PI INDUSTRIES 2022-23 Annual Report Analysis

Sun, 6 Aug

PI 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.

PI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 22.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.9% in FY23 as against 21.7% in FY22.
• Depreciation charges increased by 12.2% and finance costs increased by 144.1% YoY, respectively.
• Other income grew by 56.8% YoY.
• Net profit for the year grew by 45.7% YoY.
• Net profit margins during the year grew from 15.9% in FY22 to 18.9% in FY23.

PI INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	52,995	64,920	22.5%
Other income	Rs m	1,014	1,590	56.8%
Total Revenues	Rs m	54,009	66,510	23.1%
Gross profit	Rs m	11,493	15,511	35.0%
Depreciation	Rs m	2,018	2,265	12.2%
Interest	Rs m	161	393	144.1%
Profit before tax	Rs m	10,328	14,443	39.8%
Tax	Rs m	1,890	2,148	13.7%
Profit after tax	Rs m	8,438	12,295	45.7%
Gross profit margin	%	21.7	23.9
Effective tax rate	%	18.3	14.9
Net profit margin	%	15.9	18.9

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PI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 19 billion as compared to Rs 20 billion in FY22, thereby witnessing an decrease of -4.8%.
• Current assets rose 14% and stood at Rs 64 billion, while fixed assets rose 5% and stood at Rs 35 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 99 billion as against Rs 90 billion during FY22, thereby witnessing a growth of 10%.

PI INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	61,237	72,011	17.6
Current Liabilities	Rs m	20,041	19,077	-4.8
Long-term Debt	Rs m	1,699	0	-100.0
Total Liabilities	Rs m	89,973	99,310	10.4
Current assets	Rs m	56,198	63,882	13.7
Fixed Assets	Rs m	33,775	35,428	4.9
Total Assets	Rs m	89,973	99,310	10.4

PI INDUSTRIES Cash Flow Statement Analysis

• PI INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 15 billion, an improvement of 184.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion, an improvement of 349.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 5 billion from the Rs 2 billion net cash flows seen during FY22.

PI 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	5,287	15,014	184.0%
Cash Flow from Investing Activities	Rs m	-1,104	-4,962	-
Cash Flow from Financing Activities	Rs m	-1,773	-4,831	-
Net Cash Flow	Rs m	2,410	5,221	116.6%

Current Valuations for PI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 81.0, an improvement from the EPS of Rs 55.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,699.8, stands at 45.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.8 times, while the price to sales ratio stands at 8.6 times.
• The company's price to cash flow (P/CF) ratio stood at 31.6 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	349.3	427.9
TTM Earnings per share	Rs	55.6	81.0
Diluted earnings per share	Rs	55.6	81.0
Price to Cash Flow	x	40.9	31.6
TTM P/E ratio	x	50.9	45.9
Price / Book Value ratio	x	7.1	6.4
Market Cap	Rs m	435,055	460,089
Dividends per share (Unadj.)	Rs	6.0	10.0

Ratio Analysis for PI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.3x during FY23, from 2.8x 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 37.8x during FY23, from 65.1x 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 improved and stood at 17.1% during FY23, from 13.8% 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 improved and stood at 20.6% during FY23, from 16.7% 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 improved and stood at 12.8% during FY23, from 9.6% 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	2.8	3.3
Debtors’ Days	Days	60	43
Interest coverage	x	65.1	37.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.6	12.8
Return on equity	%	13.8	17.1
Return on capital employed	%	16.7	20.6

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 3,246.7 to Rs 3,699.8, registering a gain of Rs 453.1 or around 14.0%.

Overall, the S&P BSE SENSEX is up 12.6% over the year.

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