PRINCE PIPES AND FITTINGS 2023-24 Annual Report Analysis

Sun, 18 Aug

PRINCE PIPES AND FITTINGS 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.

PRINCE PIPES AND FITTINGS 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 30.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.7% in FY24 as against 9.2% in FY23.
• Depreciation charges increased by 9.8% and finance costs decreased by 41.0% YoY, respectively.
• Other income grew by 88.2% YoY.
• Net profit for the year grew by 50.3% YoY.
• Net profit margins during the year grew from 4.5% in FY23 to 7.1% in FY24.

PRINCE PIPES AND FITTINGS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	27,109	25,687	-5.2%
Other income	Rs m	86	161	88.2%
Total Revenues	Rs m	27,194	25,848	-4.9%
Gross profit	Rs m	2,503	3,253	30.0%
Depreciation	Rs m	830	912	9.8%
Interest	Rs m	110	65	-41.0%
Profit before tax	Rs m	1,648	2,438	47.9%
Tax	Rs m	434	613	41.1%
Profit after tax	Rs m	1,214	1,825	50.3%
Gross profit margin	%	9.2	12.7
Effective tax rate	%	26.3	25.1
Net profit margin	%	4.5	7.1

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PRINCE PIPES AND FITTINGS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -3.9%.
• Long-term debt stood at Rs 189 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets rose 4% and stood at Rs 12 billion, while fixed assets rose 20% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 21 billion as against Rs 19 billion during FY23, thereby witnessing a growth of 10%.

PRINCE PIPES AND FITTINGS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,640	15,444	13.2
Current Liabilities	Rs m	5,343	5,132	-3.9
Long-term Debt	Rs m	0	189	0.0
Total Liabilities	Rs m	19,287	21,232	10.1
Current assets	Rs m	11,976	12,465	4.1
Fixed Assets	Rs m	7,311	8,767	19.9
Total Assets	Rs m	19,287	21,232	10.1

PRINCE PIPES AND FITTINGS Cash Flow Statement Analysis

• PRINCE PIPES AND FITTINGS's cash flow from operating activities (CFO) during FY24 stood at Rs 329 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 475 million, an improvement of 137% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -453 million from the Rs 899 million net cash flows seen during FY23.

PRINCE PIPES AND FITTINGS 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	3,602	329	-90.9%
Cash Flow from Investing Activities	Rs m	-1,422	-1,258	-
Cash Flow from Financing Activities	Rs m	-1,281	475	-
Net Cash Flow	Rs m	899	-453	-

Current Valuations for PRINCE PIPES AND FITTINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.5, an improvement from the EPS of Rs 11.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 598.7, stands at 35.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 26.2 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	245.2	232.3
TTM Earnings per share	Rs	11.0	16.5
Diluted earnings per share	Rs	11.0	16.5
Price to Cash Flow	x	29.3	26.2
TTM P/E ratio	x	49.3	35.3
Price / Book Value ratio	x	5.0	4.6
Market Cap	Rs m	68,664	71,715
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for PRINCE PIPES AND FITTINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY24, from 2.2x 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 38.5x during FY24, from 16.0x 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 11.8% during FY24, from 8.9% 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 16.0% during FY24, from 12.9% 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 8.9% during FY24, from 6.9% 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	2.2	2.4
Debtors’ Days	Days	56	83
Interest coverage	x	16.0	38.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.9	8.9
Return on equity	%	8.9	11.8
Return on capital employed	%	12.9	16.0

To see how PRINCE PIPES AND FITTINGS has performed over the last 5 years, please visit here.

PRINCE PIPES AND FITTINGS Share Price Performance

Over the last one year, PRINCE PIPES AND FITTINGS share price has moved down from Rs 682.0 to Rs 598.7, registering a loss of Rs 83.4 or around 12.2%.

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

(To know more, check out historical annual results for PRINCE PIPES AND FITTINGS and quarterly results for PRINCE PIPES AND FITTINGS)