PRIME FOCUS 2020-21 Annual Report Analysis

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PRIME FOCUS 2020-21 Annual Report Analysis
Wed, 10 Nov

PRIME FOCUS 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.

PRIME FOCUS Income Statement Analysis

  • Operating income during the year fell 13.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 66.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.8% in FY21 as against 11.4% in FY20.
  • Depreciation charges increased by 10.6% and finance costs increased by 5.8% YoY, respectively.
  • Other income declined by 9.0% YoY.
  • Net profit for the year declined by 63.5% YoY.
  • Net profit margins during the year grew from 5.1% in FY20 to 2.1% in FY21.

PRIME FOCUS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 29,292 25,365 -13.4%
Other income Rs m 955 869 -9.0%
Total Revenues Rs m 30,247 26,233 -13.3%
Gross profit Rs m 3,329 5,534 66.3%
Depreciation Rs m 3,814 4,220 10.6%
Interest Rs m 2,429 2,569 5.8%
Profit before tax Rs m -1,959 -386 -80.3%
Tax Rs m -420 176 -141.8%
Profit after tax Rs m -1,539 -561 -63.5%
Gross profit margin % 11.4 21.8
Effective tax rate % 21.4 -45.5
Net profit margin % -5.1 -2.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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PRIME FOCUS Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 33 billion as compared to Rs 25 billion in FY20, thereby witnessing an increase of 29.8%.
  • Long-term debt down at Rs 7 billion as compared to Rs 11 billion during FY20, a fall of 35.2%.
  • Current assets rose 8% and stood at Rs 18 billion, while fixed assets rose 6% and stood at Rs 35 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 52 billion as against Rs 49 billion during FY20, thereby witnessing a growth of 7%.

PRIME FOCUS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 1,571 148 -90.6
 
Current Liabilities Rs m 25,061 32,539 29.8
Long-term Debt Rs m 10,739 6,955 -35.2
Total Liabilities Rs m 48,971 52,456 7.1
 
Current assets Rs m 16,359 17,725 8.3
Fixed Assets Rs m 32,612 34,731 6.5
Total Assets Rs m 48,971 52,456 7.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PRIME FOCUS Cash Flow Statement Analysis

  • PRIME FOCUS's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion, an improvement of 43% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs 2 billion net cash flows seen during FY20.

PRIME FOCUS 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 5,217 3,281 -37.1%
Cash Flow from Investing Activities Rs m -1,540 -1,036 -
Cash Flow from Financing Activities Rs m -2,013 -1,139 -
Net Cash Flow Rs m 1,664 1,106 -33.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PRIME FOCUS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.9, an improvement from the EPS of Rs -5.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 77.3, stands at -26.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 92.4 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.3 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 97.9 84.8
TTM Earnings per share Rs -5.1 -1.9
Diluted earnings per share Rs -5.1 -1.9
Price to Cash Flow x 10.2 6.3
TTM P/E ratio x -26.8 -26.9
Price / Book Value ratio x 11.0 92.4
Market Cap Rs m 23,132 23,137
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PRIME FOCUS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY21, from 0.7x 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 improved and stood at 0.8x during FY21, from 0.2x 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 -379.6% during FY21, from -98.0% 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 improved and stood at 30.7% during FY21, from 3.8% 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 improved and stood at 3.8% during FY21, from 1.8% 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 0.7 0.5
Debtors’ Days Days 7 3
Interest coverage x 0.2 0.8
Debt to equity ratio x 6.8 47.0
Return on assets % 1.8 3.8
Return on equity % -98.0 -379.6
Return on capital employed % 3.8 30.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how PRIME FOCUS has performed over the last 5 years, please visit here.

PRIME FOCUS Share Price Performance

Over the last one year, PRIME FOCUS share price has moved up from Rs 40.0 to Rs 77.3, registering a gain of Rs 37.3 or around 93.3%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 15,559.1 (up 0.0%). Over the last one year it has moved up from 9,804.1 to 15,559.1, a gain of 5,755 points (up 58.7%).

Overall, the S&P BSE SENSEX is up 41.7% over the year.

(To know more, check out historical annual results for PRIME FOCUS and quarterly results for PRIME FOCUS)

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