PURAVANKARA 2020-21 Annual Report Analysis

Wed, 31 Mar

PURAVANKARA 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.

PURAVANKARA Income Statement Analysis

• Operating income during the year fell 54.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 37.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.5% in FY21 as against 21.2% in FY20.
• Depreciation charges decreased by 10.6% and finance costs increased by 4.0% YoY, respectively.
• Other income grew by 58.1% YoY.
• Net profit for the year declined by 102.4% YoY.
• Net profit margins during the year declined from 4.3% in FY20 to 0.2% in FY21.

PURAVANKARA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	21,284	9,607	-54.9%
Other income	Rs m	589	931	58.1%
Total Revenues	Rs m	21,873	10,538	-51.8%
Gross profit	Rs m	4,504	2,837	-37.0%
Depreciation	Rs m	228	204	-10.6%
Interest	Rs m	3,431	3,569	4.0%
Profit before tax	Rs m	1,434	-4	-100.3%
Tax	Rs m	520	18	-96.6%
Profit after tax	Rs m	914	-22	-102.4%
Gross profit margin	%	21.2	29.5
Effective tax rate	%	36.3	-434.1
Net profit margin	%	4.3	-0.2

Emerging Opportunity: Our Research Hints at a Potential Massive Bull Run in...

PURAVANKARA Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 59 billion as compared to Rs 60 billion in FY20, thereby witnessing an decrease of -0.6%.
• Long-term debt stood at Rs 5 billion as compared to Rs 1 billion during FY20, a growth of 352.3%.
• Current assets rose 6% and stood at Rs 74 billion, while fixed assets fell 6% and stood at Rs 10 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 84 billion as against Rs 81 billion during FY20, thereby witnessing a growth of 4%.

PURAVANKARA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	19,139	19,078	-0.3
Current Liabilities	Rs m	59,714	59,346	-0.6
Long-term Debt	Rs m	1,198	5,420	352.3
Total Liabilities	Rs m	80,806	84,228	4.2
Current assets	Rs m	69,731	73,810	5.8
Fixed Assets	Rs m	11,076	10,418	-5.9
Total Assets	Rs m	80,806	84,228	4.2

PURAVANKARA Cash Flow Statement Analysis

• PURAVANKARA's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 239 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion, an improvement of 63% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 552 million from the Rs -236 million net cash flows seen during FY20.

PURAVANKARA 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	5,782	2,443	-57.7%
Cash Flow from Investing Activities	Rs m	-225	239	-
Cash Flow from Financing Activities	Rs m	-5,792	-2,130	-
Net Cash Flow	Rs m	-236	552	-

Current Valuations for PURAVANKARA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.1, an decline from the EPS of Rs 3.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 70.4, stands at -762.3 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 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 83.2 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	89.7	40.5
TTM Earnings per share	Rs	3.9	-0.1
Diluted earnings per share	Rs	3.9	-0.1
Price to Cash Flow	x	7.3	83.2
TTM P/E ratio	x	9.1	-762.3
Price / Book Value ratio	x	0.7	0.8
Market Cap	Rs m	13,716	15,139
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PURAVANKARA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY21, from 1.2x 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 1.0x during FY21, from 1.4x 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 declined and down at -0.1% during FY21, from 4.8% 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 declined and down at 14.6% during FY21, from 23.9% 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 declined and down at 4.2% during FY21, from 5.4% 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	1.2	1.2
Debtors’ Days	Days	5	12
Interest coverage	x	1.4	1.0
Debt to equity ratio	x	0.1	0.3
Return on assets	%	5.4	4.2
Return on equity	%	4.8	-0.1
Return on capital employed	%	23.9	14.6

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

PURAVANKARA Share Price Performance

Over the last one year, PURAVANKARA share price has moved up from Rs 35.0 to Rs 70.4, registering a gain of Rs 35.4 or around 101.1%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

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

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

Read: Latest Annual Report Analysis of PURAVANKARA