PRISM JOHNSON 2020-21 Annual Report Analysis

Wed, 31 Mar

PRISM JOHNSON 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.

PRISM JOHNSON Income Statement Analysis

• Operating income during the year fell 6.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.2% in FY21 as against 9.0% in FY20.
• Depreciation charges increased by 16.7% and finance costs decreased by 15.9% YoY, respectively.
• Other income grew by 32.7% YoY.
• Net profit for the year declined by 808.1% YoY.
• Net profit margins during the year grew from 0.3% in FY20 to 2.4% in FY21.

PRISM JOHNSON Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	59,562	55,871	-6.2%
Other income	Rs m	287	382	32.7%
Total Revenues	Rs m	59,849	56,253	-6.0%
Gross profit	Rs m	5,347	6,237	16.7%
Depreciation	Rs m	2,506	2,925	16.7%
Interest	Rs m	2,581	2,171	-15.9%
Profit before tax	Rs m	548	1,523	177.8%
Tax	Rs m	740	162	-78.1%
Profit after tax	Rs m	-192	1,361	-808.1%
Gross profit margin	%	9.0	11.2
Effective tax rate	%	135.1	10.6
Net profit margin	%	-0.3	2.4

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PRISM JOHNSON Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 25 billion as compared to Rs 26 billion in FY20, thereby witnessing an decrease of -3.9%.
• Long-term debt down at Rs 14 billion as compared to Rs 15 billion during FY20, a fall of 5.0%.
• Current assets fell 5% and stood at Rs 23 billion, while fixed assets rose 5% and stood at Rs 40 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 63 billion as against Rs 62 billion during FY20, thereby witnessing a growth of 1%.

PRISM JOHNSON Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	10,790	12,415	15.1
Current Liabilities	Rs m	26,190	25,157	-3.9
Long-term Debt	Rs m	15,044	14,298	-5.0
Total Liabilities	Rs m	61,649	62,564	1.5
Current assets	Rs m	23,835	22,755	-4.5
Fixed Assets	Rs m	37,814	39,810	5.3
Total Assets	Rs m	61,649	62,564	1.5

PRISM JOHNSON Cash Flow Statement Analysis

• PRISM JOHNSON's cash flow from operating activities (CFO) during FY21 stood at Rs 13 billion, an improvement of 92.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -8 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs 748 million net cash flows seen during FY20.

PRISM JOHNSON 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	6,669	12,806	92.0%
Cash Flow from Investing Activities	Rs m	-6,568	-2,650	-
Cash Flow from Financing Activities	Rs m	648	-8,061	-
Net Cash Flow	Rs m	748	2,093	179.8%

Current Valuations for PRISM JOHNSON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.7, an improvement from the EPS of Rs -0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 131.4, stands at 48.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 9.4 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	118.3	111.0
TTM Earnings per share	Rs	-0.4	2.7
Diluted earnings per share	Rs	-0.4	2.7
Price to Cash Flow	x	6.6	9.4
TTM P/E ratio	x	-54.8	48.6
Price / Book Value ratio	x	3.0	3.2
Market Cap	Rs m	32,542	40,319
Dividends per share (Unadj.)	Rs	1.0	0.0

Ratio Analysis for PRISM JOHNSON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x 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 1.7x during FY21, from 1.2x 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 11.0% during FY21, from -1.8% 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 13.8% during FY21, from 12.1% 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 improved and stood at 5.6% during FY21, from 3.9% 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	0.9
Debtors’ Days	Days	4	4
Interest coverage	x	1.2	1.7
Debt to equity ratio	x	1.4	1.2
Return on assets	%	3.9	5.6
Return on equity	%	-1.8	11.0
Return on capital employed	%	12.1	13.8

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

PRISM JOHNSON Share Price Performance

Over the last one year, PRISM JOHNSON share price has moved up from Rs 30.4 to Rs 131.4, registering a gain of Rs 101.0 or around 332.1%.

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

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

Read: Latest Annual Report Analysis of PRISM JOHNSON