PUNJAB ALKALIES 2023-24 Annual Report Analysis

Mon, 23 Sep

PUNJAB ALKALIES 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.

PUNJAB ALKALIES Income Statement Analysis

• Operating income during the year fell 43.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 96.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.7% in FY24 as against 27.2% in FY23.
• Depreciation charges increased by 65.2% and finance costs increased by 125.6% YoY, respectively.
• Other income declined by 25.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 18.9% in FY23 to 6.5% in FY24.

PUNJAB ALKALIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,074	3,970	-43.9%
Other income	Rs m	262	194	-25.8%
Total Revenues	Rs m	7,335	4,164	-43.2%
Gross profit	Rs m	1,924	69	-96.4%
Depreciation	Rs m	239	396	65.2%
Interest	Rs m	81	182	125.6%
Profit before tax	Rs m	1,865	-314	NA
Tax	Rs m	525	-56	NA
Profit after tax	Rs m	1,340	-259	NA
Gross profit margin	%	27.2	1.7
Effective tax rate	%	28.2	17.7
Net profit margin	%	18.9	-6.5

Don't Miss: Key Information for Long-term Investors

PUNJAB ALKALIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 0.6%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY23, a fall of 13.8%.
• Current assets fell 38% and stood at Rs 1 billion, while fixed assets rose 4% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 8 billion during FY23, thereby witnessing a fall of 6%.

PUNJAB ALKALIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,125	3,870	-6.2
Current Liabilities	Rs m	1,974	1,986	0.6
Long-term Debt	Rs m	1,231	1,061	-13.8
Total Liabilities	Rs m	7,601	7,141	-6.0
Current assets	Rs m	1,691	1,042	-38.4
Fixed Assets	Rs m	5,824	6,041	3.7
Total Assets	Rs m	7,601	7,141	-6.0

PUNJAB ALKALIES Cash Flow Statement Analysis

• PUNJAB ALKALIES's cash flow from operating activities (CFO) during FY24 stood at Rs 137 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -559 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 212 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -210 million from the Rs -25 million net cash flows seen during FY23.

PUNJAB ALKALIES 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	1,496	137	-90.9%
Cash Flow from Investing Activities	Rs m	-2,334	-559	-
Cash Flow from Financing Activities	Rs m	812	212	-73.8%
Net Cash Flow	Rs m	-25	-210	-

Current Valuations for PUNJAB ALKALIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.1, an decline from the EPS of Rs 5.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 42.7, stands at -30.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 101.2 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	29.2	16.4
TTM Earnings per share	Rs	5.5	-1.1
Diluted earnings per share	Rs	5.5	-1.1
Price to Cash Flow	x	12.4	101.2
TTM P/E ratio	x	14.6	-30.5
Price / Book Value ratio	x	4.7	3.6
Market Cap	Rs m	19,509	13,862
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PUNJAB ALKALIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY24, from 0.9x 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 -0.7x during FY24, from 24.1x 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 -6.7% during FY24, from 32.5% 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 -2.7% during FY24, from 36.3% 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 -1.1% during FY24, from 18.7% 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	0.9	0.5
Debtors’ Days	Days	266	322
Interest coverage	x	24.1	-0.7
Debt to equity ratio	x	0.3	0.3
Return on assets	%	18.7	-1.1
Return on equity	%	32.5	-6.7
Return on capital employed	%	36.3	-2.7

To see how PUNJAB ALKALIES has performed over the last 5 years, please visit here.

PUNJAB ALKALIES Share Price Performance

Over the last one year, PUNJAB ALKALIES share price has moved down from Rs 60.1 to Rs 42.7, registering a loss of Rs 17.4 or around 29.0%.

Overall, the S&P BSE SENSEX is up 27.1% over the year.

(To know more, check out historical annual results for PUNJAB ALKALIES and quarterly results for PUNJAB ALKALIES)