PRAVEG COMM 2022-23 Annual Report Analysis

Fri, 31 Mar

PRAVEG COMM 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.

PRAVEG COMM Income Statement Analysis

• Operating income during the year rose 86.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 127.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 53.2% in FY23 as against 43.6% in FY22.
• Depreciation charges increased by 127.2% and finance costs increased by 37.7% YoY, respectively.
• Other income grew by 804.8% YoY.
• Net profit for the year grew by 132.3% YoY.
• Net profit margins during the year grew from 27.1% in FY22 to 33.7% in FY23.

PRAVEG COMM Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	453	845	86.7%
Other income	Rs m	0	4	804.8%
Total Revenues	Rs m	453	849	87.4%
Gross profit	Rs m	197	449	127.8%
Depreciation	Rs m	27	61	127.2%
Interest	Rs m	5	7	37.7%
Profit before tax	Rs m	166	385	132.4%
Tax	Rs m	43	101	132.6%
Profit after tax	Rs m	122	284	132.3%
Gross profit margin	%	43.6	53.2
Effective tax rate	%	26.2	26.2
Net profit margin	%	27.1	33.7

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PRAVEG COMM Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 121 million as compared to Rs 83 million in FY22, thereby witnessing an increase of 46.6%.
• Long-term debt down at Rs 0 million as compared to Rs 3 million during FY22, a fall of 85.4%.
• Current assets rose 182% and stood at Rs 598 million, while fixed assets rose 304% and stood at Rs 657 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 374 million during FY22, thereby witnessing a growth of 235%.

PRAVEG COMM Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	276	1,044	278.3
Current Liabilities	Rs m	83	121	46.6
Long-term Debt	Rs m	3	0	-85.4
Total Liabilities	Rs m	374	1,255	235.1
Current assets	Rs m	212	598	182.5
Fixed Assets	Rs m	163	657	303.6
Total Assets	Rs m	374	1,255	235.1

PRAVEG COMM Cash Flow Statement Analysis

• PRAVEG COMM's cash flow from operating activities (CFO) during FY23 stood at Rs 253 million, an improvement of 282.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -726 million, an improvement of 453.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 521 million, an improvement of 2,220% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 47 million from the Rs -90 million net cash flows seen during FY22.

PRAVEG COMM 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	66	253	282.2%
Cash Flow from Investing Activities	Rs m	-131	-726	-
Cash Flow from Financing Activities	Rs m	-25	521	-
Net Cash Flow	Rs m	-90	47	-

Current Valuations for PRAVEG COMM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.6, an improvement from the EPS of Rs 6.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 465.3, stands at 37.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.2 times, while the price to sales ratio stands at 11.5 times.
• The company's price to cash flow (P/CF) ratio stood at 22.2 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	24.5	40.4
TTM Earnings per share	Rs	6.6	13.6
Diluted earnings per share	Rs	5.4	12.4
Price to Cash Flow	x	20.7	22.2
TTM P/E ratio	x	25.3	37.4
Price / Book Value ratio	x	7.6	7.4
Market Cap	Rs m	2,101	7,678
Dividends per share (Unadj.)	Rs	4.0	4.5

Ratio Analysis for PRAVEG COMM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.9x during FY23, from 2.6x 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 56.8x during FY23, from 34.1x 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 27.2% during FY23, from 44.4% 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 declined and down at 37.5% during FY23, from 61.2% 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 23.2% during FY23, from 34.0% 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	2.6	4.9
Debtors’ Days	Days	1,104	703
Interest coverage	x	34.1	56.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	34.0	23.2
Return on equity	%	44.4	27.2
Return on capital employed	%	61.2	37.5

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

PRAVEG COMM Share Price Performance

Over the last one year, PRAVEG COMM share price has moved up from Rs 135.4 to Rs 465.3, registering a gain of Rs 329.9 or around 243.6%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 12,978.0 (up 2.2%). Over the last one year it has moved down from 16,247.8 to 12,978.0, a loss of 3,270 points (down 20.1%).

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

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