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PIDILITE INDUSTRIES 2022-23 Annual Report Analysis

Mon, 17 Jul

PIDILITE INDUSTRIES 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.

PIDILITE INDUSTRIES Income Statement Analysis

• Operating income during the year rose 18.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.9% in FY23 as against 18.7% in FY22.
• Depreciation charges increased by 12.6% and finance costs increased by 13.2% YoY, respectively.
• Other income grew by 36.7% YoY.
• Net profit for the year grew by 6.8% YoY.
• Net profit margins during the year declined from 12.2% in FY22 to 10.9% in FY23.

PIDILITE INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	99,210	117,991	18.9%
Other income	Rs m	363	496	36.7%
Total Revenues	Rs m	99,573	118,487	19.0%
Gross profit	Rs m	18,592	19,910	7.1%
Depreciation	Rs m	2,396	2,697	12.6%
Interest	Rs m	421	476	13.2%
Profit before tax	Rs m	16,138	17,232	6.8%
Tax	Rs m	4,070	4,344	6.7%
Profit after tax	Rs m	12,068	12,889	6.8%
Gross profit margin	%	18.7	16.9
Effective tax rate	%	25.2	25.2
Net profit margin	%	12.2	10.9

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PIDILITE INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 24 billion as compared to Rs 23 billion in FY22, thereby witnessing an increase of 3.7%.
• Current assets rose 14% and stood at Rs 46 billion, while fixed assets rose 8% and stood at Rs 59 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 105 billion as against Rs 95 billion during FY22, thereby witnessing a growth of 11%.

PIDILITE INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	63,707	71,686	12.5
Current Liabilities	Rs m	23,250	24,106	3.7
Long-term Debt	Rs m	17	0	-100.0
Total Liabilities	Rs m	94,943	105,049	10.6
Current assets	Rs m	40,156	45,615	13.6
Fixed Assets	Rs m	54,787	59,434	8.5
Total Assets	Rs m	94,943	105,049	10.6

PIDILITE INDUSTRIES Cash Flow Statement Analysis

• PIDILITE INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 16 billion, an improvement of 63.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -9 billion, an improvement of 61.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 billion from the Rs 3 billion net cash flows seen during FY22.

PIDILITE INDUSTRIES 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	9,554	15,576	63.0%
Cash Flow from Investing Activities	Rs m	-5,581	-8,990	-
Cash Flow from Financing Activities	Rs m	-4,680	-6,564	-
Net Cash Flow	Rs m	2,565	2,581	0.6%

Current Valuations for PIDILITE INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.4, an improvement from the EPS of Rs 23.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,639.5, stands at 104.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.7 times, while the price to sales ratio stands at 11.4 times.
• The company's price to cash flow (P/CF) ratio stood at 80.0 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	195.2	232.1
TTM Earnings per share	Rs	23.7	25.4
Diluted earnings per share	Rs	23.7	25.3
Price to Cash Flow	x	86.3	80.0
TTM P/E ratio	x	104.5	104.7
Price / Book Value ratio	x	18.0	17.4
Market Cap	Rs m	1,148,783	1,246,755
Dividends per share (Unadj.)	Rs	10.0	11.0

Ratio Analysis for PIDILITE INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY23, from 1.7x 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 deteriorated and stood at 37.2x during FY23, from 39.4x 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 18.0% during FY23, from 18.9% 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 declined and down at 24.7% during FY23, from 26.0% 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 declined and down at 12.7% during FY23, from 13.2% 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	1.7	1.9
Debtors’ Days	Days	5	5
Interest coverage	x	39.4	37.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.2	12.7
Return on equity	%	18.9	18.0
Return on capital employed	%	26.0	24.7

To see how PIDILITE INDUSTRIES has performed over the last 5 years, please visit here.

PIDILITE INDUSTRIES Share Price Performance

Over the last one year, PIDILITE INDUSTRIES share price has moved up from Rs 2,307.9 to Rs 2,639.5, registering a gain of Rs 331.6 or around 14.4%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for PIDILITE INDUSTRIES and quarterly results for PIDILITE INDUSTRIES)