POWER MECH PROJECTS 2023-24 Annual Report Analysis

Tue, 10 Sep

POWER MECH PROJECTS 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.

POWER MECH PROJECTS Income Statement Analysis

• Operating income during the year rose 12.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.7% in FY24 as against 10.9% in FY23.
• Depreciation charges decreased by 4.8% and finance costs increased by 1.5% YoY, respectively.
• Other income grew by 50.3% YoY.
• Net profit for the year grew by 16.1% YoY.
• Net profit margins during the year grew from 5.8% in FY23 to 5.9% in FY24.

POWER MECH PROJECTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	36,012	40,595	12.7%
Other income	Rs m	192	288	50.3%
Total Revenues	Rs m	36,203	40,882	12.9%
Gross profit	Rs m	3,933	4,733	20.3%
Depreciation	Rs m	429	409	-4.8%
Interest	Rs m	895	908	1.5%
Profit before tax	Rs m	2,800	3,704	32.3%
Tax	Rs m	727	1,298	78.6%
Profit after tax	Rs m	2,073	2,406	16.1%
Gross profit margin	%	10.9	11.7
Effective tax rate	%	26.0	35.0
Net profit margin	%	5.8	5.9

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

POWER MECH PROJECTS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 18 billion as compared to Rs 19 billion in FY23, thereby witnessing an decrease of -6.6%.
• Long-term debt stood at Rs 261 million as compared to Rs 261 million during FY23, a growth of 0.2%.
• Current assets rose 19% and stood at Rs 33 billion, while fixed assets fell 9% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 38 billion as against Rs 34 billion during FY23, thereby witnessing a growth of 14%.

POWER MECH PROJECTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	12,754	18,071	41.7
Current Liabilities	Rs m	19,006	17,748	-6.6
Long-term Debt	Rs m	261	261	0.2
Total Liabilities	Rs m	33,726	38,449	14.0
Current assets	Rs m	28,123	33,378	18.7
Fixed Assets	Rs m	5,603	5,072	-9.5
Total Assets	Rs m	33,726	38,449	14.0

POWER MECH PROJECTS Cash Flow Statement Analysis

• POWER MECH PROJECTS'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 261.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 214% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -123 million from the Rs -290 million net cash flows seen during FY23.

POWER MECH PROJECTS 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	1,823	1,795	-1.5%
Cash Flow from Investing Activities	Rs m	-910	-3,291	-
Cash Flow from Financing Activities	Rs m	-1,203	1,373	-
Net Cash Flow	Rs m	-290	-123	-

Current Valuations for POWER MECH PROJECTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 152.2, an improvement from the EPS of Rs 139.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,469.1, stands at 38.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.7 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 22.4 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	2,415.3	2,567.7
TTM Earnings per share	Rs	139.0	152.2
Diluted earnings per share	Rs	131.1	152.2
Price to Cash Flow	x	15.6	22.4
TTM P/E ratio	x	18.1	38.7
Price / Book Value ratio	x	1.9	3.5
Market Cap	Rs m	24,543	62,960
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for POWER MECH PROJECTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.5x 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 5.1x during FY24, from 4.1x 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 13.3% during FY24, from 16.3% 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 25.2% during FY24, from 28.4% 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 8.6% 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	1.5	1.9
Debtors’ Days	Days	9	9
Interest coverage	x	4.1	5.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.8	8.6
Return on equity	%	16.3	13.3
Return on capital employed	%	28.4	25.2

To see how POWER MECH PROJECTS has performed over the last 5 years, please visit here.

POWER MECH PROJECTS Share Price Performance

Over the last one year, POWER MECH PROJECTS share price has moved up from Rs 4,268.4 to Rs 6,469.1, registering a gain of Rs 2,200.8 or around 51.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 71,618.2 (up 1.2%). Over the last one year it has moved up from 47,604.0 to 71,618.2, a gain of 24,014 points (up 50.4%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for POWER MECH PROJECTS and quarterly results for POWER MECH PROJECTS)