PRAJ IND.LTD 2021-22 Annual Report Analysis

Mon, 18 Jul

PRAJ IND.LTD 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.

PRAJ IND.LTD Income Statement Analysis

• Operating income during the year rose 68.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 72.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.8% in FY22 as against 8.6% in FY21.
• Depreciation charges increased by 2.1% and finance costs decreased by 12.4% YoY, respectively.
• Other income grew by 40.6% YoY.
• Net profit for the year grew by 85.3% YoY.
• Net profit margins during the year grew from 6.2% in FY21 to 6.8% in FY22.

PRAJ IND.LTD Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	13,126	22,129	68.6%
Other income	Rs m	257	362	40.6%
Total Revenues	Rs m	13,383	22,490	68.1%
Gross profit	Rs m	1,123	1,938	72.5%
Depreciation	Rs m	221	226	2.1%
Interest	Rs m	29	25	-12.4%
Profit before tax	Rs m	1,131	2,049	81.1%
Tax	Rs m	320	546	70.5%
Profit after tax	Rs m	811	1,502	85.3%
Gross profit margin	%	8.6	8.8
Effective tax rate	%	28.3	26.7
Net profit margin	%	6.2	6.8

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

PRAJ IND.LTD Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 13 billion as compared to Rs 8 billion in FY21, thereby witnessing an increase of 65.4%.
• Current assets rose 49% and stood at Rs 18 billion, while fixed assets rose 6% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 22 billion as against Rs 16 billion during FY21, thereby witnessing a growth of 40%.

PRAJ IND.LTD Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	8,000	9,128	14.1
Current Liabilities	Rs m	7,643	12,645	65.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	15,834	22,108	39.6
Current assets	Rs m	12,354	18,405	49.0
Fixed Assets	Rs m	3,480	3,703	6.4
Total Assets	Rs m	15,834	22,108	39.6

PRAJ IND.LTD Cash Flow Statement Analysis

• PRAJ IND.LTD's cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -444 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 63 million from the Rs 553 million net cash flows seen during FY21.

PRAJ IND.LTD 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	2,251	1,747	-22.4%
Cash Flow from Investing Activities	Rs m	-1,643	-1,268	-
Cash Flow from Financing Activities	Rs m	-63	-444	-
Net Cash Flow	Rs m	553	63	-88.5%

Current Valuations for PRAJ IND.LTD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an improvement from the EPS of Rs 4.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 385.0, stands at 47.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.7 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 33.5 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	71.6	120.5
TTM Earnings per share	Rs	4.4	8.2
Diluted earnings per share	Rs	4.4	8.2
Price to Cash Flow	x	34.6	33.5
TTM P/E ratio	x	44.1	47.1
Price / Book Value ratio	x	2.9	6.3
Market Cap	Rs m	23,233	57,949
Dividends per share (Unadj.)	Rs	2.2	4.2

Ratio Analysis for PRAJ IND.LTD

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY22, from 1.6x 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 82.8x during FY22, from 40.6x 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 improved and stood at 16.5% during FY22, from 10.1% 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 improved and stood at 22.7% during FY22, from 14.5% 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 improved and stood at 6.9% during FY22, from 5.3% 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	1.6	1.5
Debtors’ Days	Days	126	84
Interest coverage	x	40.6	82.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.3	6.9
Return on equity	%	10.1	16.5
Return on capital employed	%	14.5	22.7

To see how PRAJ IND.LTD has performed over the last 5 years, please visit here.

PRAJ IND.LTD Share Price Performance

Over the last one year, PRAJ IND.LTD share price has moved up from Rs 363.5 to Rs 385.0, registering a gain of Rs 21.5 or around 5.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 28,236.8 (up 2.2%). Over the last one year it has moved up from 23,868.7 to 28,236.8, a gain of 4,368 points (up 18.3%).

Overall, the S&P BSE SENSEX is up 2.7% over the year.

(To know more, check out historical annual results for PRAJ IND.LTD and quarterly results for PRAJ IND.LTD)

Read: Latest Annual Report Analysis of PRAJ IND.LTD