PRIME FOCUS 2022-23 Annual Report Analysis

Fri, 31 Mar

PRIME FOCUS 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.

PRIME FOCUS Income Statement Analysis

• Operating income during the year rose 37.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 48.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.7% in FY23 as against 18.2% in FY22.
• Depreciation charges increased by 12.0% and finance costs increased by 12.7% YoY, respectively.
• Other income grew by 204.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 5.1% in FY22 to 4.2% in FY23.

PRIME FOCUS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	33,859	46,443	37.2%
Other income	Rs m	919	2,795	204.3%
Total Revenues	Rs m	34,778	49,238	41.6%
Gross profit	Rs m	6,161	9,140	48.4%
Depreciation	Rs m	4,168	4,667	12.0%
Interest	Rs m	3,733	4,207	12.7%
Profit before tax	Rs m	-823	3,061	NA
Tax	Rs m	916	1,117	21.9%
Profit after tax	Rs m	-1,739	1,945	NA
Gross profit margin	%	18.2	19.7
Effective tax rate	%	-111.4	36.5
Net profit margin	%	-5.1	4.2

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PRIME FOCUS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 17 billion as compared to Rs 34 billion in FY22, thereby witnessing an decrease of -51.1%.
• Long-term debt stood at Rs 35 billion as compared to Rs 10 billion during FY22, a growth of 235.5%.
• Current assets rose 29% and stood at Rs 23 billion, while fixed assets rose 16% and stood at Rs 44 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 67 billion as against Rs 56 billion during FY22, thereby witnessing a growth of 20%.

PRIME FOCUS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-1,515	-2,652	NA
Current Liabilities	Rs m	33,807	16,535	-51.1
Long-term Debt	Rs m	10,348	34,720	235.5
Total Liabilities	Rs m	55,989	67,273	20.2
Current assets	Rs m	18,117	23,321	28.7
Fixed Assets	Rs m	37,872	43,953	16.1
Total Assets	Rs m	55,989	67,273	20.2

PRIME FOCUS Cash Flow Statement Analysis

• PRIME FOCUS's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 38.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion, an improvement of 515.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 165% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -842 million from the Rs -1 billion net cash flows seen during FY22.

PRIME FOCUS 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	1,833	2,540	38.6%
Cash Flow from Investing Activities	Rs m	-797	-4,905	-
Cash Flow from Financing Activities	Rs m	-2,324	1,522	-
Net Cash Flow	Rs m	-1,292	-842	-

Current Valuations for PRIME FOCUS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.5, an improvement from the EPS of Rs -5.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 81.4, stands at 12.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -9.2 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 3.7 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	113.0	155.0
TTM Earnings per share	Rs	-5.8	6.5
Diluted earnings per share	Rs	-5.8	6.5
Price to Cash Flow	x	11.2	3.7
TTM P/E ratio	x	-15.7	12.5
Price / Book Value ratio	x	-15.0	-9.2
Market Cap	Rs m	22,660	24,315
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PRIME FOCUS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY23, from 0.5x 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 1.7x during FY23, from 0.8x 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 declined and down at -73.3% during FY23, from 114.8% 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 declined and down at 22.7% during FY23, from 32.9% 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 9.1% during FY23, from 3.6% 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	0.5	1.4
Debtors’ Days	Days	5	5
Interest coverage	x	0.8	1.7
Debt to equity ratio	x	-6.8	-13.1
Return on assets	%	3.6	9.1
Return on equity	%	114.8	-73.3
Return on capital employed	%	32.9	22.7

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 down from Rs 91.1 to Rs 81.4, registering a loss of Rs 9.8 or around 10.7%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 12,978.0 (up 2.2%). Over the last one year it has moved down from 16,247.8 to 12,978.0, a loss of 3,270 points (down 20.1%).

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

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