PRINCE PIPES AND FITTINGS 2020-21 Annual Report Analysis

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PRINCE PIPES AND FITTINGS 2020-21 Annual Report Analysis
Wed, 10 Nov

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 6.8% in FY20 to 10.6% 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 % 6.8 10.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 839.0, stands at 36.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 33.0 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 56.1 33.0
TTM P/E ratio x 35.8 36.0
Price / Book Value ratio x 1.9 2.9
Market Cap Rs m 92,312 92,761
Dividends per share (Unadj.) Rs 1.0 3.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 240.1 to Rs 839.0, registering a gain of Rs 599.0 or around 249.5%.

Overall, the S&P BSE SENSEX is up 41.7% over the year.

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

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