PTL ENTERPRISES 2020-21 Annual Report Analysis

Wed, 31 Mar

PTL ENTERPRISES 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.

PTL ENTERPRISES Income Statement Analysis

• Operating income during the year fell 0.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 50.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 137.3% in FY21 as against 91.4% in FY20.
• Depreciation charges increased by 28.4% and finance costs increased by 232.0% YoY, respectively.
• Other income grew by 106.8% YoY.
• Net profit for the year grew by 59.4% YoY.
• Net profit margins during the year grew from 69.5% in FY20 to 110.8% in FY21.

PTL ENTERPRISES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	632	632	0.0%
Other income	Rs m	36	74	106.8%
Total Revenues	Rs m	668	706	5.7%
Gross profit	Rs m	578	868	50.1%
Depreciation	Rs m	12	16	28.4%
Interest	Rs m	21	70	232.0%
Profit before tax	Rs m	580	855	47.4%
Tax	Rs m	141	155	10.0%
Profit after tax	Rs m	439	700	59.4%
Gross profit margin	%	91.4	137.3
Effective tax rate	%	24.3	18.1
Net profit margin	%	69.5	110.8

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PTL ENTERPRISES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 229 million as compared to Rs 193 million in FY20, thereby witnessing an increase of 18.8%.
• Long-term debt stood at Rs 449 million as compared to Rs 0 million during FY20, a fall of 0.0%.
• Current assets rose 931% and stood at Rs 522 million, while fixed assets rose 22% and stood at Rs 10 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 10 billion as against Rs 8 billion during FY20, thereby witnessing a growth of 28%.

PTL ENTERPRISES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	4,471	5,953	33.2
Current Liabilities	Rs m	193	229	18.8
Long-term Debt	Rs m	0	449	0.0
Total Liabilities	Rs m	8,019	10,275	28.1
Current assets	Rs m	51	522	930.5
Fixed Assets	Rs m	7,969	9,752	22.4
Total Assets	Rs m	8,019	10,275	28.1

PTL ENTERPRISES Cash Flow Statement Analysis

• PTL ENTERPRISES's cash flow from operating activities (CFO) during FY21 stood at Rs 403 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -684 million, an improvement of 924.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 280 million, an improvement of 170% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -1 million from the Rs -4 million net cash flows seen during FY20.

PTL ENTERPRISES 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	462	403	-12.8%
Cash Flow from Investing Activities	Rs m	-67	-684	-
Cash Flow from Financing Activities	Rs m	-399	280	-
Net Cash Flow	Rs m	-4	-1	-

Current Valuations for PTL ENTERPRISES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.6, an improvement from the EPS of Rs 6.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 38.8, stands at 7.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 3.6 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	9.6	9.6
TTM Earnings per share	Rs	6.6	10.6
Diluted earnings per share	Rs	3.3	5.3
Price to Cash Flow	x	8.2	3.6
TTM P/E ratio	x	8.4	7.3
Price / Book Value ratio	x	0.5	0.4
Market Cap	Rs m	2,267	2,570
Dividends per share (Unadj.)	Rs	1.3	2.5

Ratio Analysis for PTL ENTERPRISES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY21, from 0.3x 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 deteriorated and stood at 13.2x during FY21, from 28.4x 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 11.8% during FY21, from 9.8% 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 14.5% during FY21, from 13.4% 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 7.5% during FY21, from 5.7% 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	0.3	2.3
Debtors’ Days	Days	0	0
Interest coverage	x	28.4	13.2
Debt to equity ratio	x	0.0	0.1
Return on assets	%	5.7	7.5
Return on equity	%	9.8	11.8
Return on capital employed	%	13.4	14.5

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

PTL ENTERPRISES Share Price Performance

Over the last one year, PTL ENTERPRISES share price has moved up from Rs 27.9 to Rs 38.8, registering a gain of Rs 11.0 or around 39.3%.

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

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

Read: Latest Annual Report Analysis of PTL ENTERPRISES