PRAJ IND.LTD 2022-23 Annual Report Analysis

Wed, 5 Jul

PRAJ IND.LTD 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.

PRAJ IND.LTD Income Statement Analysis

• Operating income during the year rose 61.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 58.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.6% in FY23 as against 8.7% in FY22.
• Depreciation charges increased by 33.9% and finance costs increased by 84.6% YoY, respectively.
• Other income grew by 26.6% YoY.
• Net profit for the year grew by 59.6% YoY.
• Net profit margins during the year declined from 6.8% in FY22 to 6.7% in FY23.

PRAJ IND.LTD Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	22,228	35,818	61.1%
Other income	Rs m	362	458	26.6%
Total Revenues	Rs m	22,590	36,276	60.6%
Gross profit	Rs m	1,938	3,078	58.8%
Depreciation	Rs m	226	302	33.9%
Interest	Rs m	25	46	84.6%
Profit before tax	Rs m	2,049	3,187	55.6%
Tax	Rs m	546	789	44.4%
Profit after tax	Rs m	1,502	2,398	59.6%
Gross profit margin	%	8.7	8.6
Effective tax rate	%	26.7	24.8
Net profit margin	%	6.8	6.7

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PRAJ IND.LTD Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 15 billion as compared to Rs 13 billion in FY22, thereby witnessing an increase of 18.2%.
• Current assets rose 18% and stood at Rs 22 billion, while fixed assets rose 15% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 26 billion as against Rs 22 billion during FY22, thereby witnessing a growth of 18%.

PRAJ IND.LTD Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	9,128	10,753	17.8
Current Liabilities	Rs m	12,696	15,005	18.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	22,158	26,075	17.7
Current assets	Rs m	18,455	21,820	18.2
Fixed Assets	Rs m	3,703	4,255	14.9
Total Assets	Rs m	22,158	26,075	17.7

PRAJ IND.LTD Cash Flow Statement Analysis

• PRAJ IND.LTD's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -844 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -934 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -89 million from the Rs 63 million net cash flows seen during FY22.

PRAJ IND.LTD 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	1,877	1,621	-13.6%
Cash Flow from Investing Activities	Rs m	-1,397	-844	-
Cash Flow from Financing Activities	Rs m	-444	-934	-
Net Cash Flow	Rs m	63	-89	-

Current Valuations for PRAJ IND.LTD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.1, an improvement from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 371.0, stands at 28.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 25.5 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	121.0	195.0
TTM Earnings per share	Rs	8.2	13.1
Diluted earnings per share	Rs	8.2	13.1
Price to Cash Flow	x	42.3	25.5
TTM P/E ratio	x	48.7	28.4
Price / Book Value ratio	x	6.3	6.4
Market Cap	Rs m	57,949	68,943
Dividends per share (Unadj.)	Rs	4.2	4.5

Ratio Analysis for PRAJ IND.LTD

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.5x 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 69.9x during FY23, from 82.7x 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 improved and stood at 22.3% during FY23, from 16.5% 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 improved and stood at 30.1% during FY23, from 22.7% 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 improved and stood at 9.4% during FY23, from 6.9% 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	1.5	1.5
Debtors’ Days	Days	84	81
Interest coverage	x	82.7	69.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.9	9.4
Return on equity	%	16.5	22.3
Return on capital employed	%	22.7	30.1

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 360.3 to Rs 371.0, registering a gain of Rs 10.8 or around 3.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 40,749.7 (up 0.5%). Over the last one year it has moved up from 26,241.6 to 40,749.7, a gain of 14,508 points (up 55.3%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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