POLYPLEX CORPORATION 2023-24 Annual Report Analysis

Mon, 2 Sep

POLYPLEX CORPORATION 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.

POLYPLEX CORPORATION Income Statement Analysis

• Operating income during the year fell 17.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 61.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.8% in FY24 as against 12.4% in FY23.
• Depreciation charges increased by 3.7% and finance costs increased by 20.2% YoY, respectively.
• Other income declined by 36.7% YoY.
• Net profit for the year declined by 86.0% YoY.
• Net profit margins during the year declined from 8.0% in FY23 to 1.4% in FY24.

POLYPLEX CORPORATION Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	76,523	63,069	-17.6%
Other income	Rs m	952	603	-36.7%
Total Revenues	Rs m	77,475	63,671	-17.8%
Gross profit	Rs m	9,472	3,651	-61.4%
Depreciation	Rs m	2,963	3,071	3.7%
Interest	Rs m	353	424	20.2%
Profit before tax	Rs m	7,108	759	-89.3%
Tax	Rs m	953	-105	NA
Profit after tax	Rs m	6,155	864	-86.0%
Gross profit margin	%	12.4	5.8
Effective tax rate	%	13.4	-13.8
Net profit margin	%	8.0	1.4

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POLYPLEX CORPORATION Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 12 billion as compared to Rs 11 billion in FY23, thereby witnessing an increase of 2.5%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY23, a fall of 5.1%.
• Current assets fell 8% and stood at Rs 34 billion, while fixed assets rose 8% and stood at Rs 40 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 74 billion as against Rs 74 billion during FY23, thereby witnessing a growth of 0%.

POLYPLEX CORPORATION Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	34,829	35,111	0.8
Current Liabilities	Rs m	11,356	11,645	2.5
Long-term Debt	Rs m	3,733	3,544	-5.1
Total Liabilities	Rs m	73,981	74,112	0.2
Current assets	Rs m	36,850	34,027	-7.7
Fixed Assets	Rs m	37,131	40,085	8.0
Total Assets	Rs m	73,981	74,112	0.2

POLYPLEX CORPORATION Cash Flow Statement Analysis

• POLYPLEX CORPORATION's cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -8 billion, an improvement of 592.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion, an improvement of 77% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -5 billion from the Rs 2 billion net cash flows seen during FY23.

POLYPLEX CORPORATION 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	8,015	4,552	-43.2%
Cash Flow from Investing Activities	Rs m	-1,149	-7,964	-
Cash Flow from Financing Activities	Rs m	-6,570	-1,522	-
Net Cash Flow	Rs m	1,602	-5,012	-

Current Valuations for POLYPLEX CORPORATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.5, an decline from the EPS of Rs 196.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,209.2, stands at 19.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 9.6 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	2,437.8	2,009.2
TTM Earnings per share	Rs	196.1	27.5
Diluted earnings per share	Rs	196.1	27.5
Price to Cash Flow	x	3.9	9.6
TTM P/E ratio	x	5.8	19.6
Price / Book Value ratio	x	1.8	1.1
Market Cap	Rs m	62,481	37,734
Dividends per share (Unadj.)	Rs	88.0	3.0

Ratio Analysis for POLYPLEX CORPORATION

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.9x during FY24, from 3.2x 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 deteriorated and stood at 2.8x during FY24, from 21.2x 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 declined and down at 2.5% during FY24, from 17.7% 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 3.1% during FY24, from 19.3% 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 1.7% during FY24, from 8.8% 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	3.2	2.9
Debtors’ Days	Days	440	562
Interest coverage	x	21.2	2.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.8	1.7
Return on equity	%	17.7	2.5
Return on capital employed	%	19.3	3.1

To see how POLYPLEX CORPORATION has performed over the last 5 years, please visit here.

POLYPLEX CORPORATION Share Price Performance

Over the last one year, POLYPLEX CORPORATION share price has moved down from Rs 1,222.0 to Rs 1,209.2, registering a loss of Rs 12.9 or around 1.1%.

Overall, the S&P BSE SENSEX is up 26.9% over the year.

(To know more, check out historical annual results for POLYPLEX CORPORATION and quarterly results for POLYPLEX CORPORATION)