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PURAVANKARA 2022-23 Annual Report Analysis

Mon, 2 Oct

PURAVANKARA 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.

PURAVANKARA Income Statement Analysis

• Operating income during the year rose 29.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 25.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.1% in FY23 as against 21.8% in FY22.
• Depreciation charges decreased by 2.9% and finance costs increased by 8.4% YoY, respectively.
• Other income declined by 59.9% YoY.
• Net profit for the year declined by 54.9% YoY.
• Net profit margins during the year declined from 15.5% in FY22 to 5.4% in FY23.

PURAVANKARA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,547	12,358	29.4%
Other income	Rs m	4,270	1,712	-59.9%
Total Revenues	Rs m	13,817	14,070	1.8%
Gross profit	Rs m	2,083	2,610	25.3%
Depreciation	Rs m	176	171	-2.9%
Interest	Rs m	3,319	3,597	8.4%
Profit before tax	Rs m	2,858	554	-80.6%
Tax	Rs m	1,382	-111	NA
Profit after tax	Rs m	1,476	665	-54.9%
Gross profit margin	%	21.8	21.1
Effective tax rate	%	48.4	-20.0
Net profit margin	%	15.5	5.4

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PURAVANKARA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 76 billion as compared to Rs 60 billion in FY22, thereby witnessing an increase of 27.6%.
• Long-term debt down at Rs 5 billion as compared to Rs 6 billion during FY22, a fall of 18.5%.
• Current assets rose 17% and stood at Rs 90 billion, while fixed assets rose 14% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 101 billion as against Rs 87 billion during FY22, thereby witnessing a growth of 16%.

PURAVANKARA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	20,421	19,868	-2.7
Current Liabilities	Rs m	59,558	75,998	27.6
Long-term Debt	Rs m	5,720	4,664	-18.5
Total Liabilities	Rs m	87,226	101,270	16.1
Current assets	Rs m	77,162	90,470	17.2
Fixed Assets	Rs m	9,508	10,800	13.6
Total Assets	Rs m	87,226	101,270	16.1

PURAVANKARA Cash Flow Statement Analysis

• PURAVANKARA's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 8.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 948 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion, an improvement of 73% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 991 million from the Rs 1 billion net cash flows seen during FY22.

PURAVANKARA 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	1,337	1,452	8.6%
Cash Flow from Investing Activities	Rs m	5,255	948	-82.0%
Cash Flow from Financing Activities	Rs m	-5,286	-1,409	-
Net Cash Flow	Rs m	1,305	991	-24.1%

Current Valuations for PURAVANKARA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an decline from the EPS of Rs 6.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 131.5, stands at -185.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 25.3 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	40.2	52.1
TTM Earnings per share	Rs	6.2	2.8
Diluted earnings per share	Rs	6.2	2.8
Price to Cash Flow	x	15.3	25.3
TTM P/E ratio	x	16.5	-185.7
Price / Book Value ratio	x	1.3	1.1
Market Cap	Rs m	27,201	21,164
Dividends per share (Unadj.)	Rs	5.0	0.0

Ratio Analysis for PURAVANKARA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.3x 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 deteriorated and stood at 1.2x during FY23, from 1.9x 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 7.2% 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 16.9% during FY23, from 23.6% 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 4.2% during FY23, from 5.5% 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	1.3	1.2
Debtors’ Days	Days	9	16
Interest coverage	x	1.9	1.2
Debt to equity ratio	x	0.3	0.2
Return on assets	%	5.5	4.2
Return on equity	%	7.2	3.3
Return on capital employed	%	23.6	16.9

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 94.2 to Rs 131.5, registering a gain of Rs 37.3 or around 39.6%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,605.9 (up 0.9%). Over the last one year it has moved up from 3,376.9 to 4,605.9, a gain of 1,229 points (up 36.4%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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