PRIME FOCUS 2023-24 Annual Report Analysis

Wed, 16 Oct

PRIME FOCUS 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.

PRIME FOCUS Income Statement Analysis

• Operating income during the year fell 14.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 72.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.4% in FY24 as against 19.7% in FY23.
• Depreciation charges increased by 6.8% and finance costs increased by 32.6% YoY, respectively.
• Other income declined by 22.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 4.2% in FY23 to 12.4% in FY24.

PRIME FOCUS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	46,443	39,505	-14.9%
Other income	Rs m	2,795	2,169	-22.4%
Total Revenues	Rs m	49,238	41,675	-15.4%
Gross profit	Rs m	9,140	2,526	-72.4%
Depreciation	Rs m	4,667	4,984	6.8%
Interest	Rs m	4,207	5,579	32.6%
Profit before tax	Rs m	3,061	-5,867	NA
Tax	Rs m	1,117	-982	NA
Profit after tax	Rs m	1,945	-4,885	NA
Gross profit margin	%	19.7	6.4
Effective tax rate	%	36.5	16.7
Net profit margin	%	4.2	-12.4

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PRIME FOCUS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 23 billion as compared to Rs 17 billion in FY23, thereby witnessing an increase of 41.4%.
• Long-term debt down at Rs 32 billion as compared to Rs 35 billion during FY23, a fall of 9.2%.
• Current assets rose 34% and stood at Rs 31 billion, while fixed assets fell 12% and stood at Rs 38 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 70 billion as against Rs 67 billion during FY23, thereby witnessing a growth of 4%.

PRIME FOCUS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-2,652	3,317	NA
Current Liabilities	Rs m	16,535	23,374	41.4
Long-term Debt	Rs m	34,720	31,523	-9.2
Total Liabilities	Rs m	67,273	69,642	3.5
Current assets	Rs m	23,321	31,150	33.6
Fixed Assets	Rs m	43,953	38,492	-12.4
Total Assets	Rs m	67,273	69,642	3.5

PRIME FOCUS Cash Flow Statement Analysis

• PRIME FOCUS's cash flow from operating activities (CFO) during FY24 stood at Rs -327 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion, an improvement of 120% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -147 million from the Rs -842 million net cash flows seen during FY23.

PRIME FOCUS 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	2,540	-327	-
Cash Flow from Investing Activities	Rs m	-4,905	-3,166	-
Cash Flow from Financing Activities	Rs m	1,522	3,346	119.9%
Net Cash Flow	Rs m	-842	-147	-

Current Valuations for PRIME FOCUS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -16.3, an decline from the EPS of Rs 6.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 157.5, stands at -8.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.2 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 338.9 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	154.9	131.8
TTM Earnings per share	Rs	6.5	-16.3
Diluted earnings per share	Rs	6.5	-16.3
Price to Cash Flow	x	3.7	338.9
TTM P/E ratio	x	12.5	-8.2
Price / Book Value ratio	x	-9.2	10.1
Market Cap	Rs m	24,340	33,418
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PRIME FOCUS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x 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 -0.1x during FY24, from 1.7x 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 -147.3% during FY24, from -73.3% 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 declined and down at -0.8% during FY24, from 22.7% 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 1.0% during FY24, from 9.1% 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	1.4	1.3
Debtors’ Days	Days	5	4
Interest coverage	x	1.7	-0.1
Debt to equity ratio	x	-13.1	9.5
Return on assets	%	9.1	1.0
Return on equity	%	-73.3	-147.3
Return on capital employed	%	22.7	-0.8

To see how PRIME FOCUS has performed over the last 5 years, please visit here.

PRIME FOCUS Share Price Performance

Over the last one year, PRIME FOCUS share price has moved up from Rs 98.4 to Rs 157.5, registering a gain of Rs 59.1 or around 60.1%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 19,801.1 (down 0.8%). Over the last one year it has moved up from 14,503.7 to 19,801.1, a gain of 5,297 points (up 36.5%).

Overall, the S&P BSE SENSEX is up 23.2% over the year.

(To know more, check out historical annual results for PRIME FOCUS and quarterly results for PRIME FOCUS)