PRICOL 2022-23 Annual Report Analysis

Tue, 18 Jul

PRICOL 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.

PRICOL Income Statement Analysis

• Operating income during the year rose 26.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.2% in FY23 as against 11.7% in FY22.
• Depreciation charges decreased by 4.8% and finance costs decreased by 33.0% YoY, respectively.
• Other income declined by 48.0% YoY.
• Net profit for the year grew by 144.0% YoY.
• Net profit margins during the year grew from 3.3% in FY22 to 6.4% in FY23.

PRICOL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,447	19,586	26.8%
Other income	Rs m	88	46	-48.0%
Total Revenues	Rs m	15,535	19,631	26.4%
Gross profit	Rs m	1,806	2,382	31.9%
Depreciation	Rs m	818	779	-4.8%
Interest	Rs m	273	183	-33.0%
Profit before tax	Rs m	803	1,466	82.6%
Tax	Rs m	292	219	-24.8%
Profit after tax	Rs m	511	1,247	144.0%
Gross profit margin	%	11.7	12.2
Effective tax rate	%	36.4	15.0
Net profit margin	%	3.3	6.4

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PRICOL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 13.7%.
• Long-term debt down at Rs 268 million as compared to Rs 931 million during FY22, a fall of 71.3%.
• Current assets rose 17% and stood at Rs 6 billion, while fixed assets fell 1% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 13 billion as against Rs 12 billion during FY22, thereby witnessing a growth of 9%.

PRICOL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,762	7,043	22.2
Current Liabilities	Rs m	4,369	4,969	13.7
Long-term Debt	Rs m	931	268	-71.3
Total Liabilities	Rs m	11,981	13,059	9.0
Current assets	Rs m	5,493	6,429	17.0
Fixed Assets	Rs m	6,488	6,435	-0.8
Total Assets	Rs m	11,981	13,059	9.0

PRICOL Cash Flow Statement Analysis

• PRICOL'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 -690 million, an improvement of 54.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -638 million, an improvement of 58% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 334 million from the Rs -156 million net cash flows seen during FY22.

PRICOL 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	1,826	1,663	-9.0%
Cash Flow from Investing Activities	Rs m	-447	-690	-
Cash Flow from Financing Activities	Rs m	-1,536	-638	-
Net Cash Flow	Rs m	-156	334	-

Current Valuations for PRICOL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.2, an improvement from the EPS of Rs 4.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 250.4, stands at 24.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 9.5 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	126.7	160.7
TTM Earnings per share	Rs	4.2	10.2
Diluted earnings per share	Rs	4.2	10.2
Price to Cash Flow	x	11.9	9.5
TTM P/E ratio	x	31.0	24.5
Price / Book Value ratio	x	2.2	2.7
Market Cap	Rs m	12,706	19,224
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PRICOL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.3x 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 9.0x during FY23, from 3.9x 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 17.7% during FY23, from 8.9% 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 22.6% during FY23, from 16.1% 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 10.9% during FY23, from 6.5% 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	1.3	1.3
Debtors’ Days	Days	565	499
Interest coverage	x	3.9	9.0
Debt to equity ratio	x	0.2	0.0
Return on assets	%	6.5	10.9
Return on equity	%	8.9	17.7
Return on capital employed	%	16.1	22.6

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

PRICOL Share Price Performance

Over the last one year, PRICOL share price has moved up from Rs 142.6 to Rs 250.4, registering a gain of Rs 107.9 or around 75.7%.

Overall, the S&P BSE SENSEX is up 25.0% over the year.

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