PLAZA WIRES LTD. 2022-23 Annual Report Analysis

Fri, 31 Mar

PLAZA WIRES LTD. has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

PLAZA WIRES LTD. Income Statement Analysis

• Operating income during the year rose 3.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.6% in FY23 as against 7.5% in FY22.
• Depreciation charges decreased by 2.5% and finance costs increased by 22.9% YoY, respectively.
• Other income declined by 36.8% YoY.
• Net profit for the year grew by 26.1% YoY.
• Net profit margins during the year grew from 3.4% in FY22 to 4.1% in FY23.

PLAZA WIRES LTD. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,768	1,825	3.2%
Other income	Rs m	2	1	-36.8%
Total Revenues	Rs m	1,769	1,826	3.2%
Gross profit	Rs m	132	157	19.0%
Depreciation	Rs m	13	13	-2.5%
Interest	Rs m	34	42	22.9%
Profit before tax	Rs m	86	103	19.7%
Tax	Rs m	27	28	5.3%
Profit after tax	Rs m	60	75	26.1%
Gross profit margin	%	7.5	8.6
Effective tax rate	%	31.0	27.3
Net profit margin	%	3.4	4.1

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PLAZA WIRES LTD. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 515 million as compared to Rs 516 million in FY22, thereby witnessing an decrease of -0.3%.
• Long-term debt stood at Rs 57 million as compared to Rs 52 million during FY22, a growth of 8.6%.
• Current assets rose 7% and stood at Rs 854 million, while fixed assets rose 10% and stood at Rs 267 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 1 billion during FY22, thereby witnessing a growth of 8%.

PLAZA WIRES LTD. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	455	531	16.6
Current Liabilities	Rs m	516	515	-0.3
Long-term Debt	Rs m	52	57	8.6
Total Liabilities	Rs m	1,042	1,121	7.6
Current assets	Rs m	799	854	6.9
Fixed Assets	Rs m	243	267	9.9
Total Assets	Rs m	1,042	1,121	7.6

PLAZA WIRES LTD. Cash Flow Statement Analysis

• PLAZA WIRES LTD.'s cash flow from operating activities (CFO) during FY23 stood at Rs 86 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -39 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -47 million, an improvement of 31% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs 0 million net cash flows seen during FY22.

PLAZA WIRES LTD. Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	110	86	-22.1%
Cash Flow from Investing Activities	Rs m	-42	-39	-
Cash Flow from Financing Activities	Rs m	-68	-47	-
Net Cash Flow	Rs m	0	0	-50.0%

Current Valuations for PLAZA WIRES LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.5, an improvement from the EPS of Rs 1.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 0.0, stands at 0.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.0 times.
• The company's price to cash flow (P/CF) ratio stood at 0.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	57.9	59.7
TTM Earnings per share	Rs	1.9	2.5
Diluted earnings per share	Rs	1.4	1.7
Price to Cash Flow	x	0.0	0.0
TTM P/E ratio	x	0.0	0.0
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	0
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PLAZA WIRES LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY23, from 1.5x during FY22. 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 3.5x during FY23, from 3.5x during FY22. 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 14.1% during FY23, from 13.1% during FY23. 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 24.8% during FY23, from 23.8% during FY22. 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 10.5% during FY23, from 9.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.5	1.7
Debtors’ Days	Days	92	104
Interest coverage	x	3.5	3.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.0	10.5
Return on equity	%	13.1	14.1
Return on capital employed	%	23.8	24.8

To see how PLAZA WIRES LTD. has performed over the last 5 years, please visit here.

PLAZA WIRES LTD. Share Price Performance

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(To know more, check out historical annual results for PLAZA WIRES LTD. and quarterly results for PLAZA WIRES LTD.)