PUNJAB ALKALIES 2022-23 Annual Report Analysis

Mon, 12 Feb

PUNJAB ALKALIES 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.

PUNJAB ALKALIES Income Statement Analysis

• Operating income during the year rose 55.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 122.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.2% in FY23 as against 19.1% in FY22.
• Depreciation charges increased by 37.1% and finance costs decreased by 8.5% YoY, respectively.
• Other income grew by 72.6% YoY.
• Net profit for the year grew by 136.2% YoY.
• Net profit margins during the year grew from 12.5% in FY22 to 18.9% in FY23.

PUNJAB ALKALIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,541	7,074	55.8%
Other income	Rs m	152	262	72.6%
Total Revenues	Rs m	4,692	7,335	56.3%
Gross profit	Rs m	867	1,924	122.0%
Depreciation	Rs m	175	239	37.1%
Interest	Rs m	88	81	-8.5%
Profit before tax	Rs m	755	1,865	146.9%
Tax	Rs m	188	525	179.1%
Profit after tax	Rs m	567	1,340	136.2%
Gross profit margin	%	19.1	27.2
Effective tax rate	%	24.9	28.2
Net profit margin	%	12.5	18.9

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PUNJAB ALKALIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 40.0%.
• Long-term debt stood at Rs 1 billion as compared to Rs 527 million during FY22, a growth of 133.8%.
• Current assets rose 55% and stood at Rs 2 billion, while fixed assets rose 55% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 56%.

PUNJAB ALKALIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,763	4,125	49.3
Current Liabilities	Rs m	1,410	1,974	40.0
Long-term Debt	Rs m	527	1,231	133.8
Total Liabilities	Rs m	4,883	7,601	55.7
Current assets	Rs m	1,090	1,691	55.2
Fixed Assets	Rs m	3,761	5,824	54.9
Total Assets	Rs m	4,883	7,601	55.7

PUNJAB ALKALIES Cash Flow Statement Analysis

• PUNJAB ALKALIES's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 113.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 22.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 812 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -25 million from the Rs 164 million net cash flows seen during FY22.

PUNJAB ALKALIES 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	702	1,496	113.0%
Cash Flow from Investing Activities	Rs m	-1,912	-2,334	-
Cash Flow from Financing Activities	Rs m	1,373	812	-40.8%
Net Cash Flow	Rs m	164	-25	-

Current Valuations for PUNJAB ALKALIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.5, an improvement from the EPS of Rs 2.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 80.9, stands at 14.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 12.4 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	18.7	29.2
TTM Earnings per share	Rs	2.3	5.5
Diluted earnings per share	Rs	2.3	5.5
Price to Cash Flow	x	28.2	12.4
TTM P/E ratio	x	36.8	14.6
Price / Book Value ratio	x	18.3	4.7
Market Cap	Rs m	50,492	19,509
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PUNJAB ALKALIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY23, from 0.8x 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 improved and stood at 24.1x during FY23, from 9.6x 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 32.5% during FY23, from 20.5% 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 36.3% during FY23, from 25.6% 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 18.7% during FY23, from 13.4% 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	0.8	0.9
Debtors’ Days	Days	262	266
Interest coverage	x	9.6	24.1
Debt to equity ratio	x	0.2	0.3
Return on assets	%	13.4	18.7
Return on equity	%	20.5	32.5
Return on capital employed	%	25.6	36.3

To see how PUNJAB ALKALIES has performed over the last 5 years, please visit here.

PUNJAB ALKALIES Share Price Performance

Over the last one year, PUNJAB ALKALIES share price has moved down from Rs 86.2 to Rs 80.9, registering a loss of Rs 5.3 or around 6.1%.

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

(To know more, check out historical annual results for PUNJAB ALKALIES and quarterly results for PUNJAB ALKALIES)