PHOENIX MILL 2022-23 Annual Report Analysis

Fri, 31 Mar

PHOENIX MILL 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.

PHOENIX MILL Income Statement Analysis

• Operating income during the year rose 77.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 189.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 80.5% in FY23 as against 49.5% in FY22.
• Depreciation charges increased by 22.6% and finance costs increased by 15.9% YoY, respectively.
• Other income grew by 56.2% YoY.
• Net profit for the year grew by 493.8% YoY.
• Net profit margins during the year grew from 16.7% in FY22 to 55.8% in FY23.

PHOENIX MILL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,835	26,383	77.8%
Other income	Rs m	744	1,163	56.2%
Total Revenues	Rs m	15,579	27,546	76.8%
Gross profit	Rs m	7,342	21,247	189.4%
Depreciation	Rs m	1,859	2,278	22.6%
Interest	Rs m	2,948	3,418	15.9%
Profit before tax	Rs m	3,280	16,714	409.5%
Tax	Rs m	801	1,989	148.5%
Profit after tax	Rs m	2,480	14,725	493.8%
Gross profit margin	%	49.5	80.5
Effective tax rate	%	24.4	11.9
Net profit margin	%	16.7	55.8

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PHOENIX MILL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 26 billion as compared to Rs 20 billion in FY22, thereby witnessing an increase of 26.3%.
• Long-term debt stood at Rs 33 billion as compared to Rs 31 billion during FY22, a growth of 5.4%.
• Current assets fell 9% and stood at Rs 35 billion, while fixed assets rose 34% and stood at Rs 140 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 174 billion as against Rs 142 billion during FY22, thereby witnessing a growth of 23%.

PHOENIX MILL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	65,618	83,555	27.3
Current Liabilities	Rs m	20,415	25,785	26.3
Long-term Debt	Rs m	31,407	33,102	5.4
Total Liabilities	Rs m	142,090	174,257	22.6
Current assets	Rs m	38,177	34,665	-9.2
Fixed Assets	Rs m	103,913	139,592	34.3
Total Assets	Rs m	142,090	174,257	22.6

PHOENIX MILL Cash Flow Statement Analysis

• PHOENIX MILL's cash flow from operating activities (CFO) during FY23 stood at Rs 14 billion, an improvement of 73.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -15 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -352 million from the Rs 2 billion net cash flows seen during FY22.

PHOENIX MILL 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	7,806	13,561	73.7%
Cash Flow from Investing Activities	Rs m	-28,412	-15,360	-
Cash Flow from Financing Activities	Rs m	22,276	1,368	-93.9%
Net Cash Flow	Rs m	1,670	-352	-

Current Valuations for PHOENIX MILL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 82.4, an improvement from the EPS of Rs 13.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,301.1, stands at 15.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 8.8 times.
• The company's price to cash flow (P/CF) ratio stood at 13.5 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	83.1	147.7
TTM Earnings per share	Rs	13.9	82.4
Diluted earnings per share	Rs	13.9	82.4
Price to Cash Flow	x	45.3	13.5
TTM P/E ratio	x	79.2	15.8
Price / Book Value ratio	x	2.5	2.8
Market Cap	Rs m	167,090	229,937
Dividends per share (Unadj.)	Rs	2.4	5.0

Ratio Analysis for PHOENIX MILL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.9x 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 5.9x during FY23, from 2.1x 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 17.6% during FY23, from 3.8% 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 improved and stood at 17.3% during FY23, from 6.4% 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 10.4% during FY23, from 3.8% 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	1.9	1.3
Debtors’ Days	Days	689	330
Interest coverage	x	2.1	5.9
Debt to equity ratio	x	0.5	0.4
Return on assets	%	3.8	10.4
Return on equity	%	3.8	17.6
Return on capital employed	%	6.4	17.3

To see how PHOENIX MILL has performed over the last 5 years, please visit here.

PHOENIX MILL Share Price Performance

Over the last one year, PHOENIX MILL share price has moved up from Rs 1,099.4 to Rs 1,301.1, registering a gain of Rs 201.8 or around 18.4%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,101.6 (up 1.6%). Over the last one year it has moved down from 3,681.8 to 3,101.6, a loss of 580 points (down 15.8%).

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

(To know more, check out historical annual results for PHOENIX MILL and quarterly results for PHOENIX MILL)