PNB GILTS 2022-23 Annual Report Analysis

Wed, 16 Aug

PNB GILTS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during the year 2022-23.

PNB GILTS Income Statement Analysis

• Interest income during the year rose 17.0% on a year-on-year (YoY) basis.
• Interest expenses were up by 90.3% YoY during the same period.
• Operating expenses increased by 3.1% YoY during the year.
• The company's net interest income (NII) decreased by 52.8% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 1.4% in FY23 as against 3.5% in FY22.
• Other income declined by 48.4% YoY during the year.
• Net profit for the year declined by 146.6% YoY.
• Net profit margins during the year declined to -6.3% in FY23 from 15.8% in FY22.

PNB GILTS Income Statement – 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Interest Income	Rs m	10,507	12,298	17.0%
Other Income	Rs m	12	6	-48.4%
Interest Expense	Rs m	5,126	9,756	90.3%
Net Interest Income	Rs m	5,382	2,542	-52.8%
Operating Expense	Rs m	3,360	3,464	3.1%
Pre-provision Operating Profit	Rs m	2,034	-916	-145.0%
Provisions & Contingencies	Rs m	566	448	-20.7%
Profit before tax	Rs m	2,102	-851	-140.5%
Tax	Rs m	444	-78	-117.7%
Profit after tax	Rs m	1,657	-772	-146.6%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	3.5	1.4
Net profit margin	%	15.8	-6.3

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PNB GILTS Balance Sheet Analysis

• The company's deposits during FY23 stood at Rs 0 m as compared to Rs 0 m in FY22, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 0 m as compared to Rs 0 m during FY22, a rise of 0.0%.
• Cost of deposits for PNB GILTS rose 41.9% and stood at 19283.8%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 187.0 bn during the year from Rs 154.0 bn in FY22.
• Borrowing stood at Rs 192.4 bn, a growth of 32.4% as compared to previous year.
• Overall, the total assets and liabilities for FY23 stood at Rs 214.9 bn as against Rs 167.5 bn during FY22, thereby witnessing a rise of 28.3%.

PNB GILTS Balance Sheet – as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	14,273	12,600	-11.7%
Advances	Rs m	0	0	0.0%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	13594.1	19283.8
Investments	Rs m	154,042	186,979	21.4%
Borrowings	Rs m	145,303	192,384	32.4%
Total Assets	Rs m	167,491	214,872	28.3%

Current Valuations for PNB GILTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.3, a decline from the EPS of Rs 9.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 62.7, stands at -15.6 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 0.9 times, while the price to income ratio stands at 1.0 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Income per share (Unadj.)	Rs	58.4	68.3
Earnings per share (Unadj.)	Rs	9.2	-4.3
Diluted earnings per share	Rs	9.2	-4.3
Avg P/E ratio	Rs	7.8	-15.6
Avg P/ABV ratio	Rs	0.9	0.9
Avg Market Cap	Rs	12,889	12,079
Dividends per share (Unadj.)	Rs	5.00	0.00

Ratio Analysis for PNB GILTS

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 0.0x during FY23, from 0.0x during FY22. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio increased and stood at 15.27x during FY23, from 10.18x during FY22. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): PNB GILTS's capital adequacy ratio (CAR) was at 0.0% as on 31 March 2023 as compared to 66.4% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company deteriorated and stood at -6.1% during FY23, from 11.6% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company deteriorated and stood at -0.36% during FY23, from 0.99% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company deteriorated and stood at 4.89% during FY23, from 5.33% during FY22. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. PNB GILTS's gross NPA ratio stood at 0.0% as of 31 March 2023 compared to 0.0% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of PNB GILTS was 0.0% in financial year 2023. This compared with 0.0% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Credit/Deposit Ratio	x	0.0	0.0
Debt to Equity Ratio	x	10.2	15.3
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	66.4	0.0
Return on Equity	%	11.6	-6.1
Return on Assets	%	1.0	-0.4
Return on Capital Employed	%	5.3	4.9
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	0.0	0.0
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how PNB GILTS has performed over the last 5 years, please visit here.

PNB GILTS Share Price Performance

Over the last one year, PNB GILTS share price has moved down from Rs 71.9 to Rs 62.7, registering a loss of Rs 9.2 or around 12.7%.

Overall, the S&P BSE SENSEX is up 10.5% over the year.

(To know more, you can check out historical annual results for PNB GILTS here and quarterly results for PNB GILTS here)