POKARNA 2023-24 Annual Report Analysis

Tue, 17 Sep

POKARNA 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.

POKARNA Income Statement Analysis

• Operating income during the year fell 5.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 30.6% in FY24 as against 23.6% in FY23.
• Depreciation charges increased by 5.4% and finance costs decreased by 18.4% YoY, respectively.
• Other income grew by 3.2% YoY.
• Net profit for the year grew by 34.2% YoY.
• Net profit margins during the year grew from 9.4% in FY23 to 13.3% in FY24.

POKARNA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,253	6,876	-5.2%
Other income	Rs m	112	115	3.2%
Total Revenues	Rs m	7,365	6,991	-5.1%
Gross profit	Rs m	1,713	2,106	22.9%
Depreciation	Rs m	404	426	5.4%
Interest	Rs m	490	399	-18.4%
Profit before tax	Rs m	932	1,396	49.9%
Tax	Rs m	251	483	92.5%
Profit after tax	Rs m	681	914	34.2%
Gross profit margin	%	23.6	30.6
Effective tax rate	%	26.9	34.6
Net profit margin	%	9.4	13.3

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POKARNA 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 1.8%.
• Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY23, a fall of 12.0%.
• Current assets rose 19% and stood at Rs 4 billion, while fixed assets rose 7% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 11%.

POKARNA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,072	5,923	16.8
Current Liabilities	Rs m	2,331	2,373	1.8
Long-term Debt	Rs m	3,451	3,039	-12.0
Total Liabilities	Rs m	11,196	12,405	10.8
Current assets	Rs m	3,718	4,411	18.6
Fixed Assets	Rs m	7,478	7,974	6.6
Total Assets	Rs m	11,196	12,405	10.8

POKARNA Cash Flow Statement Analysis

• POKARNA's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 38.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -378 million, an improvement of 19.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 5% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 474 million from the Rs -32 million net cash flows seen during FY23.

POKARNA 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	1,357	1,881	38.6%
Cash Flow from Investing Activities	Rs m	-317	-378	-
Cash Flow from Financing Activities	Rs m	-1,140	-1,083	-
Net Cash Flow	Rs m	-32	474	-

Current Valuations for POKARNA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.5, an improvement from the EPS of Rs 22.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,052.8, stands at 31.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 4.7 times.
• The company's price to cash flow (P/CF) ratio stood at 9.8 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	234.0	221.8
TTM Earnings per share	Rs	22.0	29.5
Diluted earnings per share	Rs	22.0	29.5
Price to Cash Flow	x	7.0	9.8
TTM P/E ratio	x	11.4	31.6
Price / Book Value ratio	x	3.1	2.2
Market Cap	Rs m	15,506	13,097
Dividends per share (Unadj.)	Rs	0.6	0.6

Ratio Analysis for POKARNA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.6x 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 4.5x during FY24, from 2.9x 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 15.4% during FY24, from 13.4% 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 improved and stood at 20.0% during FY24, from 16.7% 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 10.6% during FY24, from 10.5% 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	1.6	1.9
Debtors’ Days	Days	550	635
Interest coverage	x	2.9	4.5
Debt to equity ratio	x	0.7	0.5
Return on assets	%	10.5	10.6
Return on equity	%	13.4	15.4
Return on capital employed	%	16.7	20.0

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

POKARNA Share Price Performance

Over the last one year, POKARNA share price has moved up from Rs 494.5 to Rs 1,052.8, registering a gain of Rs 558.3 or around 112.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 32,000.3 (down 0.3%). Over the last one year it has moved up from 23,480.2 to 32,000.3, a gain of 8,520 points (up 36.3%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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