PRINCE PIPES AND FITTINGS 2021-22 Annual Report Analysis

Tue, 6 Sep

PRINCE PIPES AND FITTINGS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

PRINCE PIPES AND FITTINGS Income Statement Analysis

• Operating income during the year rose 28.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.6% in FY22 as against 17.5% in FY21.
• Depreciation charges increased by 18.3% and finance costs decreased by 32.7% YoY, respectively.
• Other income declined by 68.9% YoY.
• Net profit for the year grew by 12.4% YoY.
• Net profit margins during the year declined from 10.7% in FY21 to 9.4% in FY22.

PRINCE PIPES AND FITTINGS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	20,715	26,568	28.3%
Other income	Rs m	176	55	-68.9%
Total Revenues	Rs m	20,891	26,623	27.4%
Gross profit	Rs m	3,616	4,156	14.9%
Depreciation	Rs m	594	703	18.3%
Interest	Rs m	207	139	-32.7%
Profit before tax	Rs m	2,991	3,369	12.6%
Tax	Rs m	773	875	13.1%
Profit after tax	Rs m	2,218	2,494	12.4%
Gross profit margin	%	17.5	15.6
Effective tax rate	%	25.8	26.0
Net profit margin	%	10.7	9.4

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PRINCE PIPES AND FITTINGS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 6 billion as compared to Rs 5 billion in FY21, thereby witnessing an increase of 26.4%.
• Current assets rose 27% and stood at Rs 12 billion, while fixed assets rose 15% and stood at Rs 7 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 19 billion as against Rs 16 billion during FY21, thereby witnessing a growth of 23%.

PRINCE PIPES AND FITTINGS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	10,409	12,653	21.6
Current Liabilities	Rs m	5,131	6,488	26.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	15,829	19,390	22.5
Current assets	Rs m	9,625	12,267	27.5
Fixed Assets	Rs m	6,204	7,123	14.8
Total Assets	Rs m	15,829	19,390	22.5

PRINCE PIPES AND FITTINGS Cash Flow Statement Analysis

• PRINCE PIPES AND FITTINGS's cash flow from operating activities (CFO) during FY22 stood at Rs -195 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 205 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 222 million, an improvement of 110% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 232 million from the Rs 84 million net cash flows seen during FY21.

PRINCE PIPES AND FITTINGS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	2,920	-195	-
Cash Flow from Investing Activities	Rs m	-697	205	-
Cash Flow from Financing Activities	Rs m	-2,139	222	-
Net Cash Flow	Rs m	84	232	176.3%

Current Valuations for PRINCE PIPES AND FITTINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.6, an improvement from the EPS of Rs 20.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 596.0, stands at 26.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 22.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	188.3	240.3
TTM Earnings per share	Rs	20.2	22.6
Diluted earnings per share	Rs	20.1	22.6
Price to Cash Flow	x	16.4	22.6
TTM P/E ratio	x	20.8	26.6
Price / Book Value ratio	x	2.9	5.7
Market Cap	Rs m	30,513	72,232
Dividends per share (Unadj.)	Rs	3.5	3.5

Ratio Analysis for PRINCE PIPES AND FITTINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY22, from 1.9x during FY21. 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 25.2x during FY22, from 15.5x during FY21. 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 declined and down at 19.7% during FY22, from 21.3% during FY22. 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 declined and down at 27.7% during FY22, from 30.7% during FY21. 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 declined and down at 13.6% during FY22, from 15.3% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.9	1.9
Debtors’ Days	Days	58	60
Interest coverage	x	15.5	25.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.3	13.6
Return on equity	%	21.3	19.7
Return on capital employed	%	30.7	27.7

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 down from Rs 669.4 to Rs 596.0, registering a loss of Rs 73.4 or around 11.0%.

Overall, the S&P BSE SENSEX is up 2.4% 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