PI INDUSTRIES 2023-24 Annual Report Analysis

Tue, 6 Aug

PI 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.

PI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 18.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.6% in FY24 as against 23.9% in FY23.
• Depreciation charges increased by 36.1% and finance costs increased by 10.9% YoY, respectively.
• Other income grew by 30.6% YoY.
• Net profit for the year grew by 36.8% YoY.
• Net profit margins during the year grew from 18.9% in FY23 to 21.9% in FY24.

PI INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	64,920	76,658	18.1%
Other income	Rs m	1,590	2,077	30.6%
Total Revenues	Rs m	66,510	78,735	18.4%
Gross profit	Rs m	15,511	20,388	31.4%
Depreciation	Rs m	2,265	3,082	36.1%
Interest	Rs m	393	436	10.9%
Profit before tax	Rs m	14,443	18,947	31.2%
Tax	Rs m	2,148	2,132	-0.7%
Profit after tax	Rs m	12,295	16,815	36.8%
Gross profit margin	%	23.9	26.6
Effective tax rate	%	14.9	11.3
Net profit margin	%	18.9	21.9

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PI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 22 billion as compared to Rs 19 billion in FY23, thereby witnessing an increase of 14.5%.
• Long-term debt stood at Rs 617 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets rose 12% and stood at Rs 72 billion, while fixed assets rose 50% and stood at Rs 53 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 125 billion as against Rs 99 billion during FY23, thereby witnessing a growth of 26%.

PI INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	72,011	87,327	21.3
Current Liabilities	Rs m	19,077	21,846	14.5
Long-term Debt	Rs m	0	617	0.0
Total Liabilities	Rs m	99,310	124,758	25.6
Current assets	Rs m	63,882	71,525	12.0
Fixed Assets	Rs m	35,428	53,233	50.3
Total Assets	Rs m	99,310	124,758	25.6

PI INDUSTRIES Cash Flow Statement Analysis

• PI INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 20 billion, an improvement of 35.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -18 billion, an improvement of 262.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion, an improvement of 54% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 138 million from the Rs 5 billion net cash flows seen during FY23.

PI 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	15,014	20,359	35.6%
Cash Flow from Investing Activities	Rs m	-4,962	-18,005	-
Cash Flow from Financing Activities	Rs m	-4,831	-2,216	-
Net Cash Flow	Rs m	5,221	138	-97.4%

Current Valuations for PI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 110.8, an improvement from the EPS of Rs 81.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,314.5, stands at 39.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 8.5 times.
• The company's price to cash flow (P/CF) ratio stood at 26.5 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	427.9	505.3
TTM Earnings per share	Rs	81.0	110.8
Diluted earnings per share	Rs	81.0	110.8
Price to Cash Flow	x	31.5	26.5
TTM P/E ratio	x	37.6	39.2
Price / Book Value ratio	x	6.4	6.0
Market Cap	Rs m	460,089	526,936
Dividends per share (Unadj.)	Rs	10.0	15.0

Ratio Analysis for PI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.3x during FY24, from 3.3x 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 improved and stood at 44.5x during FY24, from 37.8x 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 19.3% during FY24, from 17.1% 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 22.0% during FY24, from 20.6% 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 improved and stood at 13.8% during FY24, from 12.8% 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	3.3	3.3
Debtors’ Days	Days	43	44
Interest coverage	x	37.8	44.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.8	13.8
Return on equity	%	17.1	19.3
Return on capital employed	%	20.6	22.0

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

PI INDUSTRIES Share Price Performance

Over the last one year, PI INDUSTRIES share price has moved up from Rs 3,699.8 to Rs 4,314.5, registering a gain of Rs 614.7 or around 16.6%.

Overall, the S&P BSE SENSEX is up 21.1% over the year.

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