PREMIER EXPL. 2023-24 Annual Report Analysis

Mon, 9 Sep

PREMIER EXPL. 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.

PREMIER EXPL. Income Statement Analysis

• Operating income during the year rose 34.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 125.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.5% in FY24 as against 12.8% in FY23.
• Depreciation charges increased by 17.2% and finance costs increased by 17.8% YoY, respectively.
• Other income grew by 91.6% YoY.
• Net profit for the year grew by 308.0% YoY.
• Net profit margins during the year grew from 3.4% in FY23 to 10.5% in FY24.

PREMIER EXPL. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,020	2,717	34.5%
Other income	Rs m	22	41	91.6%
Total Revenues	Rs m	2,042	2,759	35.1%
Gross profit	Rs m	259	585	125.8%
Depreciation	Rs m	98	115	17.2%
Interest	Rs m	89	105	17.8%
Profit before tax	Rs m	93	406	335.6%
Tax	Rs m	24	122	416.9%
Profit after tax	Rs m	70	284	308.0%
Gross profit margin	%	12.8	21.5
Effective tax rate	%	25.3	30.0
Net profit margin	%	3.4	10.5

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PREMIER EXPL. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 29.7%.
• Long-term debt stood at Rs 125 million as compared to Rs 23 million during FY23, a growth of 446.1%.
• Current assets rose 47% and stood at Rs 2 billion, while fixed assets rose 5% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 24%.

PREMIER EXPL. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,947	2,202	13.1
Current Liabilities	Rs m	1,420	1,841	29.7
Long-term Debt	Rs m	23	125	446.1
Total Liabilities	Rs m	3,567	4,419	23.9
Current assets	Rs m	1,592	2,347	47.4
Fixed Assets	Rs m	1,975	2,072	4.9
Total Assets	Rs m	3,567	4,419	23.9

PREMIER EXPL. Cash Flow Statement Analysis

• PREMIER EXPL.'s cash flow from operating activities (CFO) during FY24 stood at Rs 790 million, an improvement of 273.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -253 million, an improvement of 61.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -338 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 198 million from the Rs -1 million net cash flows seen during FY23.

PREMIER EXPL. 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	211	790	273.8%
Cash Flow from Investing Activities	Rs m	-157	-253	-
Cash Flow from Financing Activities	Rs m	-56	-338	-
Net Cash Flow	Rs m	-1	198	-

Current Valuations for PREMIER EXPL.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.4, an improvement from the EPS of Rs 6.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 550.0, stands at 107.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.4 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 5.6 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	187.9	252.8
TTM Earnings per share	Rs	6.5	26.4
Diluted earnings per share	Rs	1.3	5.3
Price to Cash Flow	x	25.8	5.6
TTM P/E ratio	x	62.1	107.6
Price / Book Value ratio	x	2.2	1.0
Market Cap	Rs m	4,369	2,241
Dividends per share (Unadj.)	Rs	0.3	0.5

Ratio Analysis for PREMIER EXPL.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x 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 improved and stood at 4.9x during FY24, from 2.0x 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 12.9% during FY24, from 3.6% 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 improved and stood at 22.0% during FY24, from 9.3% 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 8.8% during FY24, from 4.5% 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	1.3
Debtors’ Days	Days	970	976
Interest coverage	x	2.0	4.9
Debt to equity ratio	x	0.0	0.1
Return on assets	%	4.5	8.8
Return on equity	%	3.6	12.9
Return on capital employed	%	9.3	22.0

To see how PREMIER EXPL. has performed over the last 5 years, please visit here.

PREMIER EXPL. Share Price Performance

Over the last one year, PREMIER EXPL. share price has moved up from Rs 215.9 to Rs 550.0, registering a gain of Rs 334.2 or around 154.8%.

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

(To know more, check out historical annual results for PREMIER EXPL. and quarterly results for PREMIER EXPL.)