PNB GILTS 2023-24 Annual Report Analysis

Mon, 9 Sep

PNB GILTS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during the year 2023-24.

PNB GILTS Income Statement Analysis

• Interest income during the year rose 28.2% on a year-on-year (YoY) basis.
• Interest expenses were up by 44.9% YoY during the same period.
• Operating expenses declined by 84.4% YoY during the year.
• The company's net interest income (NII) decreased by 36.1% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 0.7% in FY24 as against 1.4% in FY23.
• Other income increased by 236.6% YoY during the year.
• Net profit for the year increased by 189.9% YoY.
• Net profit margins during the year increased to 4.4% in FY24 from -6.3% in FY23.

PNB GILTS Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	12,298	15,764	28.2%
Other Income	Rs m	6	21	236.6%
Interest Expense	Rs m	9,756	14,138	44.9%
Net Interest Income	Rs m	2,542	1,625	-36.1%
Operating Expense	Rs m	3,464	540	-84.4%
Pre-provision Operating Profit	Rs m	-916	1,105	220.7%
Provisions & Contingencies	Rs m	448	869	93.8%
Profit before tax	Rs m	-851	988	216.2%
Tax	Rs m	-78	294	474.8%
Profit after tax	Rs m	-772	694	189.9%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	1.4	0.7
Net profit margin	%	-6.3	4.4

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PNB GILTS Balance Sheet Analysis

• The company's deposits during FY24 stood at Rs 0 m as compared to Rs 0 m in FY23, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 0 m as compared to Rs 0 m during FY23, a rise of 0.0%.
• Cost of deposits for PNB GILTS rose 16.7% and stood at 22509.6%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 231.6 bn during the year from Rs 187.0 bn in FY23.
• Borrowing stood at Rs 224.0 bn, a growth of 16.4% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 245.2 bn as against Rs 214.9 bn during FY23, thereby witnessing a rise of 14.1%.

PNB GILTS Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	12,600	13,298	5.5%
Advances	Rs m	0	0	0.0%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	19283.8	22509.6
Investments	Rs m	186,979	231,644	23.9%
Borrowings	Rs m	192,384	223,990	16.4%
Total Assets	Rs m	214,872	245,248	14.1%

Current Valuations for PNB GILTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.9, an improvement from the EPS of Rs -4.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 122.9, stands at 24.0 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.7 times, while the price to income ratio stands at 1.1 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	68.3	87.6
Earnings per share (Unadj.)	Rs	-4.3	3.9
Diluted earnings per share	Rs	-4.3	3.9
Avg P/E ratio	Rs	-15.6	24.0
Avg P/ABV ratio	Rs	0.9	1.7
Avg Market Cap	Rs	12,079	16,664
Dividends per share (Unadj.)	Rs	0.00	1.00

Ratio Analysis for PNB GILTS

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 0.0x during FY24, from 0.0x during FY23. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio increased and stood at 16.84x during FY24, from 15.27x during FY23. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): PNB GILTS's capital adequacy ratio (CAR) was at 34.0% as on 31 March 2024 as compared to 31.8% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company improved and stood at 5.2% during FY24, from -6.1% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at 0.28% during FY24, from -0.36% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 6.84% during FY24, from 4.89% during FY23. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. PNB GILTS's gross NPA ratio stood at 0.0% as of 31 March 2024 compared to 0.0% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of PNB GILTS was 0.0% in financial year 2024. This compared with 0.0% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	0.0	0.0
Debt to Equity Ratio	x	15.3	16.8
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	31.8	34.0
Return on Equity	%	-6.1	5.2
Return on Assets	%	-0.4	0.3
Return on Capital Employed	%	4.9	6.8
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	0.0	0.0
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how PNB GILTS has performed over the last 5 years, please visit here.

PNB GILTS Share Price Performance

Over the last one year, PNB GILTS share price has moved up from Rs 65.9 to Rs 122.9, registering a gain of Rs 57.0 or around 86.6%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

(To know more, you can check out historical annual results for PNB GILTS here and quarterly results for PNB GILTS here)