PANCHMAHAL STEEL 2023-24 Annual Report Analysis

Mon, 11 Nov

PANCHMAHAL STEEL 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.

PANCHMAHAL STEEL Income Statement Analysis

• Operating income during the year fell 12.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.7% in FY24 as against 3.2% in FY23.
• Depreciation charges increased by 1.7% and finance costs increased by 12.2% YoY, respectively.
• Other income grew by 202.2% YoY.
• Net profit for the year grew by 115.5% YoY.
• Net profit margins during the year grew from 0.3% in FY23 to 0.7% in FY24.

PANCHMAHAL STEEL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,886	4,276	-12.5%
Other income	Rs m	14	42	202.2%
Total Revenues	Rs m	4,900	4,319	-11.9%
Gross profit	Rs m	155	157	1.1%
Depreciation	Rs m	80	81	1.7%
Interest	Rs m	71	79	12.2%
Profit before tax	Rs m	19	39	106.3%
Tax	Rs m	5	10	82.3%
Profit after tax	Rs m	14	30	115.5%
Gross profit margin	%	3.2	3.7
Effective tax rate	%	27.4	24.2
Net profit margin	%	0.3	0.7

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PANCHMAHAL STEEL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 694 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -47.9%.
• Current assets fell 23% and stood at Rs 2 billion, while fixed assets fell 14% and stood at Rs 685 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 3 billion during FY23, thereby witnessing a fall of 21%.

PANCHMAHAL STEEL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,538	1,569	2.0
Current Liabilities	Rs m	1,331	694	-47.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,953	2,343	-20.6
Current assets	Rs m	2,158	1,658	-23.2
Fixed Assets	Rs m	795	685	-13.8
Total Assets	Rs m	2,953	2,343	-20.6

PANCHMAHAL STEEL Cash Flow Statement Analysis

• PANCHMAHAL STEEL's cash flow from operating activities (CFO) during FY24 stood at Rs 397 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 49 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -446 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 0 million from the Rs -31 million net cash flows seen during FY23.

PANCHMAHAL STEEL 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	-301	397	-
Cash Flow from Investing Activities	Rs m	-65	49	-
Cash Flow from Financing Activities	Rs m	335	-446	-
Net Cash Flow	Rs m	-31	0	-

Current Valuations for PANCHMAHAL STEEL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.6, an improvement from the EPS of Rs 0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 305.0, stands at 100.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 23.5 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	256.1	224.1
TTM Earnings per share	Rs	0.7	1.6
Diluted earnings per share	Rs	0.7	1.6
Price to Cash Flow	x	27.9	23.5
TTM P/E ratio	x	189.5	100.1
Price / Book Value ratio	x	1.8	1.7
Market Cap	Rs m	2,773	2,599
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PANCHMAHAL STEEL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY24, from 1.6x 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 improved and stood at 1.5x during FY24, from 1.3x 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 improved and stood at 1.9% during FY24, from 0.9% 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 improved and stood at 7.6% during FY24, from 5.8% 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 improved and stood at 4.7% during FY24, from 2.9% 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	1.6	2.4
Debtors’ Days	Days	332	350
Interest coverage	x	1.3	1.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.9	4.7
Return on equity	%	0.9	1.9
Return on capital employed	%	5.8	7.6

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

PANCHMAHAL STEEL Share Price Performance

Over the last one year, PANCHMAHAL STEEL share price has moved up from Rs 136.1 to Rs 305.0, registering a gain of Rs 168.9 or around 124.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 30,683.8 (down 1.0%). Over the last one year it has moved up from 23,054.3 to 30,683.8, a gain of 7,629 points (up 33.1%).

Overall, the S&P BSE SENSEX is up 22.4% over the year.

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