PHOENIX MILL 2023-24 Annual Report Analysis

Wed, 28 Aug

PHOENIX MILL 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.

PHOENIX MILL Income Statement Analysis

• Operating income during the year rose 50.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 54.7% in FY24 as against 80.5% in FY23.
• Depreciation charges increased by 18.6% and finance costs increased by 16.0% YoY, respectively.
• Other income grew by 13.7% YoY.
• Net profit for the year declined by 9.9% YoY.
• Net profit margins during the year declined from 55.8% in FY23 to 33.3% in FY24.

PHOENIX MILL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	26,383	39,777	50.8%
Other income	Rs m	1,163	1,322	13.7%
Total Revenues	Rs m	27,546	41,099	49.2%
Gross profit	Rs m	21,241	21,768	2.5%
Depreciation	Rs m	2,278	2,702	18.6%
Interest	Rs m	3,412	3,959	16.0%
Profit before tax	Rs m	16,714	16,429	-1.7%
Tax	Rs m	1,989	3,166	59.1%
Profit after tax	Rs m	14,725	13,263	-9.9%
Gross profit margin	%	80.5	54.7
Effective tax rate	%	11.9	19.3
Net profit margin	%	55.8	33.3

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PHOENIX MILL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 22 billion as compared to Rs 26 billion in FY23, thereby witnessing an decrease of -12.9%.
• Long-term debt stood at Rs 38 billion as compared to Rs 33 billion during FY23, a growth of 15.2%.
• Current assets fell 0% and stood at Rs 34 billion, while fixed assets rose 12% and stood at Rs 158 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 191 billion as against Rs 174 billion during FY23, thereby witnessing a growth of 10%.

PHOENIX MILL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	83,555	94,292	12.9
Current Liabilities	Rs m	25,785	22,452	-12.9
Long-term Debt	Rs m	33,102	38,131	15.2
Total Liabilities	Rs m	174,257	191,478	9.9
Current assets	Rs m	33,927	33,875	-0.2
Fixed Assets	Rs m	140,330	157,604	12.3
Total Assets	Rs m	174,257	191,478	9.9

PHOENIX MILL Cash Flow Statement Analysis

• PHOENIX MILL's cash flow from operating activities (CFO) during FY24 stood at Rs 22 billion, an improvement of 59.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -19 billion, an improvement of 21.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 34 million from the Rs -402 million net cash flows seen during FY23.

PHOENIX MILL 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	13,561	21,617	59.4%
Cash Flow from Investing Activities	Rs m	-15,360	-18,591	-
Cash Flow from Financing Activities	Rs m	1,318	-2,992	-
Net Cash Flow	Rs m	-402	34	-

Current Valuations for PHOENIX MILL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 74.2, an decline from the EPS of Rs 82.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,628.8, stands at 48.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 16.3 times.
• The company's price to cash flow (P/CF) ratio stood at 23.7 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	147.7	222.6
TTM Earnings per share	Rs	82.4	74.2
Diluted earnings per share	Rs	82.4	74.2
Price to Cash Flow	x	13.7	23.7
TTM P/E ratio	x	15.8	48.0
Price / Book Value ratio	x	2.8	4.0
Market Cap	Rs m	229,937	378,315
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for PHOENIX MILL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.3x 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 5.2x during FY24, from 5.9x 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 14.1% during FY24, from 17.6% 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 15.4% during FY24, from 17.3% 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 9.0% during FY24, from 10.4% 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	1.3	1.5
Debtors’ Days	Days	330	248
Interest coverage	x	5.9	5.2
Debt to equity ratio	x	0.4	0.4
Return on assets	%	10.4	9.0
Return on equity	%	17.6	14.1
Return on capital employed	%	17.3	15.4

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

PHOENIX MILL Share Price Performance

Over the last one year, PHOENIX MILL share price has moved up from Rs 1,785.4 to Rs 3,628.8, registering a gain of Rs 1,843.4 or around 103.2%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,080.8 (down 0.3%). Over the last one year it has moved up from 4,308.5 to 8,080.8, a gain of 3,772 points (up 87.6%).

Overall, the S&P BSE SENSEX is up 26.1% over the year.

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