PNC INFRATECH 2022-23 Annual Report Analysis

Fri, 31 Mar

PNC INFRATECH 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.

PNC INFRATECH Income Statement Analysis

• Operating income during the year rose 14.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.4% in FY23 as against 22.4% in FY22.
• Depreciation charges decreased by 35.1% and finance costs increased by 10.5% YoY, respectively.
• Other income declined by 12.3% YoY.
• Net profit for the year grew by 13.4% YoY.
• Net profit margins during the year declined from 8.5% in FY22 to 8.4% in FY23.

PNC INFRATECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	68,353	78,405	14.7%
Other income	Rs m	922	808	-12.3%
Total Revenues	Rs m	69,275	79,213	14.3%
Gross profit	Rs m	15,294	15,998	4.6%
Depreciation	Rs m	3,902	2,533	-35.1%
Interest	Rs m	4,253	4,699	10.5%
Profit before tax	Rs m	8,061	9,575	18.8%
Tax	Rs m	2,257	2,990	32.5%
Profit after tax	Rs m	5,804	6,585	13.4%
Gross profit margin	%	22.4	20.4
Effective tax rate	%	28.0	31.2
Net profit margin	%	8.5	8.4

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PNC INFRATECH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 19 billion as compared to Rs 17 billion in FY22, thereby witnessing an increase of 11.0%.
• Long-term debt stood at Rs 56 billion as compared to Rs 43 billion during FY22, a growth of 28.2%.
• Current assets rose 12% and stood at Rs 32 billion, while fixed assets rose 21% and stood at Rs 94 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 126 billion as against Rs 106 billion during FY22, thereby witnessing a growth of 19%.

PNC INFRATECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	36,281	42,850	18.1
Current Liabilities	Rs m	17,152	19,039	11.0
Long-term Debt	Rs m	43,366	55,593	28.2
Total Liabilities	Rs m	106,388	126,321	18.7
Current assets	Rs m	28,867	32,236	11.7
Fixed Assets	Rs m	77,504	94,086	21.4
Total Assets	Rs m	106,388	126,321	18.7

PNC INFRATECH Cash Flow Statement Analysis

• PNC INFRATECH's cash flow from operating activities (CFO) during FY23 stood at Rs -15 billion, an improvement of 191.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 3 billion, an improvement of 1,287.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 10 billion, an improvement of 578% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs -3 billion net cash flows seen during FY22.

PNC INFRATECH 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	-4,986	-14,541	-
Cash Flow from Investing Activities	Rs m	247	3,431	1,287.6%
Cash Flow from Financing Activities	Rs m	1,482	10,050	578.0%
Net Cash Flow	Rs m	-3,256	-1,061	-

Current Valuations for PNC INFRATECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.7, an improvement from the EPS of Rs 22.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 288.8, stands at 11.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 8.1 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	266.4	305.6
TTM Earnings per share	Rs	22.6	25.7
Diluted earnings per share	Rs	22.6	25.7
Price to Cash Flow	x	6.9	8.1
TTM P/E ratio	x	11.5	11.3
Price / Book Value ratio	x	2.2	1.7
Market Cap	Rs m	78,636	73,614
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for PNC INFRATECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY23, from 1.7x 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 improved and stood at 3.0x during FY23, from 2.9x 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 declined and down at 15.4% during FY23, from 16.0% 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 declined and down at 14.5% during FY23, from 15.5% 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 declined and down at 8.9% during FY23, from 9.5% 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	1.7	1.7
Debtors’ Days	Days	356	512
Interest coverage	x	2.9	3.0
Debt to equity ratio	x	1.2	1.3
Return on assets	%	9.5	8.9
Return on equity	%	16.0	15.4
Return on capital employed	%	15.5	14.5

To see how PNC INFRATECH has performed over the last 5 years, please visit here.

PNC INFRATECH Share Price Performance

Over the last one year, PNC INFRATECH share price has moved up from Rs 259.3 to Rs 288.8, registering a gain of Rs 29.5 or around 11.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for PNC INFRATECH and quarterly results for PNC INFRATECH)