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PMC FINCORP 2021-22 Annual Report Analysis

Thu, 31 Mar

PMC FINCORP has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

PMC FINCORP Income Statement Analysis

• Operating income during the year rose 35.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 46.9% in FY22 as against 57.2% in FY21.
• Depreciation charges decreased by 34.8% and finance costs increased by 37.3% YoY, respectively.
• Other income grew by 0.0% YoY.
• Net profit for the year declined by 0.1% YoY.
• Net profit margins during the year declined from 33.4% in FY21 to 24.6% in FY22.

PMC FINCORP Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	54	74	35.9%
Other income	Rs m	0	0	0.0%
Total Revenues	Rs m	54	74	35.9%
Gross profit	Rs m	31	35	11.3%
Depreciation	Rs m	0	0	-34.8%
Interest	Rs m	7	9	37.3%
Profit before tax	Rs m	24	26	4.8%
Tax	Rs m	6	7	19.2%
Profit after tax	Rs m	18	18	-0.1%
Gross profit margin	%	57.2	46.9
Effective tax rate	%	25.4	28.9
Net profit margin	%	33.4	24.6

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PMC FINCORP Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 255 million as compared to Rs 84 million in FY21, thereby witnessing an increase of 202.5%.
• Current assets rose 48% and stood at Rs 1 billion, while fixed assets rose 4% and stood at Rs 47 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 804 million during FY21, thereby witnessing a growth of 45%.

PMC FINCORP Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	717	738	2.9
Current Liabilities	Rs m	84	255	202.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	804	1,170	45.5
Current assets	Rs m	759	1,123	48.0
Fixed Assets	Rs m	45	47	3.6
Total Assets	Rs m	804	1,170	45.5

PMC FINCORP Cash Flow Statement Analysis

• PMC FINCORP's cash flow from operating activities (CFO) during FY22 stood at Rs -316 million, an improvement of 1,132.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 3 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 357 million, an improvement of 1,010% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 44 million from the Rs -2 million net cash flows seen during FY21.

PMC FINCORP Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-26	-316	-
Cash Flow from Investing Activities	Rs m	63	3	-95.0%
Cash Flow from Financing Activities	Rs m	-39	357	-
Net Cash Flow	Rs m	-2	44	-

Current Valuations for PMC FINCORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an decline from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5.5, stands at 163.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 38.1 times.
• The company's price to cash flow (P/CF) ratio stood at 172.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	0.1	0.1
TTM Earnings per share	Rs	0.0	0.0
Diluted earnings per share	Rs	0.0	0.0
Price to Cash Flow	x	29.6	172.1
TTM P/E ratio	x	30.0	163.0
Price / Book Value ratio	x	0.6	4.3
Market Cap	Rs m	410	3,146
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PMC FINCORP

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.4x during FY22, from 9.0x during FY21. 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 3.8x during FY22, from 4.7x during FY21. 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 2.5% during FY22, from 2.5% during FY22. 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 4.7% during FY22, from 4.3% during FY21. 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 2.3% during FY22, from 3.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	9.0	4.4
Debtors’ Days	Days	2	109
Interest coverage	x	4.7	3.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.1	2.3
Return on equity	%	2.5	2.5
Return on capital employed	%	4.3	4.7

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

PMC FINCORP Share Price Performance

Over the last one year, PMC FINCORP share price has moved up from Rs 1.0 to Rs 5.5, registering a gain of Rs 4.5 or around 442.2%.

Overall, the S&P BSE SENSEX is up 16.8% over the year.

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