PRICOL 2023-24 Annual Report Analysis

Tue, 16 Jul

PRICOL 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.

PRICOL Income Statement Analysis

• Operating income during the year rose 16.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.0% in FY24 as against 12.2% in FY23.
• Depreciation charges increased by 5.3% and finance costs decreased by 0.2% YoY, respectively.
• Other income grew by 187.0% YoY.
• Net profit for the year grew by 12.8% YoY.
• Net profit margins during the year declined from 6.4% in FY23 to 6.2% in FY24.

PRICOL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	19,586	22,718	16.0%
Other income	Rs m	46	132	187.0%
Total Revenues	Rs m	19,631	22,849	16.4%
Gross profit	Rs m	2,382	2,731	14.6%
Depreciation	Rs m	779	821	5.3%
Interest	Rs m	183	183	-0.2%
Profit before tax	Rs m	1,466	1,859	26.8%
Tax	Rs m	219	453	106.5%
Profit after tax	Rs m	1,247	1,406	12.8%
Gross profit margin	%	12.2	12.0
Effective tax rate	%	15.0	24.4
Net profit margin	%	6.4	6.2

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PRICOL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 5.5%.
• Current assets rose 15% and stood at Rs 7 billion, while fixed assets rose 8% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 14 billion as against Rs 13 billion during FY23, thereby witnessing a growth of 10%.

PRICOL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,043	8,453	20.0
Current Liabilities	Rs m	4,981	5,256	5.5
Long-term Debt	Rs m	268	0	-100.0
Total Liabilities	Rs m	13,072	14,353	9.8
Current assets	Rs m	6,441	7,430	15.3
Fixed Assets	Rs m	6,435	6,924	7.6
Total Assets	Rs m	13,072	14,353	9.8

PRICOL Cash Flow Statement Analysis

• PRICOL's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 56.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 97.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -689 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 565 million from the Rs 334 million net cash flows seen during FY23.

PRICOL 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	1,628	2,548	56.5%
Cash Flow from Investing Activities	Rs m	-655	-1,293	-
Cash Flow from Financing Activities	Rs m	-638	-689	-
Net Cash Flow	Rs m	334	565	69.2%

Current Valuations for PRICOL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.5, an improvement from the EPS of Rs 10.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 493.5, stands at 42.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 17.7 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	160.7	186.4
TTM Earnings per share	Rs	10.2	11.5
Diluted earnings per share	Rs	10.2	11.5
Price to Cash Flow	x	12.5	17.7
TTM P/E ratio	x	20.3	42.8
Price / Book Value ratio	x	2.7	4.7
Market Cap	Rs m	19,224	39,435
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PRICOL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.3x 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 11.2x during FY24, from 9.0x 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 declined and down at 16.6% during FY24, from 17.7% 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 improved and stood at 24.2% during FY24, from 22.6% 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 11.1% during FY24, from 10.9% 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	1.3	1.4
Debtors’ Days	Days	501	461
Interest coverage	x	9.0	11.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.9	11.1
Return on equity	%	17.7	16.6
Return on capital employed	%	22.6	24.2

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

PRICOL Share Price Performance

Over the last one year, PRICOL share price has moved up from Rs 226.0 to Rs 493.5, registering a gain of Rs 267.5 or around 118.3%.

Overall, the S&P BSE SENSEX is up 23.6% over the year.

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