PROZONE INTU 2020-21 Annual Report Analysis

Wed, 31 Mar

PROZONE INTU has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

PROZONE INTU Income Statement Analysis

• Operating income during the year fell 47.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 60.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 42.6% in FY21 as against 57.0% in FY20.
• Depreciation charges decreased by 9.5% and finance costs increased by 8.0% YoY, respectively.
• Other income declined by 32.0% YoY.
• Net profit for the year grew by 832.5% YoY.
• Net profit margins during the year declined from 5.3% in FY20 to 93.1% in FY21.

PROZONE INTU Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	850	449	-47.2%
Other income	Rs m	201	137	-32.0%
Total Revenues	Rs m	1,052	586	-44.3%
Gross profit	Rs m	484	191	-60.6%
Depreciation	Rs m	334	302	-9.5%
Interest	Rs m	415	448	8.0%
Profit before tax	Rs m	-63	-422	565.6%
Tax	Rs m	-19	-5	-73.5%
Profit after tax	Rs m	-45	-418	832.5%
Gross profit margin	%	57.0	42.6
Effective tax rate	%	29.5	1.2
Net profit margin	%	-5.3	-93.1

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PROZONE INTU Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 4 billion as compared to Rs 4 billion in FY20, thereby witnessing an increase of 2.5%.
• Long-term debt stood at Rs 4 billion as compared to Rs 4 billion during FY20, a growth of 11.0%.
• Current assets rose 15% and stood at Rs 6 billion, while fixed assets fell 8% and stood at Rs 9 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 15 billion as against Rs 15 billion during FY20, thereby witnessing a growth of 0%.

PROZONE INTU Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,965	4,807	-3.2
Current Liabilities	Rs m	3,776	3,872	2.5
Long-term Debt	Rs m	3,668	4,070	11.0
Total Liabilities	Rs m	15,262	15,322	0.4
Current assets	Rs m	5,556	6,367	14.6
Fixed Assets	Rs m	9,706	8,955	-7.7
Total Assets	Rs m	15,262	15,322	0.4

PROZONE INTU Cash Flow Statement Analysis

• PROZONE INTU's cash flow from operating activities (CFO) during FY21 stood at Rs -183 million, an improvement of 1.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 524 million, an improvement of 1,103.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 40 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 381 million from the Rs 60 million net cash flows seen during FY20.

PROZONE INTU Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	-181	-183	-
Cash Flow from Investing Activities	Rs m	44	524	1,103.1%
Cash Flow from Financing Activities	Rs m	197	40	-79.5%
Net Cash Flow	Rs m	60	381	535.5%

Current Valuations for PROZONE INTU

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.7, an decline from the EPS of Rs -0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 16.6, stands at -6.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 5.6 times.
• The company's price to cash flow (P/CF) ratio stood at -24.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	5.6	2.9
TTM Earnings per share	Rs	-0.3	-2.7
Diluted earnings per share	Rs	-0.3	-2.7
Price to Cash Flow	x	4.4	-24.1
TTM P/E ratio	x	-28.1	-6.1
Price / Book Value ratio	x	0.6	0.6
Market Cap	Rs m	3,140	2,781
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PROZONE INTU

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY21, from 1.5x during FY20. 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 0.1x during FY21, from 0.8x during FY20. 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 -8.7% during FY21, from -0.9% during FY21. 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 0.3% during FY21, from 4.1% during FY20. 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 0.2% during FY21, from 2.4% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.5	1.6
Debtors’ Days	Days	834	1,811
Interest coverage	x	0.8	0.1
Debt to equity ratio	x	0.7	0.8
Return on assets	%	2.4	0.2
Return on equity	%	-0.9	-8.7
Return on capital employed	%	4.1	0.3

To see how PROZONE INTU has performed over the last 5 years, please visit here.

PROZONE INTU Share Price Performance

Over the last one year, PROZONE INTU share price has moved up from Rs 8.3 to Rs 16.6, registering a gain of Rs 8.4 or around 101.2%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for PROZONE INTU and quarterly results for PROZONE INTU)

Read: Latest Annual Report Analysis of PROZONE INTU