PECOS HOTELS AND PUBS 2022-23 Annual Report Analysis

Mon, 26 Jun

PECOS HOTELS AND PUBS 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.

PECOS HOTELS AND PUBS Income Statement Analysis

• Operating income during the year rose 179.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1303.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.2% in FY23 as against 3.4% in FY22.
• Depreciation charges increased by 13.3% and finance costs increased by 109.1% YoY, respectively.
• Other income grew by 438.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 4.4% in FY22 to 13.2% in FY23.

PECOS HOTELS AND PUBS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	32	88	179.1%
Other income	Rs m	0	1	438.9%
Total Revenues	Rs m	32	89	180.5%
Gross profit	Rs m	1	15	1,303.7%
Depreciation	Rs m	2	3	13.3%
Interest	Rs m	0	1	109.1%
Profit before tax	Rs m	-1	13	NA
Tax	Rs m	0	1	1,487.5%
Profit after tax	Rs m	-1	12	NA
Gross profit margin	%	3.4	17.2
Effective tax rate	%	-6.1	9.9
Net profit margin	%	-4.4	13.2

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PECOS HOTELS AND PUBS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 million as compared to Rs 4 million in FY22, thereby witnessing an increase of 43.0%.
• Current assets rose 115% and stood at Rs 24 million, while fixed assets rose 1% and stood at Rs 28 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 52 million as against Rs 38 million during FY22, thereby witnessing a growth of 35%.

PECOS HOTELS AND PUBS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	36	48	32.2
Current Liabilities	Rs m	4	5	43.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	38	52	34.6
Current assets	Rs m	11	24	114.7
Fixed Assets	Rs m	27	28	1.4
Total Assets	Rs m	38	52	34.6

PECOS HOTELS AND PUBS Cash Flow Statement Analysis

• PECOS HOTELS AND PUBS's cash flow from operating activities (CFO) during FY23 stood at Rs 15 million, an improvement of 439.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 0 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 13 million from the Rs 3 million net cash flows seen during FY22.

PECOS HOTELS AND PUBS 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	3	15	439.4%
Cash Flow from Investing Activities	Rs m	0	-2	-
Cash Flow from Financing Activities	Rs m	0	0	0.0%
Net Cash Flow	Rs m	3	13	315.1%

Current Valuations for PECOS HOTELS AND PUBS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.9, an improvement from the EPS of Rs -1.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 83.5, stands at 9.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 7.8 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	24.1	67.3
TTM Earnings per share	Rs	-1.1	8.9
Diluted earnings per share	Rs	-1.1	8.9
Price to Cash Flow	x	44.5	7.8
TTM P/E ratio	x	-27.3	9.4
Price / Book Value ratio	x	1.0	2.3
Market Cap	Rs m	38	110
Dividends per share (Unadj.)	Rs	0.0	3.0

Ratio Analysis for PECOS HOTELS AND PUBS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.5x during FY23, from 3.0x 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 19.7x during FY23, from -3.0x 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 24.3% during FY23, from -3.9% 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 28.4% during FY23, from -2.7% 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 23.8% during FY23, from -2.8% 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	3.0	4.5
Debtors’ Days	Days	2,376	850
Interest coverage	x	-3.0	19.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-2.8	23.8
Return on equity	%	-3.9	24.3
Return on capital employed	%	-2.7	28.4

To see how PECOS HOTELS AND PUBS has performed over the last 5 years, please visit here.

PECOS HOTELS AND PUBS Share Price Performance

Over the last one year, PECOS HOTELS AND PUBS share price has moved up from Rs 0.0 to Rs 83.5, registering a gain of Rs 83.5 or around 0.0%.

Overall, the S&P BSE SENSEX is up 21.5% over the year.

(To know more, check out historical annual results for PECOS HOTELS AND PUBS and quarterly results for PECOS HOTELS AND PUBS)