PI INDUSTRIES 2018-19 Annual Report Analysis

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PI INDUSTRIES 2018-19 Annual Report Analysis
Mon, 19 Aug

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 24.8% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 16.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.3% in FY19 as against 21.7% in FY18.
  • Depreciation charges increased by 12.1% and finance costs decreased by 6.0% YoY, respectively.
  • Other income declined by 1.2% YoY.
  • Net profit for the year grew by 11.6% YoY.
  • Net profit margins during the year declined from 15.7% in FY18 to 14.1% in FY19.

PI INDUSTRIES Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 22,771 28,409 24.8%
Other income Rs m 603 595 -1.2%
Total Revenues Rs m 23,373 29,004 24.1%
Gross profit Rs m 4,934 5,764 16.8%
Depreciation Rs m 830 930 12.1%
Interest Rs m 53 50 -6.0%
Profit before tax Rs m 4,653 5,379 15.6%
Tax Rs m 979 1,277 30.5%
Profit after tax Rs m 3,676 4,102 11.6%
Gross profit margin % 21.7 20.3
Effective tax rate % 21.0 23.7
Net profit margin % 15.7 14.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



PI INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 8 billion as compared to Rs 6 billion in FY18, thereby witnessing an increase of 32.2%.
  • Long-term debt down at Rs 99 million as compared to Rs 463 million during FY18, a fall of 78.6%.
  • Current assets rose 16% and stood at Rs 17 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 32 billion as against Rs 26 billion during FY18, thereby witnessing a growth of 20%.

PI INDUSTRIES Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 19,248 22,854 18.7
 
Current Liabilities Rs m 6,136 8,115 32.2
Long-term Debt Rs m 463 99 -78.6
Total Liabilities Rs m 26,264 31,548 20.1
 
Current assets Rs m 14,618 16,909 15.7
Fixed Assets Rs m 10,882 13,787 26.7
Total Assets Rs m 26,264 31,548 20.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 329 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 -1,060 -1,251 -
Net Cash Flow Rs m 329 -559 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 26.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,125.5, stands at 36.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 4.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 30.5 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 165.1 205.8
TTM Earnings per share Rs 26.7 29.7
Diluted earnings per share Rs 26.9 30.0
Price to Cash Flow x 34.5 30.5
TTM P/E ratio x 36.4 36.0
Price / Book Value ratio x 6.1 5.2
Market Cap Rs m 155,211 153,714
Dividends per share (Unadj.) Rs 4.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for PI INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY19, from 2.4x 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 108.6x during FY19, from 88.5x 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 17.9% during FY19, from 19.1% 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 23.7% during FY19, from 23.9% 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 declined and down at 13.2% during FY19, from 14.2% 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 2.4 2.1
Debtors’ Days Days 84 85
Interest coverage x 88.5 108.6
Debt to equity ratio x 0.0 0.0
Return on assets % 14.2 13.2
Return on equity % 19.1 17.9
Return on capital employed % 23.9 23.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 780.0 to Rs 1,125.5, registering a gain of Rs 345.5 or around 44.3%.

Overall, the S&P BSE SENSEX is down 0.2% over the year.

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

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