PEARL GLOBAL 2023-24 Annual Report Analysis

Wed, 3 Jul

PEARL GLOBAL 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.

PEARL GLOBAL Income Statement Analysis

• Operating income during the year rose 8.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.4% in FY24 as against 9.1% in FY23.
• Depreciation charges increased by 26.4% and finance costs increased by 21.7% YoY, respectively.
• Other income grew by 41.9% YoY.
• Net profit for the year grew by 10.5% YoY.
• Net profit margins during the year grew from 4.8% in FY23 to 4.9% in FY24.

PEARL GLOBAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	31,584	34,362	8.8%
Other income	Rs m	228	324	41.9%
Total Revenues	Rs m	31,812	34,685	9.0%
Gross profit	Rs m	2,859	3,238	13.2%
Depreciation	Rs m	508	642	26.4%
Interest	Rs m	821	999	21.7%
Profit before tax	Rs m	1,758	1,921	9.2%
Tax	Rs m	229	229	0.3%
Profit after tax	Rs m	1,530	1,691	10.5%
Gross profit margin	%	9.1	9.4
Effective tax rate	%	13.0	11.9
Net profit margin	%	4.8	4.9

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PEARL GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 9 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 8.5%.
• Long-term debt stood at Rs 1 billion as compared to Rs 893 million during FY23, a growth of 16.7%.
• Current assets rose 10% and stood at Rs 13 billion, while fixed assets rose 12% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 20 billion as against Rs 18 billion during FY23, thereby witnessing a growth of 11%.

PEARL GLOBAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,199	7,930	10.2
Current Liabilities	Rs m	8,347	9,060	8.5
Long-term Debt	Rs m	893	1,042	16.7
Total Liabilities	Rs m	18,280	20,276	10.9
Current assets	Rs m	11,791	13,018	10.4
Fixed Assets	Rs m	6,489	7,259	11.9
Total Assets	Rs m	18,280	20,276	10.9

PEARL GLOBAL Cash Flow Statement Analysis

• PEARL GLOBAL's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 398.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion, an improvement of 24% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 718 million from the Rs 1 billion net cash flows seen during FY23.

PEARL GLOBAL 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	3,648	3,521	-3.5%
Cash Flow from Investing Activities	Rs m	-257	-1,281	-
Cash Flow from Financing Activities	Rs m	-1,998	-1,521	-
Net Cash Flow	Rs m	1,393	718	-48.4%

Current Valuations for PEARL GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.8, an decline from the EPS of Rs 70.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 745.6, stands at 19.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 17.3 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	1,458.2	788.5
TTM Earnings per share	Rs	70.6	38.8
Diluted earnings per share	Rs	35.1	38.8
Price to Cash Flow	x	8.8	17.3
TTM P/E ratio	x	11.7	19.2
Price / Book Value ratio	x	1.4	5.1
Market Cap	Rs m	10,207	40,249
Dividends per share (Unadj.)	Rs	3.8	8.8

Ratio Analysis for PEARL GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.4x 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 deteriorated and stood at 2.9x during FY24, from 3.1x 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 21.3% during FY24, from 21.3% 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 32.5% during FY24, from 31.9% 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 13.3% during FY24, from 12.9% 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	1.4	1.4
Debtors’ Days	Days	242	282
Interest coverage	x	3.1	2.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	12.9	13.3
Return on equity	%	21.3	21.3
Return on capital employed	%	31.9	32.5

To see how PEARL GLOBAL has performed over the last 5 years, please visit here.

PEARL GLOBAL Share Price Performance

Over the last one year, PEARL GLOBAL share price has moved up from Rs 616.2 to Rs 745.6, registering a gain of Rs 129.4 or around 21.0%.

Overall, the S&P BSE SENSEX is up 22.5% over the year.

(To know more, check out historical annual results for PEARL GLOBAL and quarterly results for PEARL GLOBAL)