PRINCE PIPES AND FITTINGS 2022-23 Annual Report Analysis

Tue, 29 Aug

PRINCE PIPES AND FITTINGS 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.

PRINCE PIPES AND FITTINGS Income Statement Analysis

• Operating income during the year rose 2.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 39.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.2% in FY23 as against 15.6% in FY22.
• Depreciation charges increased by 18.1% and finance costs decreased by 20.8% YoY, respectively.
• Other income grew by 56.3% YoY.
• Net profit for the year declined by 51.3% YoY.
• Net profit margins during the year declined from 9.4% in FY22 to 4.5% in FY23.

PRINCE PIPES AND FITTINGS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	26,568	27,109	2.0%
Other income	Rs m	55	86	56.3%
Total Revenues	Rs m	26,623	27,194	2.1%
Gross profit	Rs m	4,156	2,503	-39.8%
Depreciation	Rs m	703	830	18.1%
Interest	Rs m	139	110	-20.8%
Profit before tax	Rs m	3,369	1,648	-51.1%
Tax	Rs m	875	434	-50.4%
Profit after tax	Rs m	2,494	1,214	-51.3%
Gross profit margin	%	15.6	9.2
Effective tax rate	%	26.0	26.3
Net profit margin	%	9.4	4.5

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PRINCE PIPES AND FITTINGS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 5 billion as compared to Rs 6 billion in FY22, thereby witnessing an decrease of -29.1%.
• Current assets fell 8% and stood at Rs 11 billion, while fixed assets rose 2% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 19 billion as against Rs 19 billion during FY22, thereby witnessing a fall of 4%.

PRINCE PIPES AND FITTINGS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	12,653	13,640	7.8
Current Liabilities	Rs m	6,488	4,597	-29.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	19,390	18,542	-4.4
Current assets	Rs m	12,267	11,252	-8.3
Fixed Assets	Rs m	7,123	7,290	2.3
Total Assets	Rs m	19,390	18,542	-4.4

PRINCE PIPES AND FITTINGS Cash Flow Statement Analysis

• PRINCE PIPES AND FITTINGS's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 899 million from the Rs 232 million net cash flows seen during FY22.

PRINCE PIPES AND FITTINGS 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	-195	3,602	-
Cash Flow from Investing Activities	Rs m	205	-1,481	-
Cash Flow from Financing Activities	Rs m	222	-1,222	-
Net Cash Flow	Rs m	232	899	287.8%

Current Valuations for PRINCE PIPES AND FITTINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.0, an decline from the EPS of Rs 22.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 689.5, stands at 61.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.6 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 33.6 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	240.3	245.2
TTM Earnings per share	Rs	22.6	11.0
Diluted earnings per share	Rs	22.6	11.0
Price to Cash Flow	x	21.9	33.6
TTM P/E ratio	x	28.1	61.0
Price / Book Value ratio	x	5.7	5.0
Market Cap	Rs m	72,232	68,664
Dividends per share (Unadj.)	Rs	3.5	0.0

Ratio Analysis for PRINCE PIPES AND FITTINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY23, from 1.9x 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 16.0x during FY23, from 25.2x 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 declined and down at 8.9% during FY23, from 19.7% 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 declined and down at 12.9% during FY23, from 27.7% 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 declined and down at 7.1% during FY23, from 13.6% 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	1.9	2.4
Debtors’ Days	Days	60	56
Interest coverage	x	25.2	16.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.6	7.1
Return on equity	%	19.7	8.9
Return on capital employed	%	27.7	12.9

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 584.1 to Rs 689.5, registering a gain of Rs 105.4 or around 18.0%.

Overall, the S&P BSE SENSEX is up 10.7% over the year.

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