PRAKASH PIPES 2022-23 Annual Report Analysis

Fri, 1 Sep

PRAKASH PIPES 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.

PRAKASH PIPES Income Statement Analysis

• Operating income during the year rose 15.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.7% in FY23 as against 12.6% in FY22.
• Depreciation charges increased by 11.5% and finance costs increased by 29.3% YoY, respectively.
• Other income grew by 601.6% YoY.
• Net profit for the year grew by 52.3% YoY.
• Net profit margins during the year grew from 7.6% in FY22 to 10.1% in FY23.

PRAKASH PIPES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,168	7,092	15.0%
Other income	Rs m	31	216	601.6%
Total Revenues	Rs m	6,198	7,308	17.9%
Gross profit	Rs m	775	833	7.5%
Depreciation	Rs m	109	122	11.5%
Interest	Rs m	25	32	29.3%
Profit before tax	Rs m	671	895	33.3%
Tax	Rs m	203	182	-10.5%
Profit after tax	Rs m	468	713	52.3%
Gross profit margin	%	12.6	11.7
Effective tax rate	%	30.3	20.3
Net profit margin	%	7.6	10.1

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PRAKASH PIPES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 629 million as compared to Rs 574 million in FY22, thereby witnessing an increase of 9.6%.
• Long-term debt down at Rs 3 million as compared to Rs 4 million during FY22, a fall of 38.1%.
• Current assets rose 49% and stood at Rs 3 billion, while fixed assets fell 27% and stood at Rs 796 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 20%.

PRAKASH PIPES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,353	2,786	18.4
Current Liabilities	Rs m	574	629	9.6
Long-term Debt	Rs m	4	3	-38.1
Total Liabilities	Rs m	2,843	3,403	19.7
Current assets	Rs m	1,753	2,608	48.7
Fixed Assets	Rs m	1,090	796	-27.0
Total Assets	Rs m	2,843	3,403	19.7

PRAKASH PIPES Cash Flow Statement Analysis

• PRAKASH PIPES's cash flow from operating activities (CFO) during FY23 stood at Rs 425 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 156 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 5 million, an improvement of 11% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 586 million from the Rs 160 million net cash flows seen during FY22.

PRAKASH PIPES 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	512	425	-17.0%
Cash Flow from Investing Activities	Rs m	-357	156	-
Cash Flow from Financing Activities	Rs m	5	5	11.1%
Net Cash Flow	Rs m	160	586	267.2%

Current Valuations for PRAKASH PIPES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.8, an improvement from the EPS of Rs 19.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 261.1, stands at 9.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 4.9 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	257.8	296.5
TTM Earnings per share	Rs	19.6	29.8
Diluted earnings per share	Rs	19.6	29.8
Price to Cash Flow	x	6.4	4.9
TTM P/E ratio	x	7.9	9.6
Price / Book Value ratio	x	1.6	1.5
Market Cap	Rs m	3,686	4,105
Dividends per share (Unadj.)	Rs	1.2	1.2

Ratio Analysis for PRAKASH PIPES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.1x during FY23, from 3.1x 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 improved and stood at 28.8x during FY23, from 28.0x 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 25.6% during FY23, from 19.9% 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 33.2% during FY23, from 29.5% 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 21.9% during FY23, from 17.3% 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	3.1	4.1
Debtors’ Days	Days	348	387
Interest coverage	x	28.0	28.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.3	21.9
Return on equity	%	19.9	25.6
Return on capital employed	%	29.5	33.2

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 188.6 to Rs 261.1, registering a gain of Rs 72.6 or around 38.5%.

Overall, the S&P BSE SENSEX is up 8.9% over the year.

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