PARADEEP PHOSPHATES 2023-24 Annual Report Analysis

Mon, 9 Sep

PARADEEP PHOSPHATES 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.

PARADEEP PHOSPHATES Income Statement Analysis

• Operating income during the year fell 13.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 19.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.6% in FY24 as against 6.0% in FY23.
• Depreciation charges increased by 20.3% and finance costs increased by 25.7% YoY, respectively.
• Other income declined by 24.4% YoY.
• Net profit for the year declined by 67.2% YoY.
• Net profit margins during the year declined from 2.3% in FY23 to 0.9% in FY24.

PARADEEP PHOSPHATES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	133,407	115,751	-13.2%
Other income	Rs m	911	688	-24.4%
Total Revenues	Rs m	134,318	116,440	-13.3%
Gross profit	Rs m	8,015	6,487	-19.1%
Depreciation	Rs m	1,752	2,107	20.3%
Interest	Rs m	2,912	3,660	25.7%
Profit before tax	Rs m	4,262	1,408	-67.0%
Tax	Rs m	1,220	409	-66.4%
Profit after tax	Rs m	3,042	999	-67.2%
Gross profit margin	%	6.0	5.6
Effective tax rate	%	28.6	29.1
Net profit margin	%	2.3	0.9

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PARADEEP PHOSPHATES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 52 billion as compared to Rs 64 billion in FY23, thereby witnessing an decrease of -18.2%.
• Long-term debt stood at Rs 7 billion as compared to Rs 6 billion during FY23, a growth of 10.6%.
• Current assets fell 18% and stood at Rs 58 billion, while fixed assets rose 7% and stood at Rs 39 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 97 billion as against Rs 107 billion during FY23, thereby witnessing a fall of 9%.

PARADEEP PHOSPHATES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	35,027	35,611	1.7
Current Liabilities	Rs m	63,910	52,259	-18.2
Long-term Debt	Rs m	6,119	6,765	10.6
Total Liabilities	Rs m	106,570	96,611	-9.3
Current assets	Rs m	70,152	57,569	-17.9
Fixed Assets	Rs m	36,418	39,042	7.2
Total Assets	Rs m	106,570	96,611	-9.3

PARADEEP PHOSPHATES Cash Flow Statement Analysis

• PARADEEP PHOSPHATES's cash flow from operating activities (CFO) during FY24 stood at Rs 14 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -10 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 477 million from the Rs -5 billion net cash flows seen during FY23.

PARADEEP PHOSPHATES 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	-23,767	14,368	-
Cash Flow from Investing Activities	Rs m	-4,187	-3,669	-
Cash Flow from Financing Activities	Rs m	23,006	-10,222	-
Net Cash Flow	Rs m	-4,948	477	-

Current Valuations for PARADEEP PHOSPHATES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.2, an decline from the EPS of Rs 3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 85.4, stands at 30.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 17.9 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	163.8	142.1
TTM Earnings per share	Rs	3.7	1.2
Diluted earnings per share	Rs	3.7	1.2
Price to Cash Flow	x	8.6	17.9
TTM P/E ratio	x	13.5	30.9
Price / Book Value ratio	x	1.3	1.6
Market Cap	Rs m	44,573	55,486
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for PARADEEP PHOSPHATES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY24, from 1.1x 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 deteriorated and stood at 1.4x during FY24, from 2.5x 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 2.8% during FY24, from 8.7% 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 12.0% during FY24, from 17.4% 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 4.8% during FY24, from 5.6% 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	1.1	1.1
Debtors’ Days	Days	1,010	858
Interest coverage	x	2.5	1.4
Debt to equity ratio	x	0.2	0.2
Return on assets	%	5.6	4.8
Return on equity	%	8.7	2.8
Return on capital employed	%	17.4	12.0

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

PARADEEP PHOSPHATES Share Price Performance

Over the last one year, PARADEEP PHOSPHATES share price has moved up from Rs 72.5 to Rs 85.4, registering a gain of Rs 12.9 or around 17.8%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

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