.3	0.8
Market Cap	Rs m	11,507	28,762
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PC JEWELLER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.7x 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 0.8x during FY23, from -0.1x 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 improved and stood at -5.5% during FY23, from -10.1% 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 improved and stood at 10.7% during FY23, from -1.7% 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 3.9% during FY23, from 0.7% 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	1.7	1.6
Debtors’ Days	Days	6	6
Interest coverage	x	-0.1	0.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.7	3.9
Return on equity	%	-10.1	-5.5
Return on capital employed	%	-1.7	10.7

To see how PC JEWELLER has performed over the last 5 years, please visit here.

PC JEWELLER Share Price Performance

Over the last one year, PC JEWELLER share price has moved down from Rs 86.9 to Rs 26.4, registering a loss of Rs 60.5 or around 69.6%.

Overall, the S&P BSE SENSEX is up 11.5% over the year.

(To know more, check out historical annual results for PC JEWELLER and quarterly results for PC JEWELLER)