PPAP AUTOMOTIVE 2022-23 Annual Report Analysis

Thu, 7 Sep

PPAP AUTOMOTIVE has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

PPAP AUTOMOTIVE Income Statement Analysis

• Operating income during the year rose 21.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.2% in FY23 as against 8.4% in FY22.
• Depreciation charges increased by 5.6% and finance costs increased by 73.2% YoY, respectively.
• Other income grew by 41.4% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 0.2% in FY22 to 1.2% in FY23.

PPAP AUTOMOTIVE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,219	5,111	21.1%
Other income	Rs m	10	14	41.4%
Total Revenues	Rs m	4,229	5,125	21.2%
Gross profit	Rs m	356	366	3.1%
Depreciation	Rs m	295	311	5.6%
Interest	Rs m	70	120	73.2%
Profit before tax	Rs m	1	-51	NA
Tax	Rs m	9	8	-9.5%
Profit after tax	Rs m	-8	-59	NA
Gross profit margin	%	8.4	7.2
Effective tax rate	%	711.6	-16.3
Net profit margin	%	-0.2	-1.2

Dear Reader: If You Invest in Midcap Stocks, this is for You

PPAP AUTOMOTIVE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 55.8%.
• Long-term debt stood at Rs 799 million as compared to Rs 789 million during FY22, a growth of 1.3%.
• Current assets rose 23% and stood at Rs 2 billion, while fixed assets rose 5% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 10%.

PPAP AUTOMOTIVE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,039	2,943	-3.2
Current Liabilities	Rs m	1,047	1,631	55.8
Long-term Debt	Rs m	789	799	1.3
Total Liabilities	Rs m	5,007	5,492	9.7
Current assets	Rs m	1,366	1,675	22.6
Fixed Assets	Rs m	3,642	3,817	4.8
Total Assets	Rs m	5,007	5,492	9.7

PPAP AUTOMOTIVE Cash Flow Statement Analysis

• PPAP AUTOMOTIVE's cash flow from operating activities (CFO) during FY23 stood at Rs 306 million, an improvement of 49.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -584 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 281 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 4 million from the Rs -9 million net cash flows seen during FY22.

PPAP AUTOMOTIVE Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	205	306	49.2%
Cash Flow from Investing Activities	Rs m	-709	-584	-
Cash Flow from Financing Activities	Rs m	495	281	-43.2%
Net Cash Flow	Rs m	-9	4	-

Current Valuations for PPAP AUTOMOTIVE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.2, an decline from the EPS of Rs -0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 248.0, stands at -77.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 12.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	301.4	365.1
TTM Earnings per share	Rs	-0.6	-4.2
Diluted earnings per share	Rs	-0.6	-4.2
Price to Cash Flow	x	9.3	12.0
TTM P/E ratio	x	98.4	-77.3
Price / Book Value ratio	x	1.2	1.0
Market Cap	Rs m	3,591	3,015
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for PPAP AUTOMOTIVE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.3x during FY22. 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 0.6x during FY23, from 1.0x during FY22. 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 -2.0% during FY23, from -0.3% during FY23. 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 1.9% during FY23, from 1.8% during FY22. 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 FY23, from 1.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.3	1.0
Debtors’ Days	Days	483	465
Interest coverage	x	1.0	0.6
Debt to equity ratio	x	0.3	0.3
Return on assets	%	1.2	1.1
Return on equity	%	-0.3	-2.0
Return on capital employed	%	1.8	1.9

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

PPAP AUTOMOTIVE Share Price Performance

Over the last one year, PPAP AUTOMOTIVE share price has moved up from Rs 235.7 to Rs 248.0, registering a gain of Rs 12.4 or around 5.2%.

Overall, the S&P BSE SENSEX is up 11.2% over the year.

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