PILANI INVESTMENT 2022-23 Annual Report Analysis

Tue, 20 Feb

PILANI INVESTMENT 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.

PILANI INVESTMENT Income Statement Analysis

• Operating income during the year rose 8.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 97.6% in FY23 as against 97.2% in FY22.
• Depreciation charges decreased by 21.1% and finance costs increased by 10.3% YoY, respectively.
• Other income grew by 291.1% YoY.
• Net profit for the year grew by 6.6% YoY.
• Net profit margins during the year declined from 56.8% in FY22 to 56.0% in FY23.

PILANI INVESTMENT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,575	2,786	8.2%
Other income	Rs m	2	10	291.1%
Total Revenues	Rs m	2,578	2,796	8.5%
Gross profit	Rs m	2,505	2,719	8.6%
Depreciation	Rs m	4	3	-21.1%
Interest	Rs m	589	650	10.3%
Profit before tax	Rs m	1,914	2,076	8.4%
Tax	Rs m	451	517	14.5%
Profit after tax	Rs m	1,463	1,559	6.6%
Gross profit margin	%	97.2	97.6
Effective tax rate	%	23.6	24.9
Net profit margin	%	56.8	56.0

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PILANI INVESTMENT Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -16.9%.
• Long-term debt down at Rs 4 billion as compared to Rs 7 billion during FY22, a fall of 38.8%.
• Current assets fell 8% and stood at Rs 22 billion, while fixed assets fell 1% and stood at Rs 103 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 124 billion as against Rs 127 billion during FY22, thereby witnessing a fall of 2%.

PILANI INVESTMENT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	111,023	111,695	0.6
Current Liabilities	Rs m	4,120	3,424	-16.9
Long-term Debt	Rs m	6,713	4,107	-38.8
Total Liabilities	Rs m	127,106	124,162	-2.3
Current assets	Rs m	23,558	21,660	-8.1
Fixed Assets	Rs m	103,549	102,502	-1.0
Total Assets	Rs m	127,106	124,162	-2.3

PILANI INVESTMENT Cash Flow Statement Analysis

• PILANI INVESTMENT's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -85 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -32 million from the Rs 43 million net cash flows seen during FY22.

PILANI INVESTMENT 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	-1,004	4,174	-
Cash Flow from Investing Activities	Rs m	-761	-85	-
Cash Flow from Financing Activities	Rs m	1,807	-4,122	-
Net Cash Flow	Rs m	43	-32	-

Current Valuations for PILANI INVESTMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 140.9, an improvement from the EPS of Rs 132.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,624.0, stands at 11.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.2 times, while the price to sales ratio stands at 6.5 times.
• The company's price to cash flow (P/CF) ratio stood at 12.9 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	232.7	251.7
TTM Earnings per share	Rs	132.2	140.9
Diluted earnings per share	Rs	132.1	140.8
Price to Cash Flow	x	12.8	12.9
TTM P/E ratio	x	12.8	11.5
Price / Book Value ratio	x	0.2	0.2
Market Cap	Rs m	20,876	20,151
Dividends per share (Unadj.)	Rs	15.0	15.0

Ratio Analysis for PILANI INVESTMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.3x during FY23, from 5.7x 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 deteriorated and stood at 4.2x during FY23, from 4.2x 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 1.4% during FY23, from 1.3% 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 2.4% during FY23, from 2.1% 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 1.8% during FY23, from 1.6% 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	5.7	6.3
Debtors’ Days	Days	4	6
Interest coverage	x	4.2	4.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	1.6	1.8
Return on equity	%	1.3	1.4
Return on capital employed	%	2.1	2.4

To see how PILANI INVESTMENT has performed over the last 5 years, please visit here.

PILANI INVESTMENT Share Price Performance

Over the last one year, PILANI INVESTMENT share price has moved down from Rs 1,697.5 to Rs 1,624.0, registering a loss of Rs 73.5 or around 4.3%.

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

(To know more, check out historical annual results for PILANI INVESTMENT and quarterly results for PILANI INVESTMENT)