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PC JEWELLER 2023-24 Annual Report Analysis

Tue, 15 Oct

PC JEWELLER 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.

PC JEWELLER Income Statement Analysis

• Operating income during the year fell 75.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 28.2% in FY24 as against 10.3% in FY23.
• Depreciation charges decreased by 25.2% and finance costs increased by 1.1% YoY, respectively.
• Other income declined by 60.5% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 8.2% in FY23 to 104.0% in FY24.

PC JEWELLER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	24,727	6,054	-75.5%
Other income	Rs m	1,633	645	-60.5%
Total Revenues	Rs m	26,359	6,699	-74.6%
Gross profit	Rs m	2,554	-1,708	NA
Depreciation	Rs m	272	204	-25.2%
Interest	Rs m	4,993	5,050	1.1%
Profit before tax	Rs m	-1,079	-6,318	NA
Tax	Rs m	953	-24	NA
Profit after tax	Rs m	-2,032	-6,294	NA
Gross profit margin	%	10.3	-28.2
Effective tax rate	%	-88.3	0.4
Net profit margin	%	-8.2	-104.0

For Investors: Our Big Prediction

PC JEWELLER Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 43 billion as compared to Rs 39 billion in FY23, thereby witnessing an increase of 11.0%.
• Long-term debt stood at Rs 4 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets fell 7% and stood at Rs 59 billion, while fixed assets rose 5% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 73 billion as against Rs 76 billion during FY23, thereby witnessing a fall of 5%.

PC JEWELLER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	36,733	29,314	-20.2
Current Liabilities	Rs m	38,650	42,915	11.0
Long-term Debt	Rs m	0	4	0.0
Total Liabilities	Rs m	76,312	72,617	-4.8
Current assets	Rs m	63,133	58,787	-6.9
Fixed Assets	Rs m	13,179	13,831	4.9
Total Assets	Rs m	76,312	72,617	-4.8

PC JEWELLER Cash Flow Statement Analysis

• PC JEWELLER's cash flow from operating activities (CFO) during FY24 stood at Rs 639 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 71 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 3% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -372 million from the Rs 185 million net cash flows seen during FY23.

PC JEWELLER 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	995	639	-35.8%
Cash Flow from Investing Activities	Rs m	299	71	-76.4%
Cash Flow from Financing Activities	Rs m	-1,109	-1,081	-
Net Cash Flow	Rs m	185	-372	-

Current Valuations for PC JEWELLER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -13.5, an decline from the EPS of Rs -4.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 168.5, stands at -26.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 12.9 times.
• The company's price to cash flow (P/CF) ratio stood at -3.4 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	53.1	13.0
TTM Earnings per share	Rs	-4.4	-13.5
Diluted earnings per share	Rs	-4.4	-13.5
Price to Cash Flow	x	-7.1	-3.4
TTM P/E ratio	x	-6.1	-26.0
Price / Book Value ratio	x	0.8	0.7
Market Cap	Rs m	28,762	20,920
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PC JEWELLER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 1.6x 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 deteriorated and stood at -0.3x during FY24, from 0.8x 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 declined and down at -21.5% during FY24, from -5.5% 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 declined and down at -4.3% during FY24, from 10.7% 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 declined and down at -1.7% during FY24, from 3.9% 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	1.6	1.4
Debtors’ Days	Days	6	11
Interest coverage	x	0.8	-0.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.9	-1.7
Return on equity	%	-5.5	-21.5
Return on capital employed	%	10.7	-4.3

To see how PC JEWELLER has performed over the last 5 years, please visit here.

PC JEWELLER Share Price Performance

Over the last one year, PC JEWELLER share price has moved up from Rs 30.1 to Rs 168.5, registering a gain of Rs 138.4 or around 459.6%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

(To know more, check out historical annual results for PC JEWELLER and quarterly results for PC JEWELLER)