PVR 2021-22 Annual Report Analysis

Sat, 20 Aug

PVR has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

PVR Income Statement Analysis

• Operating income during the year rose 375.3% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.8% in FY22 as against 121.8% in FY21.
• Depreciation charges increased by 6.9% and finance costs increased by 0.1% YoY, respectively.
• Other income declined by 30.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 267.0% in FY21 to 36.7% in FY22.

PVR Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,800	13,310	375.3%
Other income	Rs m	4,755	3,285	-30.9%
Total Revenues	Rs m	7,555	16,595	119.7%
Gross profit	Rs m	-3,411	1,033	NA
Depreciation	Rs m	5,748	6,144	6.9%
Interest	Rs m	4,978	4,982	0.1%
Profit before tax	Rs m	-9,383	-6,807	NA
Tax	Rs m	-1,906	-1,922	NA
Profit after tax	Rs m	-7,476	-4,885	NA
Gross profit margin	%	-121.8	7.8
Effective tax rate	%	20.3	28.2
Net profit margin	%	-267.0	-36.7

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PVR Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 14 billion as compared to Rs 11 billion in FY21, thereby witnessing an increase of 26.9%.
• Long-term debt stood at Rs 10 billion as compared to Rs 10 billion during FY21, a growth of 5.4%.
• Current assets fell 14% and stood at Rs 9 billion, while fixed assets fell 4% and stood at Rs 59 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 67 billion as against Rs 71 billion during FY21, thereby witnessing a fall of 5%.

PVR Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	18,251	13,586	-25.6
Current Liabilities	Rs m	11,305	14,345	26.9
Long-term Debt	Rs m	9,803	10,333	5.4
Total Liabilities	Rs m	71,032	67,308	-5.2
Current assets	Rs m	10,023	8,661	-13.6
Fixed Assets	Rs m	61,009	58,647	-3.9
Total Assets	Rs m	71,032	67,308	-5.2

PVR Cash Flow Statement Analysis

• PVR's cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -28 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -528 million from the Rs 4 billion net cash flows seen during FY21.

PVR Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-4,127	1,668	-
Cash Flow from Investing Activities	Rs m	-2,886	-28	-
Cash Flow from Financing Activities	Rs m	10,755	-2,168	-
Net Cash Flow	Rs m	3,742	-528	-

Current Valuations for PVR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -80.1, an improvement from the EPS of Rs -123.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,808.9, stands at -51.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.1 times, while the price to sales ratio stands at 8.3 times.
• The company's price to cash flow (P/CF) ratio stood at 72.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	46.1	218.2
TTM Earnings per share	Rs	-123.0	-80.1
Diluted earnings per share	Rs	-122.4	-80.0
Price to Cash Flow	x	-43.3	72.0
TTM P/E ratio	x	-10.0	-51.2
Price / Book Value ratio	x	3.8	6.7
Market Cap	Rs m	70,226	90,621
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PVR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY22, from 0.9x during FY21. 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 -0.4x during FY22, from -0.9x during FY21. 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 -36.0% during FY22, from -41.0% during FY22. 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 -7.6% during FY22, from -15.7% during FY21. 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 0.1% during FY22, from -3.5% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.9	0.6
Debtors’ Days	Days	400	194
Interest coverage	x	-0.9	-0.4
Debt to equity ratio	x	0.5	0.8
Return on assets	%	-3.5	0.1
Return on equity	%	-41.0	-36.0
Return on capital employed	%	-15.7	-7.6

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 1,326.6 to Rs 1,808.9, registering a gain of Rs 482.3 or around 36.4%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,903.0 (up 0.1%). Over the last one year it has moved down from 14,559.5 to 13,903.0, a loss of 656 points (down 4.5%).

Overall, the S&P BSE SENSEX is up 7.2% 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