PILANI INVESTMENT 2023-24 Annual Report Analysis

Mon, 9 Sep

PILANI INVESTMENT 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.

PILANI INVESTMENT Income Statement Analysis

• Operating income during the year rose 2.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 96.4% in FY24 as against 97.6% in FY23.
• Depreciation charges decreased by 19.9% and finance costs increased by 14.3% YoY, respectively.
• Other income declined by 99.6% YoY.
• Net profit for the year declined by 4.0% YoY.
• Net profit margins during the year declined from 56.0% in FY23 to 52.3% in FY24.

PILANI INVESTMENT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,786	2,863	2.7%
Other income	Rs m	10	0	-99.6%
Total Revenues	Rs m	2,796	2,863	2.4%
Gross profit	Rs m	2,719	2,761	1.6%
Depreciation	Rs m	3	2	-19.9%
Interest	Rs m	650	743	14.3%
Profit before tax	Rs m	2,076	2,016	-2.9%
Tax	Rs m	517	519	0.4%
Profit after tax	Rs m	1,559	1,497	-4.0%
Gross profit margin	%	97.6	96.4
Effective tax rate	%	24.9	25.7
Net profit margin	%	56.0	52.3

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PILANI INVESTMENT Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 166 million as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -95.2%.
• Long-term debt stood at Rs 9 billion as compared to Rs 4 billion during FY23, a growth of 130.9%.
• Current assets rose 12% and stood at Rs 24 billion, while fixed assets rose 37% and stood at Rs 140 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 164 billion as against Rs 124 billion during FY23, thereby witnessing a growth of 32%.

PILANI INVESTMENT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	111,695	146,035	30.7
Current Liabilities	Rs m	3,424	166	-95.2
Long-term Debt	Rs m	4,107	9,486	130.9
Total Liabilities	Rs m	124,162	164,492	32.5
Current assets	Rs m	21,660	24,270	12.0
Fixed Assets	Rs m	102,502	140,222	36.8
Total Assets	Rs m	124,162	164,492	32.5

PILANI INVESTMENT Cash Flow Statement Analysis

• PILANI INVESTMENT's cash flow from operating activities (CFO) during FY24 stood at Rs -309 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -913 million, an improvement of 976.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 130% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -3 million from the Rs -32 million net cash flows seen during FY23.

PILANI INVESTMENT 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	4,174	-309	-
Cash Flow from Investing Activities	Rs m	-85	-913	-
Cash Flow from Financing Activities	Rs m	-4,122	1,219	-
Net Cash Flow	Rs m	-32	-3	-

Current Valuations for PILANI INVESTMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 135.3, an decline from the EPS of Rs 140.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,293.1, stands at 38.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 20.5 times.
• The company's price to cash flow (P/CF) ratio stood at 20.7 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	251.7	258.6
TTM Earnings per share	Rs	140.9	135.3
Diluted earnings per share	Rs	140.8	135.2
Price to Cash Flow	x	11.5	20.7
TTM P/E ratio	x	11.5	38.5
Price / Book Value ratio	x	0.2	0.2
Market Cap	Rs m	20,151	31,103
Dividends per share (Unadj.)	Rs	15.0	15.0

Ratio Analysis for PILANI INVESTMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 146.6x during FY24, from 6.3x 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 deteriorated and stood at 3.7x during FY24, from 4.2x 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 1.0% during FY24, from 1.4% 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 1.8% during FY24, from 2.4% 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 1.4% during FY24, from 1.8% 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	6.3	146.6
Debtors’ Days	Days	6	5
Interest coverage	x	4.2	3.7
Debt to equity ratio	x	0.0	0.1
Return on assets	%	1.8	1.4
Return on equity	%	1.4	1.0
Return on capital employed	%	2.4	1.8

To see how PILANI INVESTMENT has performed over the last 5 years, please visit here.

PILANI INVESTMENT Share Price Performance

Over the last one year, PILANI INVESTMENT share price has moved up from Rs 2,194.2 to Rs 5,293.1, registering a gain of Rs 3,099.0 or around 141.2%.

Overall, the S&P BSE SENSEX is up 23.7% over the year.

(To know more, check out historical annual results for PILANI INVESTMENT and quarterly results for PILANI INVESTMENT)