PRAKASH INDUSTRIES 2023-24 Annual Report Analysis

Wed, 11 Sep

PRAKASH INDUSTRIES 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 INDUSTRIES Income Statement Analysis

• Operating income during the year rose 6.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.4% in FY24 as against 12.0% in FY23.
• Depreciation charges increased by 0.7% and finance costs decreased by 30.2% YoY, respectively.
• Other income grew by 460.1% YoY.
• Net profit for the year grew by 82.8% YoY.
• Net profit margins during the year grew from 5.5% in FY23 to 9.5% in FY24.

PRAKASH INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	34,438	36,778	6.8%
Other income	Rs m	114	638	460.1%
Total Revenues	Rs m	34,551	37,416	8.3%
Gross profit	Rs m	4,132	4,926	19.2%
Depreciation	Rs m	1,517	1,528	0.7%
Interest	Rs m	824	575	-30.2%
Profit before tax	Rs m	1,905	3,462	81.7%
Tax	Rs m	0	-20	0.0
Profit after tax	Rs m	1,905	3,482	82.8%
Gross profit margin	%	12.0	13.4
Effective tax rate	%	0.0	-0.6
Net profit margin	%	5.5	9.5

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PRAKASH INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 8 billion as compared to Rs 9 billion in FY23, thereby witnessing an decrease of -12.5%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY23, a fall of 50.3%.
• Current assets fell 10% and stood at Rs 8 billion, while fixed assets fell 3% and stood at Rs 33 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 41 billion as against Rs 43 billion during FY23, thereby witnessing a fall of 5%.

PRAKASH INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	29,538	30,238	2.4
Current Liabilities	Rs m	8,927	7,815	-12.5
Long-term Debt	Rs m	2,245	1,115	-50.3
Total Liabilities	Rs m	42,507	40,586	-4.5
Current assets	Rs m	8,777	7,862	-10.4
Fixed Assets	Rs m	33,731	32,724	-3.0
Total Assets	Rs m	42,507	40,586	-4.5

PRAKASH INDUSTRIES Cash Flow Statement Analysis

• PRAKASH INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 2.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -62 million from the Rs 18 million net cash flows seen during FY23.

PRAKASH INDUSTRIES 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	5,851	6,015	2.8%
Cash Flow from Investing Activities	Rs m	-5,454	-3,200	-
Cash Flow from Financing Activities	Rs m	-379	-2,877	-
Net Cash Flow	Rs m	18	-62	-

Current Valuations for PRAKASH INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.4, an improvement from the EPS of Rs 10.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 216.8, stands at 11.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 4.9 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	192.3	205.4
TTM Earnings per share	Rs	10.6	19.4
Diluted earnings per share	Rs	10.6	19.4
Price to Cash Flow	x	2.7	4.9
TTM P/E ratio	x	4.8	11.1
Price / Book Value ratio	x	0.4	0.8
Market Cap	Rs m	11,896	24,619
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PRAKASH INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY24, from 1.0x 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 7.0x during FY24, from 3.3x 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 11.5% during FY24, from 6.4% 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 12.9% during FY24, from 8.6% 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 10.0% during FY24, from 6.4% 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	1.0	1.0
Debtors’ Days	Days	103	83
Interest coverage	x	3.3	7.0
Debt to equity ratio	x	0.1	0.0
Return on assets	%	6.4	10.0
Return on equity	%	6.4	11.5
Return on capital employed	%	8.6	12.9

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

PRAKASH INDUSTRIES Share Price Performance

Over the last one year, PRAKASH INDUSTRIES share price has moved up from Rs 134.7 to Rs 216.8, registering a gain of Rs 82.1 or around 61.0%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 65,298.1 (up 0.5%). Over the last one year it has moved up from 46,360.5 to 65,298.1, a gain of 18,938 points (up 40.8%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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