Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

PI INDUSTRIES 2018-19 Annual Report Analysis
Sun, 31 Mar

PI INDUSTRIES has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

PI INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 26.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 15.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.0% in FY19 as against 22.1% in FY18.
  • Depreciation charges increased by 12.0% and finance costs decreased by 2.7% YoY, respectively.
  • Other income grew by 13.6% YoY.
  • Net profit for the year grew by 11.6% YoY.
  • Net profit margins during the year declined from 16.4% in FY18 to 14.4% in FY19.

PI INDUSTRIES Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 22,455 28,409 26.5%
Other income Rs m 602 684 13.6%
Total Revenues Rs m 23,057 29,093 26.2%
Gross profit Rs m 4,955 5,696 15.0%
Depreciation Rs m 830 930 12.0%
Interest Rs m 73 71 -2.7%
Profit before tax Rs m 4,654 5,379 15.6%
Tax Rs m 979 1,277 30.4%
Profit after tax Rs m 3,675 4,102 11.6%
Gross profit margin % 22.1 20.0
Effective tax rate % 21.0 23.7
Net profit margin % 16.4 14.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

PI INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 15 billion as compared to Rs 18 billion in FY18, thereby witnessing an decrease of -15.1%.
  • Long-term debt down at Rs 99 million as compared to Rs 463 million during FY18, a fall of 78.6%.
  • Current assets fell 9% and stood at Rs 24 billion, while fixed assets rose 27% and stood at Rs 14 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 39 billion as against Rs 38 billion during FY18, thereby witnessing a growth of 2%.

PI INDUSTRIES Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 19,146 22,781 19.0
 
Current Liabilities Rs m 18,078 15,341 -15.1
Long-term Debt Rs m 463 99 -78.6
Total Liabilities Rs m 37,938 38,633 1.8
 
Current assets Rs m 26,559 24,135 -9.1
Fixed Assets Rs m 11,379 14,498 27.4
Total Assets Rs m 37,938 38,633 1.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PI INDUSTRIES Cash Flow Statement Analysis

  • PI INDUSTRIES's cash flow from operating activities (CFO) during FY19 stood at Rs 4 billion, an improvement of 22.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion, an improvement of 78.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -559 million from the Rs 328 million net cash flows seen during FY18.

PI INDUSTRIES Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 3,194 3,908 22.4%
Cash Flow from Investing Activities Rs m -1,805 -3,216 -
Cash Flow from Financing Activities Rs m -1,061 -1,251 -
Net Cash Flow Rs m 328 -559 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PI INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.7, an improvement from the EPS of Rs 26.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,031.3, stands at 38.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 5.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 23.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 162.8 205.8
TTM Earnings per share Rs 26.6 29.7
Diluted earnings per share Rs 24.2 27.0
Price to Cash Flow x 29.9 23.7
TTM P/E ratio x 36.8 38.4
Price / Book Value ratio x 6.2 5.2
Market Cap Rs m 117,852 119,383
Dividends per share (Unadj.) Rs 4.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PI INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.6x during FY19, from 1.5x during FY18. 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 76.8x during FY19, from 64.8x during FY18. 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 FY19, from 19.2% during FY19. 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 23.8% during FY19, from 24.1% during FY18. 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 10.8% during FY19, from 9.9% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.5 1.6
Debtors’ Days Days 86 85
Interest coverage x 64.8 76.8
Debt to equity ratio x 0.0 0.0
Return on assets % 9.9 10.8
Return on equity % 19.2 18.0
Return on capital employed % 24.1 23.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

PI INDUSTRIES Share Price Performance

Over the last one year, PI INDUSTRIES share price has moved up from Rs 887.9 to Rs 1,031.3, registering a gain of Rs 143.4 or around 16.2%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of PI INDUSTRIES?

PI INDUSTRIES currently trades at Rs 3,868.3 per share. You can check out the latest share price performance of PI INDUSTRIES here...

What was the revenue of PI INDUSTRIES in FY19? How does it compare to earlier years?

The revenues of PI INDUSTRIES stood at Rs 29,093 m in FY19, which was up 26.2% compared to Rs 23,057 m reported in FY18.

PI INDUSTRIES' revenue has grown from Rs 20,457 m in FY15 to Rs 29,093 m in FY19.

Over the past 5 years, the revenue of PI INDUSTRIES has grown at a CAGR of 9.2%.

What was the net profit of PI INDUSTRIES in FY19? How does it compare to earlier years?

The net profit of PI INDUSTRIES stood at Rs 4,102 m in FY19, which was up 11.6% compared to Rs 3,675 m reported in FY18.

This compares to a net profit of Rs 4,595 m in FY17 and a net profit of Rs 3,116 m in FY16.

Over the past 5 years, PI INDUSTRIES net profit has grown at a CAGR of 13.6%.

What does the cash flow statement of PI INDUSTRIES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of PI INDUSTRIES reveals:

  • Cash flow from operations increased in FY19 and stood at Rs 3,908 m as compared to Rs 3,194 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -3,216 m as compared to Rs -1,805 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -1,251 m as compared to Rs -1,061 m in FY18.

Here's the cash flow statement of PI INDUSTRIES for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations1,8413,6683,3883,1943,908
From Investments-1,463-3,034-2,351-1,805-3,216
From Financial Activity-526-476-534-1,061-1,251
Net Cashflow-146159503328-559

What does the Key Ratio analysis of PI INDUSTRIES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of PI INDUSTRIES reveals:

  • Operating profit margins witnessed a fall and stood at 20.0% in FY19 as against 22.1% in FY18.
  • Net profit margins declined from 16.4% in FY18 to 14.4% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of PI INDUSTRIES for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)18.721.725.622.120.0
Net Profit Margin (%)12.315.621.216.414.4
Debt to Equity Ratio (x)0.00.10.10.00.0

Read: Latest Annual Report Analysis of PI INDUSTRIES

Equitymaster requests your view! Post a comment on "PI INDUSTRIES 2018-19 Annual Report Analysis". Click here!