PARAS DEFENCE & SPACE TECH 2022-23 Annual Report Analysis

Wed, 13 Sep

PARAS DEFENCE & SPACE TECH 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.

PARAS DEFENCE & SPACE TECH Income Statement Analysis

• Operating income during the year rose 21.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.9% in FY23 as against 28.7% in FY22.
• Depreciation charges increased by 8.1% and finance costs decreased by 7.9% YoY, respectively.
• Other income grew by 180.2% YoY.
• Net profit for the year grew by 32.7% YoY.
• Net profit margins during the year grew from 14.8% in FY22 to 16.2% in FY23.

PARAS DEFENCE & SPACE TECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,826	2,224	21.8%
Other income	Rs m	30	83	180.2%
Total Revenues	Rs m	1,855	2,308	24.4%
Gross profit	Rs m	524	575	9.7%
Depreciation	Rs m	104	113	8.1%
Interest	Rs m	84	78	-7.9%
Profit before tax	Rs m	366	468	28.1%
Tax	Rs m	95	109	14.8%
Profit after tax	Rs m	271	359	32.7%
Gross profit margin	%	28.7	25.9
Effective tax rate	%	26.0	23.3
Net profit margin	%	14.8	16.2

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PARAS DEFENCE & SPACE TECH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 830 million as compared to Rs 565 million in FY22, thereby witnessing an increase of 46.9%.
• Long-term debt stood at Rs 9 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 7% and stood at Rs 3 billion, while fixed assets rose 28% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 14%.

PARAS DEFENCE & SPACE TECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,782	4,133	9.3
Current Liabilities	Rs m	565	830	46.9
Long-term Debt	Rs m	0	9	0.0
Total Liabilities	Rs m	4,577	5,205	13.7
Current assets	Rs m	2,959	3,155	6.6
Fixed Assets	Rs m	1,603	2,050	27.9
Total Assets	Rs m	4,577	5,205	13.7

PARAS DEFENCE & SPACE TECH Cash Flow Statement Analysis

• PARAS DEFENCE & SPACE TECH's cash flow from operating activities (CFO) during FY23 stood at Rs 457 million, an improvement of 297.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 96 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -407 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 149 million from the Rs -25 million net cash flows seen during FY22.

PARAS DEFENCE & SPACE TECH 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	115	457	297.2%
Cash Flow from Investing Activities	Rs m	-771	96	-
Cash Flow from Financing Activities	Rs m	631	-407	-
Net Cash Flow	Rs m	-25	149	-

Current Valuations for PARAS DEFENCE & SPACE TECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.2, an improvement from the EPS of Rs 6.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 751.4, stands at 83.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while the price to sales ratio stands at 13.2 times.
• The company's price to cash flow (P/CF) ratio stood at 52.0 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	46.8	57.0
TTM Earnings per share	Rs	6.9	9.2
Diluted earnings per share	Rs	6.9	9.2
Price to Cash Flow	x	65.1	52.0
TTM P/E ratio	x	90.1	83.4
Price / Book Value ratio	x	8.9	5.9
Market Cap	Rs m	33,697	24,540
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PARAS DEFENCE & SPACE TECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.8x during FY23, from 5.2x 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 7.0x during FY23, from 5.3x 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 8.7% during FY23, from 7.2% 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 13.2% during FY23, from 11.9% 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 8.4% during FY23, from 7.8% 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	5.2	3.8
Debtors’ Days	Days	2,459	2,467
Interest coverage	x	5.3	7.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.8	8.4
Return on equity	%	7.2	8.7
Return on capital employed	%	11.9	13.2

To see how PARAS DEFENCE & SPACE TECH has performed over the last 5 years, please visit here.

PARAS DEFENCE & SPACE TECH Share Price Performance

Over the last one year, PARAS DEFENCE & SPACE TECH share price has moved down from Rs 751.6 to Rs 751.4, registering a loss of Rs 0.2 or around 0.0%.

Overall, the S&P BSE SENSEX is up 11.9% over the year.

(To know more, check out historical annual results for PARAS DEFENCE & SPACE TECH and quarterly results for PARAS DEFENCE & SPACE TECH)