P&G HYGIENE 2022-23 Annual Report Analysis

Fri, 30 Jun

P&G HYGIENE has announced its results for the year ended June 2023. Let us have a look at the detailed performance review of the company during FY22-23.

P&G HYGIENE Income Statement Analysis

• Operating income during the year rose 0.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.1% in FY as against 21.1% in FY.
• Depreciation charges increased by 10.4% and finance costs increased by 1.7% YoY, respectively.
• Other income grew by 51.7% YoY.
• Net profit for the year grew by 17.8% YoY.
• Net profit margins during the year grew from 14.8% in FY to 17.3% in FY.

P&G HYGIENE Income Statement 2022-23

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*	% Change
Net Sales	Rs m	39,009	39,179	0.4%
Other income	Rs m	298	452	51.7%
Total Revenues	Rs m	39,307	39,631	0.8%
Gross profit	Rs m	8,244	8,640	4.8%
Depreciation	Rs m	529	584	10.4%
Interest	Rs m	112	114	1.7%
Profit before tax	Rs m	7,901	8,395	6.2%
Tax	Rs m	2,144	1,613	-24.7%
Profit after tax	Rs m	5,758	6,781	17.8%
Gross profit margin	%	21.1	22.1
Effective tax rate	%	27.1	19.2
Net profit margin	%	14.8	17.3

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P&G HYGIENE Balance Sheet Analysis

• The company's current liabilities during FY stood at Rs 11 billion as compared to Rs 9 billion in FY, thereby witnessing an increase of 26.2%.
• Current assets rose 32% and stood at Rs 15 billion, while fixed assets rose 16% and stood at Rs 6 billion in FY.
• Overall, the total assets and liabilities for FY stood at Rs 21 billion as against Rs 16 billion during FY, thereby witnessing a growth of 27%.

P&G HYGIENE Balance Sheet as on June 2023

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*	% Change
Networth	Rs m	6,977	8,977	28.7
Current Liabilities	Rs m	8,596	10,850	26.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	16,307	20,718	27.0
Current assets	Rs m	11,351	14,957	31.8
Fixed Assets	Rs m	4,956	5,761	16.2
Total Assets	Rs m	16,307	20,718	27.0

P&G HYGIENE Cash Flow Statement Analysis

• P&G HYGIENE's cash flow from operating activities (CFO) during FY stood at Rs 8 billion, an improvement of 44.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY stood at Rs -99 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY stood at Rs -5 billion, an improvement of 16% on a YoY basis.
• Overall, net cash flows for the company during FY stood at Rs 3 billion from the Rs -227 million net cash flows seen during FY.

P&G HYGIENE Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Jun-22	Jun-23
Cash Flow from Operating Activities	Rs m	5,731	8,258	44.1%
Cash Flow from Investing Activities	Rs m	-269	-99	-
Cash Flow from Financing Activities	Rs m	-5,689	-4,770	-
Net Cash Flow	Rs m	-227	3,389	-

Current Valuations for P&G HYGIENE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 208.9, an improvement from the EPS of Rs 177.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 14,304.4, stands at 68.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 51.7 times, while the price to sales ratio stands at 11.9 times.
• The company's price to cash flow (P/CF) ratio stood at 63.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*
Sales per share (Unadj.)	Rs	1,201.8	1,207.0
TTM Earnings per share	Rs	177.4	208.9
Diluted earnings per share	Rs	177.4	208.9
Price to Cash Flow	x	69.2	63.0
TTM P/E ratio	x	75.6	68.5
Price / Book Value ratio	x	67.0	51.7
Market Cap	Rs m	467,574	464,205
Dividends per share (Unadj.)	Rs	160.0	185.0

Ratio Analysis for P&G HYGIENE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY, from 1.3x during FY. 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 74.8x during FY, from 71.6x during FY. 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 75.5% during FY, from 82.5% during FY. 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 declined and down at 94.8% during FY, from 114.8% during FY. 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 33.3% during FY, from 36.0% during FY. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Jun-22*	12 Jun-23*
Current ratio	x	1.3	1.4
Debtors’ Days	Days	180	201
Interest coverage	x	71.6	74.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	36.0	33.3
Return on equity	%	82.5	75.5
Return on capital employed	%	114.8	94.8

To see how P&G HYGIENE has performed over the last 5 years, please visit here.

P&G HYGIENE Share Price Performance

Over the last one year, P&G HYGIENE share price has moved down from Rs 14,417.7 to Rs 13,358.5, registering a loss of Rs 1,059.3 or around 7.3%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 16,487.0 (up 1.1%). Over the last one year it has moved up from 13,334.9 to 16,487.0, a gain of 3,152 points (up 23.6%).

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

(To know more, check out historical annual results for P&G HYGIENE and quarterly results for P&G HYGIENE)