PRESTIGE ESTATES 2020-21 Annual Report Analysis

Wed, 31 Mar

PRESTIGE ESTATES 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.

PRESTIGE ESTATES Income Statement Analysis

• Operating income during the year fell 10.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 43.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 47.4% in FY21 as against 29.5% in FY20.
• Depreciation charges decreased by 11.1% and finance costs decreased by 3.3% YoY, respectively.
• Other income grew by 100.3% YoY.
• Net profit for the year grew by 189.8% YoY.
• Net profit margins during the year grew from 6.7% in FY20 to 21.7% in FY21.

PRESTIGE ESTATES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	81,248	72,644	-10.6%
Other income	Rs m	1,185	2,374	100.3%
Total Revenues	Rs m	82,433	75,018	-9.0%
Gross profit	Rs m	23,940	34,420	43.8%
Depreciation	Rs m	6,667	5,926	-11.1%
Interest	Rs m	10,233	9,899	-3.3%
Profit before tax	Rs m	8,225	20,969	154.9%
Tax	Rs m	2,783	5,198	86.8%
Profit after tax	Rs m	5,442	15,771	189.8%
Gross profit margin	%	29.5	47.4
Effective tax rate	%	33.8	24.8
Net profit margin	%	6.7	21.7

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PRESTIGE ESTATES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 163 billion as compared to Rs 167 billion in FY20, thereby witnessing an decrease of -2.4%.
• Long-term debt down at Rs 24 billion as compared to Rs 62 billion during FY20, a fall of 61.2%.
• Current assets rose 13% and stood at Rs 170 billion, while fixed assets fell 36% and stood at Rs 91 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 261 billion as against Rs 292 billion during FY20, thereby witnessing a fall of 11%.

PRESTIGE ESTATES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	53,602	66,753	24.5
Current Liabilities	Rs m	166,533	162,506	-2.4
Long-term Debt	Rs m	62,180	24,138	-61.2
Total Liabilities	Rs m	292,076	261,181	-10.6
Current assets	Rs m	150,676	170,398	13.1
Fixed Assets	Rs m	141,400	90,783	-35.8
Total Assets	Rs m	292,076	261,181	-10.6

PRESTIGE ESTATES Cash Flow Statement Analysis

• PRESTIGE ESTATES's cash flow from operating activities (CFO) during FY21 stood at Rs 19 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 16 billion from the Rs 1 billion net cash flows seen during FY20.

PRESTIGE ESTATES 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	22,263	18,528	-16.8%
Cash Flow from Investing Activities	Rs m	-23,496	4,911	-
Cash Flow from Financing Activities	Rs m	2,520	-6,450	-
Net Cash Flow	Rs m	1,327	15,603	1,075.8%

Current Valuations for PRESTIGE ESTATES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 39.3, an improvement from the EPS of Rs 13.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 305.7, stands at 7.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 4.1 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	202.7	181.2
TTM Earnings per share	Rs	13.6	39.3
Diluted earnings per share	Rs	13.6	39.3
Price to Cash Flow	x	5.6	4.1
TTM P/E ratio	x	12.4	7.8
Price / Book Value ratio	x	2.1	1.3
Market Cap	Rs m	114,075	89,953
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for PRESTIGE ESTATES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY21, from 0.9x 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 3.1x during FY21, from 1.8x 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 improved and stood at 23.6% during FY21, from 10.2% 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 34.0% during FY21, from 15.9% 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 improved and stood at 9.8% during FY21, from 5.4% 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	0.9	1.0
Debtors’ Days	Days	66	69
Interest coverage	x	1.8	3.1
Debt to equity ratio	x	1.2	0.4
Return on assets	%	5.4	9.8
Return on equity	%	10.2	23.6
Return on capital employed	%	15.9	34.0

To see how PRESTIGE ESTATES has performed over the last 5 years, please visit here.

PRESTIGE ESTATES Share Price Performance

Over the last one year, PRESTIGE ESTATES share price has moved up from Rs 168.1 to Rs 305.7, registering a gain of Rs 137.6 or around 81.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for PRESTIGE ESTATES and quarterly results for PRESTIGE ESTATES)

Read: Latest Annual Report Analysis of PRESTIGE ESTATES