PARAMOUNT COMM 2023-24 Annual Report Analysis

Tue, 3 Sep

PARAMOUNT COMM 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.

PARAMOUNT COMM Income Statement Analysis

• Operating income during the year rose 34.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 86.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.3% in FY24 as against 6.0% in FY23.
• Depreciation charges increased by 1.3% and finance costs decreased by 17.7% YoY, respectively.
• Other income declined by 50.9% YoY.
• Net profit for the year grew by 79.3% YoY.
• Net profit margins during the year grew from 6.0% in FY23 to 8.0% in FY24.

PARAMOUNT COMM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,965	10,706	34.4%
Other income	Rs m	164	81	-50.9%
Total Revenues	Rs m	8,129	10,787	32.7%
Gross profit	Rs m	478	892	86.8%
Depreciation	Rs m	93	94	1.3%
Interest	Rs m	72	59	-17.7%
Profit before tax	Rs m	478	820	71.6%
Tax	Rs m	0	-37	0.0
Profit after tax	Rs m	478	856	79.3%
Gross profit margin	%	6.0	8.3
Effective tax rate	%	0.0	-4.5
Net profit margin	%	6.0	8.0

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PARAMOUNT COMM Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 937 million in FY23, thereby witnessing an increase of 95.8%.
• Long-term debt down at Rs 134 million as compared to Rs 1 billion during FY23, a fall of 88.1%.
• Current assets rose 70% and stood at Rs 6 billion, while fixed assets rose 44% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 63%.

PARAMOUNT COMM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,499	6,234	149.5
Current Liabilities	Rs m	937	1,834	95.8
Long-term Debt	Rs m	1,123	134	-88.1
Total Liabilities	Rs m	5,039	8,229	63.3
Current assets	Rs m	3,654	6,230	70.5
Fixed Assets	Rs m	1,385	1,999	44.4
Total Assets	Rs m	5,039	8,229	63.3

PARAMOUNT COMM Cash Flow Statement Analysis

• PARAMOUNT COMM's cash flow from operating activities (CFO) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -958 million, an improvement of 486.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 739% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -134 million from the Rs 166 million net cash flows seen during FY23.

PARAMOUNT COMM 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	111	-1,009	-
Cash Flow from Investing Activities	Rs m	-163	-958	-
Cash Flow from Financing Activities	Rs m	218	1,833	739.3%
Net Cash Flow	Rs m	166	-134	-

Current Valuations for PARAMOUNT COMM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an improvement from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 88.0, stands at 27.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 23.5 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	41.0	35.3
TTM Earnings per share	Rs	2.5	2.8
Diluted earnings per share	Rs	1.6	2.8
Price to Cash Flow	x	16.7	23.5
TTM P/E ratio	x	19.9	27.9
Price / Book Value ratio	x	2.1	3.6
Market Cap	Rs m	5,318	22,345
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PARAMOUNT COMM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.4x during FY24, from 3.9x 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 14.9x during FY24, from 7.7x 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 13.7% during FY24, from 19.1% 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 13.8% during FY24, from 15.2% 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 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	3.9	3.4
Debtors’ Days	Days	773	860
Interest coverage	x	7.7	14.9
Debt to equity ratio	x	0.4	0.0
Return on assets	%	10.9	11.1
Return on equity	%	19.1	13.7
Return on capital employed	%	15.2	13.8

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

PARAMOUNT COMM Share Price Performance

Over the last one year, PARAMOUNT COMM share price has moved up from Rs 59.7 to Rs 88.0, registering a gain of Rs 28.3 or around 47.4%.

Overall, the S&P BSE SENSEX is up 26.8% over the year.

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