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PTL ENTERPRISES 2022-23 Annual Report Analysis

Fri, 31 Mar

PTL ENTERPRISES 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.

PTL ENTERPRISES Income Statement Analysis

• Operating income during the year rose 1.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 90.0% in FY23 as against 90.1% in FY22.
• Depreciation charges increased by 13.5% and finance costs decreased by 8.0% YoY, respectively.
• Other income declined by 0.2% YoY.
• Net profit for the year declined by 29.4% YoY.
• Net profit margins during the year declined from 52.2% in FY22 to 36.2% in FY23.

PTL ENTERPRISES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	632	643	1.8%
Other income	Rs m	42	42	-0.2%
Total Revenues	Rs m	674	685	1.7%
Gross profit	Rs m	570	579	1.7%
Depreciation	Rs m	18	21	13.5%
Interest	Rs m	73	67	-8.0%
Profit before tax	Rs m	521	533	2.5%
Tax	Rs m	191	301	57.7%
Profit after tax	Rs m	330	233	-29.4%
Gross profit margin	%	90.1	90.0
Effective tax rate	%	36.6	56.4
Net profit margin	%	52.2	36.2

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PTL ENTERPRISES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 231 million in FY22, thereby witnessing an increase of 951.7%.
• Long-term debt down at Rs 206 million as compared to Rs 434 million during FY22, a fall of 52.5%.
• Current assets rose 939% and stood at Rs 2 billion, while fixed assets fell 3% and stood at Rs 10 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 12 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 16%.

PTL ENTERPRISES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,826	6,997	20.1
Current Liabilities	Rs m	231	2,431	951.7
Long-term Debt	Rs m	434	206	-52.5
Total Liabilities	Rs m	10,105	11,733	16.1
Current assets	Rs m	208	2,162	938.8
Fixed Assets	Rs m	9,897	9,572	-3.3
Total Assets	Rs m	10,105	11,733	16.1

PTL ENTERPRISES Cash Flow Statement Analysis

• PTL ENTERPRISES's cash flow from operating activities (CFO) during FY23 stood at Rs 426 million, an improvement of 4.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 38 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -518 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -54 million from the Rs 61 million net cash flows seen during FY22.

PTL ENTERPRISES 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	408	426	4.3%
Cash Flow from Investing Activities	Rs m	-143	38	-
Cash Flow from Financing Activities	Rs m	-205	-518	-
Net Cash Flow	Rs m	61	-54	-

Current Valuations for PTL ENTERPRISES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.8, an decline from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 30.4, stands at 17.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 6.3 times.
• The company's price to cash flow (P/CF) ratio stood at 17.6 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	4.8	4.9
TTM Earnings per share	Rs	2.5	1.8
Diluted earnings per share	Rs	2.5	1.8
Price to Cash Flow	x	12.6	17.6
TTM P/E ratio	x	13.3	17.3
Price / Book Value ratio	x	1.0	0.6
Market Cap	Rs m	5,636	4,458
Dividends per share (Unadj.)	Rs	2.0	1.8

Ratio Analysis for PTL ENTERPRISES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY23, from 0.9x 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 8.9x during FY23, from 8.1x 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 declined and down at 3.3% during FY23, from 5.7% 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 declined and down at 8.3% during FY23, from 9.5% 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 declined and down at 2.6% during FY23, from 4.0% 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	0.9	0.9
Debtors’ Days	Days	0	0
Interest coverage	x	8.1	8.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	4.0	2.6
Return on equity	%	5.7	3.3
Return on capital employed	%	9.5	8.3

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 down from Rs 33.2 to Rs 30.4, registering a loss of Rs 2.8 or around 8.4%.

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

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