PONNI SUGARS ERO. 2022-23 Annual Report Analysis

Tue, 30 May

PONNI SUGARS ERO. 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.

PONNI SUGARS ERO. Income Statement Analysis

• Operating income during the year rose 51.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.8% in FY23 as against 12.3% in FY22.
• Depreciation charges increased by 17.7% and finance costs increased by 191.7% YoY, respectively.
• Other income grew by 145.3% YoY.
• Net profit for the year grew by 31.1% YoY.
• Net profit margins during the year declined from 10.1% in FY22 to 8.8% in FY23.

PONNI SUGARS ERO. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,884	4,354	51.0%
Other income	Rs m	70	171	145.3%
Total Revenues	Rs m	2,953	4,525	53.2%
Gross profit	Rs m	356	385	8.1%
Depreciation	Rs m	64	76	17.7%
Interest	Rs m	1	4	191.7%
Profit before tax	Rs m	360	476	32.4%
Tax	Rs m	67	93	38.1%
Profit after tax	Rs m	293	383	31.1%
Gross profit margin	%	12.3	8.8
Effective tax rate	%	18.7	19.5
Net profit margin	%	10.1	8.8

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PONNI SUGARS ERO. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 481 million as compared to Rs 403 million in FY22, thereby witnessing an increase of 19.4%.
• Current assets rose 9% and stood at Rs 1 billion, while fixed assets rose 29% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 23%.

PONNI SUGARS ERO. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,685	4,529	22.9
Current Liabilities	Rs m	403	481	19.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,186	5,145	22.9
Current assets	Rs m	1,323	1,444	9.1
Fixed Assets	Rs m	2,863	3,701	29.3
Total Assets	Rs m	4,186	5,145	22.9

PONNI SUGARS ERO. Cash Flow Statement Analysis

• PONNI SUGARS ERO.'s cash flow from operating activities (CFO) during FY23 stood at Rs 114 million, an improvement of 4.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 7 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -51 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 70 million from the Rs -64 million net cash flows seen during FY22.

PONNI SUGARS ERO. 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	109	114	4.5%
Cash Flow from Investing Activities	Rs m	-129	7	-
Cash Flow from Financing Activities	Rs m	-44	-51	-
Net Cash Flow	Rs m	-64	70	-

Current Valuations for PONNI SUGARS ERO.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.6, an improvement from the EPS of Rs 34.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 397.0, stands at 8.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 7.4 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	335.3	506.3
TTM Earnings per share	Rs	34.0	44.6
Diluted earnings per share	Rs	34.0	44.6
Price to Cash Flow	x	5.6	7.4
TTM P/E ratio	x	6.8	8.9
Price / Book Value ratio	x	0.6	0.8
Market Cap	Rs m	2,208	3,401
Dividends per share (Unadj.)	Rs	5.5	6.5

Ratio Analysis for PONNI SUGARS ERO.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.0x during FY23, from 3.3x 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 137.1x during FY23, from 300.8x 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 8.5% during FY23, from 7.9% 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 10.6% during FY23, from 9.8% 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 7.5% during FY23, from 7.0% 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	3.3	3.0
Debtors’ Days	Days	575	189
Interest coverage	x	300.8	137.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.0	7.5
Return on equity	%	7.9	8.5
Return on capital employed	%	9.8	10.6

To see how PONNI SUGARS ERO. has performed over the last 5 years, please visit here.

PONNI SUGARS ERO. Share Price Performance

Over the last one year, PONNI SUGARS ERO. share price has moved up from Rs 242.5 to Rs 397.0, registering a gain of Rs 154.5 or around 63.7%.

Overall, the S&P BSE SENSEX is up 16.0% over the year.

(To know more, check out historical annual results for PONNI SUGARS ERO. and quarterly results for PONNI SUGARS ERO.)