PRADEEP MET. 2023-24 Annual Report Analysis

Wed, 17 Jul

PRADEEP MET. 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.

PRADEEP MET. Income Statement Analysis

• Operating income during the year rose 3.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.0% in FY24 as against 16.7% in FY23.
• Depreciation charges increased by 14.3% and finance costs increased by 10.6% YoY, respectively.
• Other income grew by 45.5% YoY.
• Net profit for the year declined by 15.0% YoY.
• Net profit margins during the year declined from 9.8% in FY23 to 8.1% in FY24.

PRADEEP MET. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,678	2,767	3.3%
Other income	Rs m	26	37	45.5%
Total Revenues	Rs m	2,704	2,804	3.7%
Gross profit	Rs m	448	415	-7.5%
Depreciation	Rs m	85	97	14.3%
Interest	Rs m	66	73	10.6%
Profit before tax	Rs m	323	283	-12.7%
Tax	Rs m	61	60	-2.5%
Profit after tax	Rs m	262	223	-15.0%
Gross profit margin	%	16.7	15.0
Effective tax rate	%	18.9	21.1
Net profit margin	%	9.8	8.1

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PRADEEP MET. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 896 million in FY23, thereby witnessing an increase of 14.0%.
• Long-term debt down at Rs 188 million as compared to Rs 211 million during FY23, a fall of 11.2%.
• Current assets rose 17% and stood at Rs 1 billion, while fixed assets rose 12% and stood at Rs 984 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 15%.

PRADEEP MET. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	944	1,139	20.6
Current Liabilities	Rs m	896	1,021	14.0
Long-term Debt	Rs m	211	188	-11.2
Total Liabilities	Rs m	2,088	2,399	14.9
Current assets	Rs m	1,207	1,415	17.2
Fixed Assets	Rs m	880	984	11.8
Total Assets	Rs m	2,088	2,399	14.9

PRADEEP MET. Cash Flow Statement Analysis

• PRADEEP MET.'s cash flow from operating activities (CFO) during FY24 stood at Rs 316 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -183 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -101 million, an improvement of 49% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 31 million from the Rs -15 million net cash flows seen during FY23.

PRADEEP MET. 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	368	316	-14.1%
Cash Flow from Investing Activities	Rs m	-186	-183	-
Cash Flow from Financing Activities	Rs m	-197	-101	-
Net Cash Flow	Rs m	-15	31	-

Current Valuations for PRADEEP MET.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.9, an decline from the EPS of Rs 15.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 244.3, stands at 18.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 11.1 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	155.1	160.2
TTM Earnings per share	Rs	15.2	12.9
Diluted earnings per share	Rs	15.2	12.9
Price to Cash Flow	x	8.6	11.1
TTM P/E ratio	x	11.4	18.9
Price / Book Value ratio	x	2.6	3.1
Market Cap	Rs m	2,455	3,545
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for PRADEEP MET.

• 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 deteriorated and stood at 4.9x during FY24, from 5.9x 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 19.6% during FY24, from 27.8% 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 26.8% during FY24, from 33.7% 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 12.3% during FY24, from 15.7% 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	736	872
Interest coverage	x	5.9	4.9
Debt to equity ratio	x	0.2	0.2
Return on assets	%	15.7	12.3
Return on equity	%	27.8	19.6
Return on capital employed	%	33.7	26.8

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

PRADEEP MET. Share Price Performance

Over the last one year, PRADEEP MET. share price has moved up from Rs 158.1 to Rs 244.3, registering a gain of Rs 86.3 or around 54.6%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for PRADEEP MET. and quarterly results for PRADEEP MET.)