PVR 2020-21 Annual Report Analysis

Wed, 31 Mar

PVR 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.

PVR Income Statement Analysis

• Operating income during the year fell 91.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 131.7% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 121.8% in FY21 as against 31.5% in FY20.
• Depreciation charges increased by 6.0% and finance costs increased by 3.3% YoY, respectively.
• Other income grew by 1086.6% YoY.
• Net profit for the year declined by 2829.5% YoY.
• Net profit margins during the year declined from 0.8% in FY20 to 267.0% in FY21.

PVR Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	34,144	2,800	-91.8%
Other income	Rs m	401	4,755	1,086.6%
Total Revenues	Rs m	34,545	7,555	-78.1%
Gross profit	Rs m	10,743	-3,411	-131.7%
Depreciation	Rs m	5,425	5,748	6.0%
Interest	Rs m	4,818	4,978	3.3%
Profit before tax	Rs m	901	-9,383	-1,141.0%
Tax	Rs m	627	-1,906	-403.8%
Profit after tax	Rs m	274	-7,476	-2,829.5%
Gross profit margin	%	31.5	-121.8
Effective tax rate	%	69.6	20.3
Net profit margin	%	0.8	-267.0

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PVR Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 11 billion as compared to Rs 13 billion in FY20, thereby witnessing an decrease of -12.4%.
• Long-term debt stood at Rs 10 billion as compared to Rs 9 billion during FY20, a growth of 7.3%.
• Current assets rose 33% and stood at Rs 10 billion, while fixed assets fell 6% and stood at Rs 61 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 71 billion as against Rs 72 billion during FY20, thereby witnessing a fall of 2%.

PVR Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	14,749	18,251	23.7
Current Liabilities	Rs m	12,905	11,305	-12.4
Long-term Debt	Rs m	9,134	9,803	7.3
Total Liabilities	Rs m	72,229	71,032	-1.7
Current assets	Rs m	7,536	10,023	33.0
Fixed Assets	Rs m	64,693	61,009	-5.7
Total Assets	Rs m	72,229	71,032	-1.7

PVR Cash Flow Statement Analysis

• PVR's cash flow from operating activities (CFO) during FY21 stood at Rs -4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 11 billion, an improvement of 610% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 4 billion from the Rs 2 billion net cash flows seen during FY20.

PVR 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	7,870	-4,127	-
Cash Flow from Investing Activities	Rs m	-3,903	-2,886	-
Cash Flow from Financing Activities	Rs m	-2,110	10,755	-
Net Cash Flow	Rs m	1,857	3,742	101.5%

Current Valuations for PVR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -123.0, an decline from the EPS of Rs 5.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,224.0, stands at -10.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 26.6 times.
• The company's price to cash flow (P/CF) ratio stood at -40.6 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	664.9	46.1
TTM Earnings per share	Rs	5.3	-123.0
Diluted earnings per share	Rs	4.5	-122.6
Price to Cash Flow	x	12.7	-40.6
TTM P/E ratio	x	262.3	-10.0
Price / Book Value ratio	x	5.5	3.8
Market Cap	Rs m	81,307	70,226
Dividends per share (Unadj.)	Rs	4.0	0.0

Ratio Analysis for PVR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY21, from 0.6x 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 -0.9x during FY21, from 1.2x 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 -41.0% during FY21, from 1.9% 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 -15.7% 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 -3.5% during FY21, from 7.0% 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	0.6	0.9
Debtors’ Days	Days	202	400
Interest coverage	x	1.2	-0.9
Debt to equity ratio	x	0.6	0.5
Return on assets	%	7.0	-3.5
Return on equity	%	1.9	-41.0
Return on capital employed	%	23.9	-15.7

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

PVR Share Price Performance

Over the last one year, PVR share price has moved up from Rs 1,183.8 to Rs 1,224.0, registering a gain of Rs 40.2 or around 3.4%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 11,919.9 (down 0.9%). Over the last one year it has moved up from 6,403.4 to 11,919.9, a gain of 5,517 points (up 86.1%).

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

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

Read: Latest Annual Report Analysis of PVR INOX