PRAJ IND.LTD 2023-24 Annual Report Analysis

Thu, 4 Jul

PRAJ IND.LTD 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.

PRAJ IND.LTD Income Statement Analysis

• Operating income during the year fell 5.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.7% in FY24 as against 8.2% in FY23.
• Depreciation charges increased by 45.7% and finance costs increased by 111.4% YoY, respectively.
• Other income grew by 12.0% YoY.
• Net profit for the year grew by 18.2% YoY.
• Net profit margins during the year grew from 6.7% in FY23 to 8.4% in FY24.

PRAJ IND.LTD Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	35,818	33,914	-5.3%
Other income	Rs m	601	674	12.0%
Total Revenues	Rs m	36,419	34,587	-5.0%
Gross profit	Rs m	2,935	3,640	24.0%
Depreciation	Rs m	302	441	45.7%
Interest	Rs m	46	98	111.4%
Profit before tax	Rs m	3,187	3,775	18.4%
Tax	Rs m	789	941	19.2%
Profit after tax	Rs m	2,398	2,834	18.2%
Gross profit margin	%	8.2	10.7
Effective tax rate	%	24.8	24.9
Net profit margin	%	6.7	8.4

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PRAJ IND.LTD Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 15 billion as compared to Rs 15 billion in FY23, thereby witnessing an decrease of -2.8%.
• Current assets rose 1% and stood at Rs 22 billion, while fixed assets rose 56% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 29 billion as against Rs 26 billion during FY23, thereby witnessing a growth of 11%.

PRAJ IND.LTD Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	10,753	12,745	18.5
Current Liabilities	Rs m	15,005	14,591	-2.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	26,075	28,864	10.7
Current assets	Rs m	21,820	22,103	1.3
Fixed Assets	Rs m	4,255	6,624	55.7
Total Assets	Rs m	26,075	28,864	10.7

PRAJ IND.LTD Cash Flow Statement Analysis

• PRAJ IND.LTD's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 23.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -101 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 698 million from the Rs -89 million net cash flows seen during FY23.

PRAJ IND.LTD 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	1,621	1,994	23.0%
Cash Flow from Investing Activities	Rs m	-844	-101	-
Cash Flow from Financing Activities	Rs m	-934	-1,239	-
Net Cash Flow	Rs m	-89	698	-

Current Valuations for PRAJ IND.LTD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.4, an improvement from the EPS of Rs 13.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 734.4, stands at 47.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.6 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 27.6 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	195.0	184.5
TTM Earnings per share	Rs	13.1	15.4
Diluted earnings per share	Rs	13.0	15.4
Price to Cash Flow	x	23.2	27.6
TTM P/E ratio	x	26.1	47.6
Price / Book Value ratio	x	6.4	7.1
Market Cap	Rs m	68,943	90,427
Dividends per share (Unadj.)	Rs	4.5	6.0

Ratio Analysis for PRAJ IND.LTD

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x 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 deteriorated and stood at 39.6x during FY24, from 69.9x 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 declined and down at 22.2% during FY24, from 22.3% 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 improved and stood at 30.4% during FY24, from 30.1% 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 10.2% during FY24, from 9.4% 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	1.5
Debtors’ Days	Days	81	90
Interest coverage	x	69.9	39.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.4	10.2
Return on equity	%	22.3	22.2
Return on capital employed	%	30.1	30.4

To see how PRAJ IND.LTD has performed over the last 5 years, please visit here.

PRAJ IND.LTD Share Price Performance

Over the last one year, PRAJ IND.LTD share price has moved up from Rs 370.1 to Rs 734.4, registering a gain of Rs 364.4 or around 98.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,757.7 (up 1.0%). Over the last one year it has moved up from 40,532.4 to 73,757.7, a gain of 33,225 points (up 82.0%).

Overall, the S&P BSE SENSEX is up 22.7% over the year.

(To know more, check out historical annual results for PRAJ IND.LTD and quarterly results for PRAJ IND.LTD)