PRAKASH PIPES 2023-24 Annual Report Analysis

Wed, 16 Oct

PRAKASH PIPES 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.

PRAKASH PIPES Income Statement Analysis

• Operating income during the year fell 5.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.1% in FY24 as against 11.7% in FY23.
• Depreciation charges decreased by 20.0% and finance costs increased by 20.2% YoY, respectively.
• Other income declined by 27.2% YoY.
• Net profit for the year grew by 25.7% YoY.
• Net profit margins during the year grew from 10.1% in FY23 to 13.4% in FY24.

PRAKASH PIPES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,092	6,694	-5.6%
Other income	Rs m	216	157	-27.2%
Total Revenues	Rs m	7,308	6,851	-6.3%
Gross profit	Rs m	833	1,075	29.1%
Depreciation	Rs m	122	98	-20.0%
Interest	Rs m	32	39	20.2%
Profit before tax	Rs m	895	1,096	22.5%
Tax	Rs m	182	200	9.7%
Profit after tax	Rs m	713	896	25.7%
Gross profit margin	%	11.7	16.1
Effective tax rate	%	20.3	18.2
Net profit margin	%	10.1	13.4

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PRAKASH PIPES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 629 million in FY23, thereby witnessing an increase of 82.4%.
• Long-term debt stood at Rs 81 million as compared to Rs 3 million during FY23, a growth of 3023.1%.
• Current assets rose 54% and stood at Rs 4 billion, while fixed assets rose 9% and stood at Rs 863 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 44%.

PRAKASH PIPES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,786	3,652	31.1
Current Liabilities	Rs m	629	1,147	82.4
Long-term Debt	Rs m	3	81	3,023.1
Total Liabilities	Rs m	3,403	4,887	43.6
Current assets	Rs m	2,608	4,024	54.3
Fixed Assets	Rs m	796	863	8.5
Total Assets	Rs m	3,403	4,887	43.6

PRAKASH PIPES Cash Flow Statement Analysis

• PRAKASH PIPES's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 181.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -460 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 256 million, an improvement of 5,010% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 992 million from the Rs 586 million net cash flows seen during FY23.

PRAKASH PIPES 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	425	1,196	181.6%
Cash Flow from Investing Activities	Rs m	156	-460	-
Cash Flow from Financing Activities	Rs m	5	256	5,010.0%
Net Cash Flow	Rs m	586	992	69.4%

Current Valuations for PRAKASH PIPES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 37.5, an improvement from the EPS of Rs 29.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 580.4, stands at 14.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 7.6 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	296.5	279.8
TTM Earnings per share	Rs	29.8	37.5
Diluted earnings per share	Rs	29.8	37.5
Price to Cash Flow	x	4.0	7.6
TTM P/E ratio	x	4.7	14.4
Price / Book Value ratio	x	1.5	2.1
Market Cap	Rs m	4,105	7,529
Dividends per share (Unadj.)	Rs	1.2	1.8

Ratio Analysis for PRAKASH PIPES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.5x during FY24, from 4.1x 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 29.3x during FY24, from 28.8x 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 24.5% during FY24, from 25.6% 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 30.4% during FY24, from 33.2% 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 19.1% during FY24, from 21.9% 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	4.1	3.5
Debtors’ Days	Days	387	409
Interest coverage	x	28.8	29.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.9	19.1
Return on equity	%	25.6	24.5
Return on capital employed	%	33.2	30.4

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

PRAKASH PIPES Share Price Performance

Over the last one year, PRAKASH PIPES share price has moved up from Rs 405.1 to Rs 580.4, registering a gain of Rs 175.3 or around 43.3%.

Overall, the S&P BSE SENSEX is up 23.7% over the year.

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