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PROZONE INTU 2022-23 Annual Report Analysis

Fri, 31 Mar

PROZONE INTU 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.

PROZONE INTU Income Statement Analysis

• Operating income during the year rose 85.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 32.0% in FY23 as against 41.8% in FY22.
• Depreciation charges decreased by 9.2% and finance costs increased by 2.3% YoY, respectively.
• Other income grew by 162.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.6% in FY22 to 22.1% in FY23.

PROZONE INTU Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	934	1,732	85.5%
Other income	Rs m	219	575	162.8%
Total Revenues	Rs m	1,153	2,307	100.1%
Gross profit	Rs m	390	555	42.2%
Depreciation	Rs m	267	242	-9.2%
Interest	Rs m	401	411	2.3%
Profit before tax	Rs m	-59	477	NA
Tax	Rs m	-45	93	NA
Profit after tax	Rs m	-15	383	NA
Gross profit margin	%	41.8	32.0
Effective tax rate	%	75.0	19.6
Net profit margin	%	-1.6	22.1

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PROZONE INTU Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -11.5%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY22, a fall of 10.0%.
• Current assets fell 18% and stood at Rs 6 billion, while fixed assets rose 9% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 15 billion as against Rs 15 billion during FY22, thereby witnessing a fall of 4%.

PROZONE INTU Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,822	5,120	6.2
Current Liabilities	Rs m	3,844	3,404	-11.5
Long-term Debt	Rs m	4,309	3,877	-10.0
Total Liabilities	Rs m	15,420	14,877	-3.5
Current assets	Rs m	7,286	5,973	-18.0
Fixed Assets	Rs m	8,134	8,905	9.5
Total Assets	Rs m	15,420	14,877	-3.5

PROZONE INTU Cash Flow Statement Analysis

• PROZONE INTU's cash flow from operating activities (CFO) during FY23 stood at Rs 819 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 104 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -803 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 120 million from the Rs -116 million net cash flows seen during FY22.

PROZONE INTU 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	909	819	-9.9%
Cash Flow from Investing Activities	Rs m	-556	104	-
Cash Flow from Financing Activities	Rs m	-469	-803	-
Net Cash Flow	Rs m	-116	120	-

Current Valuations for PROZONE INTU

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.5, an improvement from the EPS of Rs -0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 21.5, stands at 8.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 7.2 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	6.1	11.3
TTM Earnings per share	Rs	-0.1	2.5
Diluted earnings per share	Rs	-0.1	2.5
Price to Cash Flow	x	12.9	7.2
TTM P/E ratio	x	-221.6	8.5
Price / Book Value ratio	x	1.1	0.9
Market Cap	Rs m	5,475	4,517
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PROZONE INTU

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY23, from 1.9x 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 2.2x during FY23, from 0.9x 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 7.5% during FY23, from -0.3% 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 9.9% during FY23, from 3.7% 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 5.3% during FY23, from 2.5% 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	1.9	1.8
Debtors’ Days	Days	1,145	280
Interest coverage	x	0.9	2.2
Debt to equity ratio	x	0.9	0.8
Return on assets	%	2.5	5.3
Return on equity	%	-0.3	7.5
Return on capital employed	%	3.7	9.9

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 21.4 to Rs 21.5, registering a gain of Rs 0.1 or around 0.6%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,101.6 (up 1.6%). Over the last one year it has moved down from 3,681.8 to 3,101.6, a loss of 580 points (down 15.8%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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