PRINCE PIPES AND FITTINGS 2020-21 Annual Report Analysis

Wed, 31 Mar

PRINCE PIPES AND FITTINGS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

PRINCE PIPES AND FITTINGS Income Statement Analysis

• Operating income during the year rose 26.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 58.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.5% in FY21 as against 14.0% in FY20.
• Depreciation charges increased by 14.3% and finance costs decreased by 37.7% YoY, respectively.
• Other income grew by 153.4% YoY.
• Net profit for the year grew by 97.2% YoY.
• Net profit margins during the year grew from 6.9% in FY20 to 10.7% in FY21.

PRINCE PIPES AND FITTINGS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	16,357	20,715	26.6%
Other income	Rs m	69	176	153.4%
Total Revenues	Rs m	16,426	20,891	27.2%
Gross profit	Rs m	2,288	3,616	58.1%
Depreciation	Rs m	520	594	14.3%
Interest	Rs m	332	207	-37.7%
Profit before tax	Rs m	1,506	2,991	98.7%
Tax	Rs m	381	773	103.1%
Profit after tax	Rs m	1,125	2,218	97.2%
Gross profit margin	%	14.0	17.5
Effective tax rate	%	25.3	25.8
Net profit margin	%	6.9	10.7

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PRINCE PIPES AND FITTINGS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 7 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 11.2%.
• Current assets rose 19% and stood at Rs 11 billion, while fixed assets rose 10% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 17 billion as against Rs 15 billion during FY20, thereby witnessing a growth of 15%.

PRINCE PIPES AND FITTINGS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	8,354	10,409	24.6
Current Liabilities	Rs m	5,944	6,611	11.2
Long-term Debt	Rs m	395	0	-100.0
Total Liabilities	Rs m	15,135	17,455	15.3
Current assets	Rs m	9,480	11,251	18.7
Fixed Assets	Rs m	5,655	6,204	9.7
Total Assets	Rs m	15,135	17,455	15.3

PRINCE PIPES AND FITTINGS Cash Flow Statement Analysis

• PRINCE PIPES AND FITTINGS's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 200.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -856 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 84 million from the Rs -88 million net cash flows seen during FY20.

PRINCE PIPES AND FITTINGS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	1,023	3,073	200.4%
Cash Flow from Investing Activities	Rs m	-3,677	-856	-
Cash Flow from Financing Activities	Rs m	2,566	-2,133	-
Net Cash Flow	Rs m	-88	84	-

Current Valuations for PRINCE PIPES AND FITTINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.2, an improvement from the EPS of Rs 10.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 417.8, stands at 20.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 10.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	148.7	188.3
TTM Earnings per share	Rs	10.2	20.2
Diluted earnings per share	Rs	10.2	20.1
Price to Cash Flow	x	6.9	10.8
TTM P/E ratio	x	13.1	20.8
Price / Book Value ratio	x	1.9	2.9
Market Cap	Rs m	15,681	30,513
Dividends per share (Unadj.)	Rs	1.0	3.5

Ratio Analysis for PRINCE PIPES AND FITTINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.6x during FY20. 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 15.5x during FY21, from 5.5x during FY20. 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 21.3% during FY21, from 13.5% during FY21. 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 30.7% during FY21, from 21.0% during FY20. 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 13.9% during FY21, from 9.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.6	1.7
Debtors’ Days	Days	40	62
Interest coverage	x	5.5	15.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.6	13.9
Return on equity	%	13.5	21.3
Return on capital employed	%	21.0	30.7

To see how PRINCE PIPES AND FITTINGS has performed over the last 5 years, please visit here.

PRINCE PIPES AND FITTINGS Share Price Performance

Over the last one year, PRINCE PIPES AND FITTINGS share price has moved up from Rs 102.3 to Rs 417.8, registering a gain of Rs 315.6 or around 308.6%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for PRINCE PIPES AND FITTINGS and quarterly results for PRINCE PIPES AND FITTINGS)

Read: Latest Annual Report Analysis of PRINCE PIPES AND FITTINGS