POLYCAB INDIA 2022-23 Annual Report Analysis

Sun, 11 Jun

POLYCAB INDIA 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.

POLYCAB INDIA Income Statement Analysis

• Operating income during the year rose 15.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 47.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.0% in FY23 as against 10.2% in FY22.
• Depreciation charges increased by 3.8% and finance costs increased by 69.8% YoY, respectively.
• Other income grew by 30.0% YoY.
• Net profit for the year grew by 51.7% YoY.
• Net profit margins during the year grew from 6.9% in FY22 to 9.1% in FY23.

POLYCAB INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	122,038	141,078	15.6%
Other income	Rs m	1,049	1,364	30.0%
Total Revenues	Rs m	123,087	142,442	15.7%
Gross profit	Rs m	12,476	18,397	47.5%
Depreciation	Rs m	2,015	2,092	3.8%
Interest	Rs m	352	598	69.8%
Profit before tax	Rs m	11,159	17,073	53.0%
Tax	Rs m	2,706	4,250	57.0%
Profit after tax	Rs m	8,452	12,823	51.7%
Gross profit margin	%	10.2	13.0
Effective tax rate	%	24.3	24.9
Net profit margin	%	6.9	9.1

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POLYCAB INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 26 billion as compared to Rs 17 billion in FY22, thereby witnessing an increase of 50.8%.
• Long-term debt stood at Rs 42 million as compared to Rs 30 million during FY22, a growth of 41.5%.
• Current assets rose 34% and stood at Rs 69 billion, while fixed assets rose 11% and stood at Rs 25 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 94 billion as against Rs 74 billion during FY22, thereby witnessing a growth of 27%.

POLYCAB INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	55,086	65,995	19.8
Current Liabilities	Rs m	17,413	26,266	50.8
Long-term Debt	Rs m	30	42	41.5
Total Liabilities	Rs m	74,119	94,241	27.1
Current assets	Rs m	51,411	69,087	34.4
Fixed Assets	Rs m	22,708	25,154	10.8
Total Assets	Rs m	74,119	94,241	27.1

POLYCAB INDIA Cash Flow Statement Analysis

• POLYCAB INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 14 billion, an improvement of 179.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -12 billion, an improvement of 181.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -22 million from the Rs -1 billion net cash flows seen during FY22.

POLYCAB INDIA 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	5,116	14,275	179.0%
Cash Flow from Investing Activities	Rs m	-4,270	-12,026	-
Cash Flow from Financing Activities	Rs m	-2,007	-2,271	-
Net Cash Flow	Rs m	-1,160	-22	-

Current Valuations for POLYCAB INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 85.6, an improvement from the EPS of Rs 56.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,547.6, stands at 41.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.1 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 26.0 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	816.6	942.0
TTM Earnings per share	Rs	56.6	85.6
Diluted earnings per share	Rs	56.4	85.6
Price to Cash Flow	x	33.9	26.0
TTM P/E ratio	x	41.8	41.2
Price / Book Value ratio	x	5.6	5.9
Market Cap	Rs m	305,846	388,416
Dividends per share (Unadj.)	Rs	14.0	20.0

Ratio Analysis for POLYCAB INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY23, from 3.0x 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 29.6x during FY23, from 32.7x 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 19.4% during FY23, from 15.3% 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 26.8% during FY23, from 20.9% 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 14.2% during FY23, from 11.9% 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	3.0	2.6
Debtors’ Days	Days	39	32
Interest coverage	x	32.7	29.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.9	14.2
Return on equity	%	15.3	19.4
Return on capital employed	%	20.9	26.8

To see how POLYCAB INDIA has performed over the last 5 years, please visit here.

POLYCAB INDIA Share Price Performance

Over the last one year, POLYCAB INDIA share price has moved up from Rs 2,331.0 to Rs 3,547.6, registering a gain of Rs 1,216.7 or around 52.2%.

Overall, the S&P BSE SENSEX is up 14.1% over the year.

(To know more, check out historical annual results for POLYCAB INDIA and quarterly results for POLYCAB INDIA)