PVP VENTURES 2022-23 Annual Report Analysis

Wed, 28 Feb

PVP VENTURES 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.

PVP VENTURES Income Statement Analysis

• Operating income during the year rose 260.3% 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 155.6% in FY23 as against 55.3% in FY22.
• Depreciation charges increased by 29.4% and finance costs decreased by 85.2% YoY, respectively.
• Other income declined by 46.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 195.3% in FY22 to 135.3% in FY23.

PVP VENTURES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	488	1,757	260.3%
Other income	Rs m	8	4	-46.6%
Total Revenues	Rs m	495	1,761	255.6%
Gross profit	Rs m	-270	2,734	NA
Depreciation	Rs m	9	11	29.4%
Interest	Rs m	682	101	-85.2%
Profit before tax	Rs m	-952	2,626	NA
Tax	Rs m	0	248	1,239,300.0%
Profit after tax	Rs m	-952	2,378	NA
Gross profit margin	%	-55.3	155.6
Effective tax rate	%	0.0	9.4
Net profit margin	%	-195.3	135.3

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PVP VENTURES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 973 million as compared to Rs 6 billion in FY22, thereby witnessing an decrease of -82.4%.
• Long-term debt down at Rs 693 million as compared to Rs 1 billion during FY22, a fall of 45.4%.
• Current assets fell 13% and stood at Rs 3 billion, while fixed assets fell 83% and stood at Rs 230 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 5 billion during FY22, thereby witnessing a fall of 32%.

PVP VENTURES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-457	1,481	NA
Current Liabilities	Rs m	5,513	973	-82.4
Long-term Debt	Rs m	1,269	693	-45.4
Total Liabilities	Rs m	4,981	3,407	-31.6
Current assets	Rs m	3,661	3,177	-13.2
Fixed Assets	Rs m	1,320	230	-82.6
Total Assets	Rs m	4,981	3,407	-31.6

PVP VENTURES Cash Flow Statement Analysis

• PVP VENTURES's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 1,471.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 14 million from the Rs -36 million net cash flows seen during FY22.

PVP VENTURES 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	-131	3,273	-
Cash Flow from Investing Activities	Rs m	-79	-1,234	-
Cash Flow from Financing Activities	Rs m	173	-2,026	-
Net Cash Flow	Rs m	-36	14	-

Current Valuations for PVP VENTURES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.7, an improvement from the EPS of Rs -3.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7.4, stands at 0.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 0.9 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	2.0	7.2
TTM Earnings per share	Rs	-3.9	9.7
Diluted earnings per share	Rs	-3.7	9.1
Price to Cash Flow	x	-1.4	0.9
TTM P/E ratio	x	-1.4	0.8
Price / Book Value ratio	x	-3.8	1.4
Market Cap	Rs m	1,736	2,040
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PVP VENTURES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.3x during FY23, from 0.7x 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 27.0x 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 declined and down at 160.6% during FY23, from 208.4% 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 125.4% during FY23, from -33.3% 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 72.8% during FY23, from -5.4% 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	0.7	3.3
Debtors’ Days	Days	127	42
Interest coverage	x	-0.4	27.0
Debt to equity ratio	x	-2.8	0.5
Return on assets	%	-5.4	72.8
Return on equity	%	208.4	160.6
Return on capital employed	%	-33.3	125.4

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

PVP VENTURES Share Price Performance

Over the last one year, PVP VENTURES share price has moved up from Rs 5.0 to Rs 7.4, registering a gain of Rs 2.4 or around 48.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,101.6 (up 1.6%). Over the last one year it has moved down from 3,681.8 to 3,101.6, a loss of 580 points (down 15.8%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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