PI INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

PI INDUSTRIES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

PI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 36.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.2% in FY21 as against 21.4% in FY20.
• Depreciation charges increased by 27.9% and finance costs increased by 78.9% YoY, respectively.
• Other income grew by 155.4% YoY.
• Net profit for the year grew by 61.0% YoY.
• Net profit margins during the year grew from 13.5% in FY20 to 16.0% in FY21.

PI INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	33,665	45,770	36.0%
Other income	Rs m	489	1,249	155.4%
Total Revenues	Rs m	34,154	47,019	37.7%
Gross profit	Rs m	7,198	10,180	41.4%
Depreciation	Rs m	1,367	1,748	27.9%
Interest	Rs m	190	340	78.9%
Profit before tax	Rs m	6,130	9,341	52.4%
Tax	Rs m	1,572	2,002	27.4%
Profit after tax	Rs m	4,558	7,339	61.0%
Gross profit margin	%	21.4	22.2
Effective tax rate	%	25.6	21.4
Net profit margin	%	13.5	16.0

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PI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 22 billion as compared to Rs 19 billion in FY20, thereby witnessing an increase of 16.3%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY20, a fall of 35.6%.
• Current assets rose 93% and stood at Rs 55 billion, while fixed assets rose 13% and stood at Rs 25 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 80 billion as against Rs 50 billion during FY20, thereby witnessing a growth of 58%.

PI INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	26,236	53,475	103.8
Current Liabilities	Rs m	19,173	22,303	16.3
Long-term Debt	Rs m	3,994	2,574	-35.6
Total Liabilities	Rs m	50,416	79,752	58.2
Current assets	Rs m	28,401	54,796	92.9
Fixed Assets	Rs m	22,015	24,956	13.4
Total Assets	Rs m	50,416	79,752	58.2

PI INDUSTRIES Cash Flow Statement Analysis

• PI INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 7 billion, an improvement of 3.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -24 billion, an improvement of 146.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 17 billion, an improvement of 383% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -150 million from the Rs 632 million net cash flows seen during FY20.

PI INDUSTRIES Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	6,981	7,250	3.9%
Cash Flow from Investing Activities	Rs m	-9,849	-24,304	-
Cash Flow from Financing Activities	Rs m	3,500	16,904	383.0%
Net Cash Flow	Rs m	632	-150	-

Current Valuations for PI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.4, an improvement from the EPS of Rs 33.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,254.6, stands at 46.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.4 times, while the price to sales ratio stands at 7.5 times.
• The company's price to cash flow (P/CF) ratio stood at 30.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	243.8	301.7
TTM Earnings per share	Rs	33.0	48.4
Diluted earnings per share	Rs	30.0	48.4
Price to Cash Flow	x	29.9	30.9
TTM P/E ratio	x	38.9	46.6
Price / Book Value ratio	x	6.8	5.2
Market Cap	Rs m	179,520	280,603
Dividends per share (Unadj.)	Rs	4.0	5.0

Ratio Analysis for PI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY21, from 1.5x during FY20. 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 28.5x during FY21, from 33.3x during FY20. 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 13.7% during FY21, from 17.4% during FY21. 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 17.3% during FY21, from 20.9% during FY20. 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 9.6% during FY21, from 9.4% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.5	2.5
Debtors’ Days	Days	70	56
Interest coverage	x	33.3	28.5
Debt to equity ratio	x	0.2	0.0
Return on assets	%	9.4	9.6
Return on equity	%	17.4	13.7
Return on capital employed	%	20.9	17.3

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 1,169.6 to Rs 2,254.6, registering a gain of Rs 1,085.0 or around 92.8%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of PI INDUSTRIES