PIDILITE INDUSTRIES 2023-24 Annual Report Analysis

Tue, 16 Jul

PIDILITE INDUSTRIES 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.

PIDILITE INDUSTRIES Income Statement Analysis

• Operating income during the year rose 4.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 32.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.3% in FY24 as against 16.9% in FY23.
• Depreciation charges increased by 26.3% and finance costs increased by 7.5% YoY, respectively.
• Other income grew by 181.5% YoY.
• Net profit for the year grew by 35.6% YoY.
• Net profit margins during the year grew from 10.9% in FY23 to 14.1% in FY24.

PIDILITE INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	117,991	123,830	4.9%
Other income	Rs m	496	1,397	181.5%
Total Revenues	Rs m	118,487	125,226	5.7%
Gross profit	Rs m	19,910	26,316	32.2%
Depreciation	Rs m	2,697	3,407	26.3%
Interest	Rs m	476	512	7.5%
Profit before tax	Rs m	17,232	23,794	38.1%
Tax	Rs m	4,344	6,319	45.5%
Profit after tax	Rs m	12,889	17,474	35.6%
Gross profit margin	%	16.9	21.3
Effective tax rate	%	25.2	26.6
Net profit margin	%	10.9	14.1

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PIDILITE INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 28 billion as compared to Rs 24 billion in FY23, thereby witnessing an increase of 16.1%.
• Current assets rose 28% and stood at Rs 58 billion, while fixed assets rose 5% and stood at Rs 62 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 121 billion as against Rs 105 billion during FY23, thereby witnessing a growth of 15%.

PIDILITE INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	71,686	83,973	17.1
Current Liabilities	Rs m	24,106	27,976	16.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	105,049	120,756	15.0
Current assets	Rs m	45,615	58,330	27.9
Fixed Assets	Rs m	59,434	62,392	5.0
Total Assets	Rs m	105,049	120,756	15.0

PIDILITE INDUSTRIES Cash Flow Statement Analysis

• PIDILITE INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 27 billion, an improvement of 74.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -18 billion, an improvement of 96.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 16 million net cash flows seen during FY23.

PIDILITE INDUSTRIES 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	15,576	27,240	74.9%
Cash Flow from Investing Activities	Rs m	-8,990	-17,693	-
Cash Flow from Financing Activities	Rs m	-6,564	-7,425	-
Net Cash Flow	Rs m	16	2,008	12,142.7%

Current Valuations for PIDILITE INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.4, an improvement from the EPS of Rs 25.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,166.9, stands at 92.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.2 times, while the price to sales ratio stands at 13.0 times.
• The company's price to cash flow (P/CF) ratio stood at 64.9 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	232.0	243.5
TTM Earnings per share	Rs	25.3	34.4
Diluted earnings per share	Rs	25.3	34.4
Price to Cash Flow	x	76.8	64.9
TTM P/E ratio	x	93.4	92.0
Price / Book Value ratio	x	17.4	16.1
Market Cap	Rs m	1,247,479	1,355,228
Dividends per share (Unadj.)	Rs	11.0	16.0

Ratio Analysis for PIDILITE INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 1.9x 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 47.5x during FY24, from 37.2x 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 20.8% during FY24, from 18.0% 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 28.9% during FY24, from 24.7% 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 14.9% during FY24, from 12.7% 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	1.9	2.1
Debtors’ Days	Days	5	5
Interest coverage	x	37.2	47.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.7	14.9
Return on equity	%	18.0	20.8
Return on capital employed	%	24.7	28.9

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

PIDILITE INDUSTRIES Share Price Performance

Over the last one year, PIDILITE INDUSTRIES share price has moved up from Rs 2,623.1 to Rs 3,166.9, registering a gain of Rs 543.8 or around 20.7%.

Overall, the S&P BSE SENSEX is up 23.6% over the year.

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