PENNAR INDUSTRIES 2023-24 Annual Report Analysis

Mon, 14 Oct

PENNAR INDUSTRIES 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.

PENNAR INDUSTRIES Income Statement Analysis

• Operating income during the year rose 8.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.7% in FY24 as against 7.6% in FY23.
• Depreciation charges increased by 2.4% and finance costs increased by 26.5% YoY, respectively.
• Other income grew by 20.6% YoY.
• Net profit for the year grew by 30.4% YoY.
• Net profit margins during the year grew from 2.6% in FY23 to 3.1% in FY24.

PENNAR INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	28,946	31,306	8.2%
Other income	Rs m	334	403	20.6%
Total Revenues	Rs m	29,281	31,709	8.3%
Gross profit	Rs m	2,212	2,730	23.4%
Depreciation	Rs m	650	665	2.4%
Interest	Rs m	912	1,154	26.5%
Profit before tax	Rs m	984	1,314	33.5%
Tax	Rs m	230	331	43.7%
Profit after tax	Rs m	754	984	30.4%
Gross profit margin	%	7.6	8.7
Effective tax rate	%	23.4	25.2
Net profit margin	%	2.6	3.1

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PENNAR INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 16 billion as compared to Rs 14 billion in FY23, thereby witnessing an increase of 14.9%.
• Long-term debt stood at Rs 1 billion as compared to Rs 988 million during FY23, a growth of 36.4%.
• Current assets rose 9% and stood at Rs 16 billion, while fixed assets rose 22% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 26 billion as against Rs 23 billion during FY23, thereby witnessing a growth of 14%.

PENNAR INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,780	8,765	12.7
Current Liabilities	Rs m	13,691	15,725	14.9
Long-term Debt	Rs m	988	1,348	36.4
Total Liabilities	Rs m	23,182	26,401	13.9
Current assets	Rs m	14,985	16,364	9.2
Fixed Assets	Rs m	8,198	10,037	22.4
Total Assets	Rs m	23,182	26,401	13.9

PENNAR INDUSTRIES Cash Flow Statement Analysis

• PENNAR INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 817.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -223 million, an improvement of 80% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -532 million from the Rs 1 billion net cash flows seen during FY23.

PENNAR INDUSTRIES 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	2,441	2,247	-7.9%
Cash Flow from Investing Activities	Rs m	-280	-2,568	-
Cash Flow from Financing Activities	Rs m	-1,126	-223	-
Net Cash Flow	Rs m	1,052	-532	-

Current Valuations for PENNAR INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.3, an improvement from the EPS of Rs 5.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 181.2, stands at 23.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 9.4 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	214.5	232.0
TTM Earnings per share	Rs	5.6	7.3
Diluted earnings per share	Rs	5.6	7.3
Price to Cash Flow	x	6.8	9.4
TTM P/E ratio	x	12.6	23.8
Price / Book Value ratio	x	1.0	1.8
Market Cap	Rs m	7,641	15,444
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PENNAR INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.1x 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 2.1x during FY24, from 2.1x 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 improved and stood at 11.2% during FY24, from 9.7% 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 improved and stood at 24.4% during FY24, from 21.6% 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 improved and stood at 8.1% during FY24, from 7.2% 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	1.1	1.0
Debtors’ Days	Days	458	577
Interest coverage	x	2.1	2.1
Debt to equity ratio	x	0.1	0.2
Return on assets	%	7.2	8.1
Return on equity	%	9.7	11.2
Return on capital employed	%	21.6	24.4

To see how PENNAR INDUSTRIES has performed over the last 5 years, please visit here.

PENNAR INDUSTRIES Share Price Performance

Over the last one year, PENNAR INDUSTRIES share price has moved up from Rs 106.0 to Rs 181.2, registering a gain of Rs 75.3 or around 71.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 33,599.6 (down 0.1%). Over the last one year it has moved up from 23,197.7 to 33,599.6, a gain of 10,402 points (up 44.8%).

Overall, the S&P BSE SENSEX is up 24.1% over the year.

(To know more, check out historical annual results for PENNAR INDUSTRIES and quarterly results for PENNAR INDUSTRIES)