PITTI ENGINEERING 2023-24 Annual Report Analysis

Mon, 2 Sep

PITTI ENGINEERING 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.

PITTI ENGINEERING Income Statement Analysis

• Operating income during the year rose 9.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.7% in FY24 as against 15.6% in FY23.
• Depreciation charges increased by 21.0% and finance costs increased by 12.0% YoY, respectively.
• Other income grew by 170.3% YoY.
• Net profit for the year grew by 53.3% YoY.
• Net profit margins during the year grew from 6.1% in FY23 to 8.5% in FY24.

PITTI ENGINEERING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,690	10,645	9.9%
Other income	Rs m	178	482	170.3%
Total Revenues	Rs m	9,869	11,127	12.8%
Gross profit	Rs m	1,514	1,777	17.4%
Depreciation	Rs m	447	540	21.0%
Interest	Rs m	447	500	12.0%
Profit before tax	Rs m	799	1,219	52.6%
Tax	Rs m	211	317	50.5%
Profit after tax	Rs m	588	902	53.3%
Gross profit margin	%	15.6	16.7
Effective tax rate	%	26.4	26.0
Net profit margin	%	6.1	8.5

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

PITTI ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 25.7%.
• Long-term debt stood at Rs 3 billion as compared to Rs 1 billion during FY23, a growth of 115.7%.
• Current assets rose 30% and stood at Rs 7 billion, while fixed assets rose 43% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 13 billion as against Rs 10 billion during FY23, thereby witnessing a growth of 36%.

PITTI ENGINEERING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,340	4,162	24.6
Current Liabilities	Rs m	4,513	5,673	25.7
Long-term Debt	Rs m	1,219	2,629	115.7
Total Liabilities	Rs m	9,780	13,300	36.0
Current assets	Rs m	5,422	7,067	30.3
Fixed Assets	Rs m	4,357	6,233	43.0
Total Assets	Rs m	9,780	13,300	36.0

PITTI ENGINEERING Cash Flow Statement Analysis

• PITTI ENGINEERING's cash flow from operating activities (CFO) during FY24 stood at Rs 736 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 127.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 327% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 362 million from the Rs 321 million net cash flows seen during FY23.

PITTI ENGINEERING 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	2,230	736	-67.0%
Cash Flow from Investing Activities	Rs m	-1,035	-2,357	-
Cash Flow from Financing Activities	Rs m	-874	1,984	-
Net Cash Flow	Rs m	321	362	13.0%

Current Valuations for PITTI ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.1, an improvement from the EPS of Rs 18.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,356.9, stands at 49.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.6 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 12.1 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	302.3	332.1
TTM Earnings per share	Rs	18.4	28.1
Diluted earnings per share	Rs	16.6	25.4
Price to Cash Flow	x	9.3	12.1
TTM P/E ratio	x	16.3	49.7
Price / Book Value ratio	x	2.9	4.2
Market Cap	Rs m	9,770	17,460
Dividends per share (Unadj.)	Rs	2.7	1.5

Ratio Analysis for PITTI ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 1.2x 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 3.4x during FY24, from 2.8x 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 21.7% 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 25.3% during FY24, from 27.3% 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 10.5% during FY24, from 10.6% 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	1.2	1.2
Debtors’ Days	Days	683	721
Interest coverage	x	2.8	3.4
Debt to equity ratio	x	0.4	0.6
Return on assets	%	10.6	10.5
Return on equity	%	17.6	21.7
Return on capital employed	%	27.3	25.3

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

PITTI ENGINEERING Share Price Performance

Over the last one year, PITTI ENGINEERING share price has moved up from Rs 654.7 to Rs 1,356.9, registering a gain of Rs 702.2 or around 107.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,920.5 (down 0.3%). Over the last one year it has moved up from 45,406.6 to 72,920.5, a gain of 27,514 points (up 60.6%).

Overall, the S&P BSE SENSEX is up 27.0% over the year.

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