PVR INOX 2022-23 Annual Report Analysis

Tue, 5 Sep

PVR INOX 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.

PVR INOX Income Statement Analysis

• Operating income during the year rose 182.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 904.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.6% in FY23 as against 7.7% in FY22.
• Depreciation charges increased by 22.6% and finance costs increased by 14.8% YoY, respectively.
• Other income declined by 75.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 36.7% in FY22 to 9.0% in FY23.

PVR INOX Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,294	37,507	182.1%
Other income	Rs m	3,285	815	-75.2%
Total Revenues	Rs m	16,579	38,321	131.1%
Gross profit	Rs m	1,030	10,345	904.3%
Depreciation	Rs m	6,144	7,533	22.6%
Interest	Rs m	4,978	5,716	14.8%
Profit before tax	Rs m	-6,807	-2,090	NA
Tax	Rs m	-1,922	1,274	NA
Profit after tax	Rs m	-4,885	-3,364	NA
Gross profit margin	%	7.7	27.6
Effective tax rate	%	28.2	-61.0
Net profit margin	%	-36.7	-9.0

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

PVR INOX Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 21 billion as compared to Rs 14 billion in FY22, thereby witnessing an increase of 43.0%.
• Long-term debt stood at Rs 13 billion as compared to Rs 10 billion during FY22, a growth of 23.1%.
• Current assets fell 2% and stood at Rs 8 billion, while fixed assets rose 158% and stood at Rs 151 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 160 billion as against Rs 67 billion during FY22, thereby witnessing a growth of 138%.

PVR INOX Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	13,586	73,064	437.8
Current Liabilities	Rs m	14,345	20,513	43.0
Long-term Debt	Rs m	10,333	12,723	23.1
Total Liabilities	Rs m	67,308	159,997	137.7
Current assets	Rs m	8,661	8,498	-1.9
Fixed Assets	Rs m	58,647	151,499	158.3
Total Assets	Rs m	67,308	159,997	137.7

PVR INOX Cash Flow Statement Analysis

• PVR INOX's cash flow from operating activities (CFO) during FY23 stood at Rs 9 billion, an improvement of 418.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -6 billion, an improvement of 20,393.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 billion from the Rs -528 million net cash flows seen during FY22.

PVR INOX 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	1,668	8,639	418.0%
Cash Flow from Investing Activities	Rs m	-28	-5,759	-
Cash Flow from Financing Activities	Rs m	-2,168	-6,935	-
Net Cash Flow	Rs m	-528	-1,677	-

Current Valuations for PVR INOX

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -34.3, an improvement from the EPS of Rs -80.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,800.0, stands at -37.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 4.7 times.
• The company's price to cash flow (P/CF) ratio stood at 43.3 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	217.9	382.8
TTM Earnings per share	Rs	-80.1	-34.3
Diluted earnings per share	Rs	-49.9	-34.3
Price to Cash Flow	x	149.5	43.3
TTM P/E ratio	x	-38.5	-37.4
Price / Book Value ratio	x	6.7	2.5
Market Cap	Rs m	90,621	180,399
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PVR INOX

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY23, from 0.6x 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 0.6x during FY23, from -0.4x 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 improved and stood at -4.6% during FY23, from -36.0% 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 improved and stood at 4.2% during FY23, from -7.6% 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 improved and stood at 1.5% during FY23, from 0.1% 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	0.6	0.4
Debtors’ Days	Days	224	178
Interest coverage	x	-0.4	0.6
Debt to equity ratio	x	0.8	0.2
Return on assets	%	0.1	1.5
Return on equity	%	-36.0	-4.6
Return on capital employed	%	-7.6	4.2

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

PVR INOX Share Price Performance

Over the last one year, PVR INOX share price has moved down from Rs 1,940.1 to Rs 1,800.0, registering a loss of Rs 140.1 or around 7.2%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 14,486.0 (up 0.6%). Over the last one year it has moved up from 13,095.8 to 14,486.0, a gain of 1,390 points (up 10.6%).

Overall, the S&P BSE SENSEX is up 11.9% over the year.

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