PRESTIGE ESTATES 2022-23 Annual Report Analysis

Fri, 31 Mar

PRESTIGE ESTATES 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.

PRESTIGE ESTATES Income Statement Analysis

• Operating income during the year rose 30.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 29.0% in FY23 as against 36.4% in FY22.
• Depreciation charges increased by 37.4% and finance costs increased by 45.3% YoY, respectively.
• Other income grew by 116.9% YoY.
• Net profit for the year declined by 12.2% YoY.
• Net profit margins during the year declined from 19.0% in FY22 to 12.8% in FY23.

PRESTIGE ESTATES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	63,895	83,150	30.1%
Other income	Rs m	2,107	4,570	116.9%
Total Revenues	Rs m	66,002	87,720	32.9%
Gross profit	Rs m	23,249	24,110	3.7%
Depreciation	Rs m	4,710	6,471	37.4%
Interest	Rs m	5,553	8,066	45.3%
Profit before tax	Rs m	15,093	14,143	-6.3%
Tax	Rs m	2,945	3,475	18.0%
Profit after tax	Rs m	12,148	10,668	-12.2%
Gross profit margin	%	36.4	29.0
Effective tax rate	%	19.5	24.6
Net profit margin	%	19.0	12.8

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PRESTIGE ESTATES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 215 billion as compared to Rs 159 billion in FY22, thereby witnessing an increase of 35.2%.
• Long-term debt down at Rs 34 billion as compared to Rs 40 billion during FY22, a fall of 14.8%.
• Current assets rose 22% and stood at Rs 240 billion, while fixed assets rose 17% and stood at Rs 121 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 360 billion as against Rs 299 billion during FY22, thereby witnessing a growth of 21%.

PRESTIGE ESTATES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	90,946	99,753	9.7
Current Liabilities	Rs m	158,783	214,673	35.2
Long-term Debt	Rs m	40,029	34,100	-14.8
Total Liabilities	Rs m	298,574	360,247	20.7
Current assets	Rs m	195,713	239,582	22.4
Fixed Assets	Rs m	102,861	120,665	17.3
Total Assets	Rs m	298,574	360,247	20.7

PRESTIGE ESTATES Cash Flow Statement Analysis

• PRESTIGE ESTATES's cash flow from operating activities (CFO) during FY23 stood at Rs 15 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -28 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 5 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -6 billion from the Rs -3 billion net cash flows seen during FY22.

PRESTIGE ESTATES 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	21,399	15,395	-28.1%
Cash Flow from Investing Activities	Rs m	-40,454	-27,561	-
Cash Flow from Financing Activities	Rs m	15,984	5,455	-65.9%
Net Cash Flow	Rs m	-2,775	-6,121	-

Current Valuations for PRESTIGE ESTATES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.6, an decline from the EPS of Rs 30.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 402.9, stands at 15.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 10.5 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	159.4	207.4
TTM Earnings per share	Rs	30.3	26.6
Diluted earnings per share	Rs	30.3	26.6
Price to Cash Flow	x	11.7	10.5
TTM P/E ratio	x	16.1	15.4
Price / Book Value ratio	x	1.8	1.8
Market Cap	Rs m	163,061	180,708
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for PRESTIGE ESTATES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.2x 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 2.8x during FY23, from 3.7x 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 declined and down at 10.7% during FY23, from 13.4% 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 16.6% during FY23, from 15.8% 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 declined and down at 5.2% during FY23, from 5.9% 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	1.2	1.1
Debtors’ Days	Days	81	58
Interest coverage	x	3.7	2.8
Debt to equity ratio	x	0.4	0.3
Return on assets	%	5.9	5.2
Return on equity	%	13.4	10.7
Return on capital employed	%	15.8	16.6

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 down from Rs 493.9 to Rs 402.9, registering a loss of Rs 91.0 or around 18.4%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,101.6 (up 1.6%). Over the last one year it has moved down from 3,681.8 to 3,101.6, a loss of 580 points (down 15.8%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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