PI INDUSTRIES 2021-22 Annual Report Analysis

Sun, 21 Aug

PI INDUSTRIES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

PI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 15.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.7% in FY22 as against 22.2% in FY21.
• Depreciation charges increased by 15.4% and finance costs decreased by 41.2% YoY, respectively.
• Other income declined by 18.8% YoY.
• Net profit for the year grew by 14.5% YoY.
• Net profit margins during the year declined from 16.0% in FY21 to 15.9% in FY22.

PI INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	45,770	52,995	15.8%
Other income	Rs m	1,249	1,014	-18.8%
Total Revenues	Rs m	47,019	54,009	14.9%
Gross profit	Rs m	10,180	11,496	12.9%
Depreciation	Rs m	1,748	2,018	15.4%
Interest	Rs m	340	200	-41.2%
Profit before tax	Rs m	9,341	10,292	10.2%
Tax	Rs m	2,002	1,890	-5.6%
Profit after tax	Rs m	7,339	8,402	14.5%
Gross profit margin	%	22.2	21.7
Effective tax rate	%	21.4	18.4
Net profit margin	%	16.0	15.9

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PI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 20 billion as compared to Rs 17 billion in FY21, thereby witnessing an increase of 15.3%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY21, a fall of 34.0%.
• Current assets rose 13% and stood at Rs 56 billion, while fixed assets rose 10% and stood at Rs 34 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 90 billion as against Rs 80 billion during FY21, thereby witnessing a growth of 12%.

PI INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	53,475	61,237	14.5
Current Liabilities	Rs m	17,375	20,041	15.3
Long-term Debt	Rs m	2,574	1,699	-34.0
Total Liabilities	Rs m	80,317	89,973	12.0
Current assets	Rs m	49,736	56,198	13.0
Fixed Assets	Rs m	30,581	33,775	10.4
Total Assets	Rs m	80,317	89,973	12.0

PI INDUSTRIES Cash Flow Statement Analysis

• PI INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 2 billion from the Rs -150 million net cash flows seen during FY21.

PI INDUSTRIES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	7,249	5,287	-27.1%
Cash Flow from Investing Activities	Rs m	-24,303	-1,104	-
Cash Flow from Financing Activities	Rs m	16,904	-1,773	-
Net Cash Flow	Rs m	-150	2,410	-

Current Valuations for PI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 55.4, an improvement from the EPS of Rs 48.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,321.4, stands at 55.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.2 times, while the price to sales ratio stands at 9.5 times.
• The company's price to cash flow (P/CF) ratio stood at 41.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	301.7	349.3
TTM Earnings per share	Rs	48.4	55.4
Diluted earnings per share	Rs	48.4	55.4
Price to Cash Flow	x	37.6	41.8
TTM P/E ratio	x	46.6	55.1
Price / Book Value ratio	x	5.2	7.1
Market Cap	Rs m	280,603	435,055
Dividends per share (Unadj.)	Rs	5.0	6.0

Ratio Analysis for PI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.8x during FY22, from 2.9x during FY21. 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 52.5x during FY22, from 28.5x during FY21. 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 FY22, from 13.7% during FY22. 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 16.7% during FY22, from 17.3% during FY21. 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 9.6% during FY22, from 9.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.9	2.8
Debtors’ Days	Days	56	60
Interest coverage	x	28.5	52.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.6	9.6
Return on equity	%	13.7	13.7
Return on capital employed	%	17.3	16.7

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 3,183.7 to Rs 3,321.4, registering a gain of Rs 137.7 or around 4.3%.

Overall, the S&P BSE SENSEX is up 7.2% 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