PRIME SECURITIES 2023-24 Annual Report Analysis

Mon, 10 Jun

PRIME SECURITIES 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.

PRIME SECURITIES Income Statement Analysis

• Operating income during the year rose 51.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 97.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 30.0% in FY24 as against 23.1% in FY23.
• Depreciation charges decreased by 14.9% and finance costs decreased by 22.8% YoY, respectively.
• Other income declined by 15.6% YoY.
• Net profit for the year grew by 66.0% YoY.
• Net profit margins during the year grew from 27.6% in FY23 to 30.2% in FY24.

PRIME SECURITIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	405	615	51.7%
Other income	Rs m	75	64	-15.6%
Total Revenues	Rs m	481	679	41.2%
Gross profit	Rs m	94	185	97.1%
Depreciation	Rs m	11	10	-14.9%
Interest	Rs m	6	4	-22.8%
Profit before tax	Rs m	152	234	54.2%
Tax	Rs m	40	48	21.1%
Profit after tax	Rs m	112	186	66.0%
Gross profit margin	%	23.1	30.0
Effective tax rate	%	26.3	20.6
Net profit margin	%	27.6	30.2

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PRIME SECURITIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 119 million as compared to Rs 90 million in FY23, thereby witnessing an increase of 31.3%.
• Current assets fell 22% and stood at Rs 617 million, while fixed assets rose 87% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 28%.

PRIME SECURITIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,202	1,534	27.6
Current Liabilities	Rs m	90	119	31.3
Long-term Debt	Rs m	0	0	-100.0
Total Liabilities	Rs m	1,447	1,848	27.7
Current assets	Rs m	789	617	-21.8
Fixed Assets	Rs m	658	1,231	87.0
Total Assets	Rs m	1,447	1,848	27.7

PRIME SECURITIES Cash Flow Statement Analysis

• PRIME SECURITIES's cash flow from operating activities (CFO) during FY24 stood at Rs 132 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -180 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 38 million, an improvement of 163% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -11 million from the Rs -79 million net cash flows seen during FY23.

PRIME SECURITIES 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	-53	132	-
Cash Flow from Investing Activities	Rs m	35	-180	-
Cash Flow from Financing Activities	Rs m	-60	38	-
Net Cash Flow	Rs m	-79	-11	-

Current Valuations for PRIME SECURITIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.6, an improvement from the EPS of Rs 3.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 200.1, stands at 36.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 10.8 times.
• The company's price to cash flow (P/CF) ratio stood at 25.9 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	12.5	18.5
TTM Earnings per share	Rs	3.5	5.6
Diluted earnings per share	Rs	3.3	5.5
Price to Cash Flow	x	29.9	25.9
TTM P/E ratio	x	33.0	36.2
Price / Book Value ratio	x	2.9	3.3
Market Cap	Rs m	3,446	5,052
Dividends per share (Unadj.)	Rs	0.5	1.0

Ratio Analysis for PRIME SECURITIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 5.2x during FY24, from 8.7x 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 54.2x during FY24, from 27.6x 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 12.1% during FY24, from 9.3% 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 15.5% during FY24, from 13.1% 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 10.3% during FY24, from 8.1% 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	8.7	5.2
Debtors’ Days	Days	1,739	986
Interest coverage	x	27.6	54.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.1	10.3
Return on equity	%	9.3	12.1
Return on capital employed	%	13.1	15.5

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

PRIME SECURITIES Share Price Performance

Over the last one year, PRIME SECURITIES share price has moved up from Rs 124.7 to Rs 200.1, registering a gain of Rs 75.4 or around 60.4%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

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