PCBL 2023-24 Annual Report Analysis

Wed, 7 Aug

PCBL 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.

PCBL Income Statement Analysis

• Operating income during the year rose 11.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 38.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.4% in FY24 as against 12.4% in FY23.
• Depreciation charges increased by 58.9% and finance costs increased by 238.5% YoY, respectively.
• Other income grew by 50.4% YoY.
• Net profit for the year grew by 11.1% YoY.
• Net profit margins during the year declined from 7.7% in FY23 to 7.6% in FY24.

PCBL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	57,741	64,198	11.2%
Other income	Rs m	570	857	50.4%
Total Revenues	Rs m	58,310	65,055	11.6%
Gross profit	Rs m	7,149	9,887	38.3%
Depreciation	Rs m	1,367	2,173	58.9%
Interest	Rs m	534	1,808	238.5%
Profit before tax	Rs m	5,817	6,763	16.3%
Tax	Rs m	1,395	1,852	32.8%
Profit after tax	Rs m	4,422	4,911	11.1%
Gross profit margin	%	12.4	15.4
Effective tax rate	%	24.0	27.4
Net profit margin	%	7.7	7.6

Dear Reader: If You Invest in Midcap Stocks, this is for You

PCBL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 41 billion as compared to Rs 24 billion in FY23, thereby witnessing an increase of 66.5%.
• Long-term debt stood at Rs 38 billion as compared to Rs 4 billion during FY23, a growth of 827.2%.
• Current assets rose 65% and stood at Rs 43 billion, while fixed assets rose 114% and stood at Rs 87 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 130 billion as against Rs 67 billion during FY23, thereby witnessing a growth of 95%.

PCBL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	28,302	32,467	14.7
Current Liabilities	Rs m	24,458	40,733	66.5
Long-term Debt	Rs m	4,073	37,766	827.2
Total Liabilities	Rs m	66,677	129,836	94.7
Current assets	Rs m	26,063	43,012	65.0
Fixed Assets	Rs m	40,615	86,824	113.8
Total Assets	Rs m	66,677	129,836	94.7

PCBL Cash Flow Statement Analysis

• PCBL's cash flow from operating activities (CFO) during FY24 stood at Rs 11 billion, an improvement of 119.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -42 billion, an improvement of 663.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 34 billion, an improvement of 11,159% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs -784 million net cash flows seen during FY23.

PCBL 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	5,041	11,054	119.3%
Cash Flow from Investing Activities	Rs m	-5,519	-42,141	-
Cash Flow from Financing Activities	Rs m	-306	33,808	-
Net Cash Flow	Rs m	-784	2,721	-

Current Valuations for PCBL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.0, an improvement from the EPS of Rs 11.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 390.0, stands at 30.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 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	153.0	170.1
TTM Earnings per share	Rs	11.7	13.0
Diluted earnings per share	Rs	11.7	13.0
Price to Cash Flow	x	7.6	12.2
TTM P/E ratio	x	9.9	30.0
Price / Book Value ratio	x	1.7	2.7
Market Cap	Rs m	46,862	86,146
Dividends per share (Unadj.)	Rs	5.5	5.5

Ratio Analysis for PCBL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.1x 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 4.7x during FY24, from 11.9x 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 15.1% during FY24, from 15.6% 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 12.2% during FY24, from 19.6% 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 5.2% during FY24, from 7.4% 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	1.1	1.1
Debtors’ Days	Days	7	10
Interest coverage	x	11.9	4.7
Debt to equity ratio	x	0.1	1.2
Return on assets	%	7.4	5.2
Return on equity	%	15.6	15.1
Return on capital employed	%	19.6	12.2

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

PCBL Share Price Performance

Over the last one year, PCBL share price has moved up from Rs 154.8 to Rs 390.0, registering a gain of Rs 235.3 or around 152.0%.

Overall, the S&P BSE SENSEX is up 20.5% over the year.

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