PRAKASH PIPES 2020-21 Annual Report Analysis

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Markets will remain closed on January 26, 2022 on account of Republic Day.

PRAKASH PIPES 2020-21 Annual Report Analysis
Wed, 10 Nov

PRAKASH PIPES 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.

PRAKASH PIPES Income Statement Analysis

  • Operating income during the year rose 23.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 52.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.3% in FY21 as against 10.0% in FY20.
  • Depreciation charges increased by 29.0% and finance costs decreased by 8.9% YoY, respectively.
  • Other income declined by 47.2% YoY.
  • Net profit for the year grew by 44.6% YoY.
  • Net profit margins during the year grew from 6.4% in FY20 to 7.5% in FY21.

PRAKASH PIPES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 3,851 4,762 23.6%
Other income Rs m 41 22 -47.2%
Total Revenues Rs m 3,892 4,783 22.9%
Gross profit Rs m 384 585 52.4%
Depreciation Rs m 65 84 29.0%
Interest Rs m 17 15 -8.9%
Profit before tax Rs m 343 508 48.1%
Tax Rs m 96 150 57.0%
Profit after tax Rs m 248 358 44.6%
Gross profit margin % 10.0 12.3
Effective tax rate % 27.8 29.5
Net profit margin % 6.4 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Check Out: Why Millions of Dollars are Getting Pumped into this Sector?

PRAKASH PIPES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 464 million as compared to Rs 437 million in FY20, thereby witnessing an increase of 6.3%.
  • Long-term debt stood at Rs 6 million as compared to Rs 4 million during FY20, a growth of 50.0%.
  • Current assets rose 42% and stood at Rs 1 billion, while fixed assets rose 44% and stood at Rs 829 million in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 2 billion as against Rs 2 billion during FY20, thereby witnessing a growth of 43%.

PRAKASH PIPES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 1,323 1,916 44.7
 
Current Liabilities Rs m 437 464 6.3
Long-term Debt Rs m 4 6 50.0
Total Liabilities Rs m 1,559 2,225 42.7
 
Current assets Rs m 985 1,396 41.7
Fixed Assets Rs m 574 829 44.4
Total Assets Rs m 1,559 2,225 42.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



PRAKASH PIPES Cash Flow Statement Analysis

  • PRAKASH PIPES's cash flow from operating activities (CFO) during FY21 stood at Rs 300 million, an improvement of 114.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -329 million, an improvement of 114.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 182 million, an improvement of 1,015% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 152 million from the Rs 3 million net cash flows seen during FY20.

PRAKASH PIPES 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 140 300 114.8%
Cash Flow from Investing Activities Rs m -153 -329 -
Cash Flow from Financing Activities Rs m 16 182 1,014.7%
Net Cash Flow Rs m 3 152 5,746.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for PRAKASH PIPES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.0, an improvement from the EPS of Rs 12.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 165.4, stands at 9.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.0 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 188.6 199.1
TTM Earnings per share Rs 12.1 15.0
Diluted earnings per share Rs 10.3 15.0
Price to Cash Flow x 10.8 9.0
TTM P/E ratio x 8.0 9.3
Price / Book Value ratio x 1.0 1.0
Market Cap Rs m 3,376 3,955
Dividends per share (Unadj.) Rs 1.2 1.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for PRAKASH PIPES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.0x during FY21, from 2.3x 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 34.2x during FY21, from 21.4x 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 declined and down at 18.7% during FY21, from 18.7% 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 27.2% during FY21, from 27.1% 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 declined and down at 16.8% during FY21, from 17.0% 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 2.3 3.0
Debtors’ Days Days 409 339
Interest coverage x 21.4 34.2
Debt to equity ratio x 0.0 0.0
Return on assets % 17.0 16.8
Return on equity % 18.7 18.7
Return on capital employed % 27.1 27.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how PRAKASH PIPES has performed over the last 5 years, please visit here.

PRAKASH PIPES Share Price Performance

Over the last one year, PRAKASH PIPES share price has moved up from Rs 71.7 to Rs 165.4, registering a gain of Rs 93.7 or around 130.8%.

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

(To know more, check out historical annual results for PRAKASH PIPES and quarterly results for PRAKASH PIPES)

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