PNGS GARGI FASHION 2023-24 Annual Report Analysis

Fri, 17 May

PNGS GARGI FASHION has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

PNGS GARGI FASHION Income Statement Analysis

• Operating income during the year rose 76.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 71.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.2% in FY24 as against 22.9% in FY23.
• Depreciation charges increased by 87.6% and finance costs decreased by 17.8% YoY, respectively.
• Other income grew by 300.0% YoY.
• Net profit for the year grew by 80.4% YoY.
• Net profit margins during the year grew from 16.4% in FY23 to 16.8% in FY24.

PNGS GARGI FASHION Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	287	505	76.1%
Other income	Rs m	2	6	300.0%
Total Revenues	Rs m	288	511	77.3%
Gross profit	Rs m	66	112	71.2%
Depreciation	Rs m	2	3	87.6%
Interest	Rs m	2	2	-17.8%
Profit before tax	Rs m	63	114	79.0%
Tax	Rs m	17	29	75.3%
Profit after tax	Rs m	47	85	80.4%
Gross profit margin	%	22.9	22.2
Effective tax rate	%	26.0	25.5
Net profit margin	%	16.4	16.8

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PNGS GARGI FASHION Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 111 million as compared to Rs 44 million in FY23, thereby witnessing an increase of 149.9%.
• Current assets rose 63% and stood at Rs 392 million, while fixed assets rose 22% and stood at Rs 17 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 410 million as against Rs 255 million during FY23, thereby witnessing a growth of 60%.

PNGS GARGI FASHION Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	206	290	41.1
Current Liabilities	Rs m	44	111	149.9
Long-term Debt	Rs m	0	0	-100.0
Total Liabilities	Rs m	255	410	60.4
Current assets	Rs m	241	392	62.7
Fixed Assets	Rs m	14	17	21.7
Total Assets	Rs m	255	410	60.4

PNGS GARGI FASHION Cash Flow Statement Analysis

• PNGS GARGI FASHION's cash flow from operating activities (CFO) during FY24 stood at Rs -117 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 12 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -106 million from the Rs 107 million net cash flows seen during FY23.

PNGS GARGI FASHION Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	17	-117	-
Cash Flow from Investing Activities	Rs m	-11	-2	-
Cash Flow from Financing Activities	Rs m	101	12	-87.8%
Net Cash Flow	Rs m	107	-106	-

Current Valuations for PNGS GARGI FASHION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.8, an improvement from the EPS of Rs 4.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 505.3, stands at 57.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.8 times, while the price to sales ratio stands at 9.6 times.
• The company's price to cash flow (P/CF) ratio stood at 43.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	29.8	52.4
TTM Earnings per share	Rs	4.9	8.8
Diluted earnings per share	Rs	4.9	8.8
Price to Cash Flow	x	19.1	43.8
TTM P/E ratio	x	19.8	57.5
Price / Book Value ratio	x	6.0	13.3
Market Cap	Rs m	1,243	3,854
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PNGS GARGI FASHION

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.5x during FY24, from 5.4x during FY23. 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 71.1x during FY24, from 33.2x during FY23. 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 29.1% during FY24, from 22.8% during FY24. 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 39.7% during FY24, from 31.7% during FY23. 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 21.0% during FY24, from 19.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	5.4	3.5
Debtors’ Days	Days	4	136
Interest coverage	x	33.2	71.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.1	21.0
Return on equity	%	22.8	29.1
Return on capital employed	%	31.7	39.7

To see how PNGS GARGI FASHION has performed over the last 5 years, please visit here.

PNGS GARGI FASHION Share Price Performance

Over the last one year, PNGS GARGI FASHION share price has moved up from Rs 119.0 to Rs 505.3, registering a gain of Rs 386.3 or around 324.6%.

Overall, the S&P BSE SENSEX is up 18.2% over the year.

(To know more, check out historical annual results for PNGS GARGI FASHION and quarterly results for PNGS GARGI FASHION)