PARIN FURNITURE 2022-23 Annual Report Analysis

Mon, 3 Jul

PARIN FURNITURE 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.

PARIN FURNITURE Income Statement Analysis

• Operating income during the year rose 6.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 10.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.3% in FY23 as against 13.4% in FY22.
• Depreciation charges decreased by 22.8% and finance costs decreased by 0.5% YoY, respectively.
• Other income declined by 49.6% YoY.
• Net profit for the year declined by 25.6% YoY.
• Net profit margins during the year declined from 5.4% in FY22 to 3.8% in FY23.

PARIN FURNITURE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	765	812	6.1%
Other income	Rs m	11	5	-49.6%
Total Revenues	Rs m	776	817	5.3%
Gross profit	Rs m	102	92	-10.4%
Depreciation	Rs m	20	15	-22.8%
Interest	Rs m	36	36	-0.5%
Profit before tax	Rs m	57	46	-19.8%
Tax	Rs m	15	15	-4.2%
Profit after tax	Rs m	41	31	-25.6%
Gross profit margin	%	13.4	11.3
Effective tax rate	%	27.1	32.4
Net profit margin	%	5.4	3.8

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PARIN FURNITURE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 788 million as compared to Rs 463 million in FY22, thereby witnessing an increase of 70.3%.
• Long-term debt down at Rs 84 million as compared to Rs 141 million during FY22, a fall of 40.6%.
• Current assets rose 31% and stood at Rs 1 billion, while fixed assets fell 9% and stood at Rs 120 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 1 billion during FY22, thereby witnessing a growth of 26%.

PARIN FURNITURE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	525	555	5.9
Current Liabilities	Rs m	463	788	70.3
Long-term Debt	Rs m	141	84	-40.6
Total Liabilities	Rs m	1,139	1,439	26.3
Current assets	Rs m	1,005	1,319	31.3
Fixed Assets	Rs m	132	120	-9.2
Total Assets	Rs m	1,139	1,439	26.3

PARIN FURNITURE Cash Flow Statement Analysis

• PARIN FURNITURE's cash flow from operating activities (CFO) during FY23 stood at Rs -7 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 36 million, an improvement of 203% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 28 million from the Rs -9 million net cash flows seen during FY22.

PARIN FURNITURE 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	31	-7	-
Cash Flow from Investing Activities	Rs m	-5	-1	-
Cash Flow from Financing Activities	Rs m	-35	36	-
Net Cash Flow	Rs m	-9	28	-

Current Valuations for PARIN FURNITURE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an decline from the EPS of Rs 3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 77.5, stands at 28.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 30.1 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	68.8	73.0
TTM Earnings per share	Rs	3.7	2.8
Diluted earnings per share	Rs	3.7	2.8
Price to Cash Flow	x	0.0	30.1
TTM P/E ratio	x	0.0	28.0
Price / Book Value ratio	x	1.5	2.5
Market Cap	Rs m	767	1,394
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PARIN FURNITURE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY23, from 2.2x 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 deteriorated and stood at 2.3x during FY23, from 2.6x 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 5.5% during FY23, from 7.9% 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 12.8% during FY23, from 14.0% 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 4.6% during FY23, from 6.8% 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	2.2	1.7
Debtors’ Days	Days	2,164	2,601
Interest coverage	x	2.6	2.3
Debt to equity ratio	x	0.3	0.2
Return on assets	%	6.8	4.6
Return on equity	%	7.9	5.5
Return on capital employed	%	14.0	12.8

To see how PARIN FURNITURE has performed over the last 5 years, please visit here.

PARIN FURNITURE Share Price Performance

Over the last one year, PARIN FURNITURE share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 0.5% over the year.

(To know more, check out historical annual results for PARIN FURNITURE and quarterly results for PARIN FURNITURE)