PATEL INTEGRATED 2022-23 Annual Report Analysis

Thu, 17 Aug

PATEL INTEGRATED has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

PATEL INTEGRATED Income Statement Analysis

• Operating income during the year rose 18.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.7% in FY23 as against 1.0% in FY22.
• Depreciation charges increased by 10.9% and finance costs decreased by 10.7% YoY, respectively.
• Other income declined by 61.7% YoY.
• Net profit for the year grew by 115.4% YoY.
• Net profit margins during the year grew from 1.0% in FY22 to 1.8% in FY23.

PATEL INTEGRATED Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,343	2,783	18.8%
Other income	Rs m	126	48	-61.7%
Total Revenues	Rs m	2,469	2,831	14.7%
Gross profit	Rs m	-24	75	NA
Depreciation	Rs m	26	29	10.9%
Interest	Rs m	53	48	-10.7%
Profit before tax	Rs m	22	46	107.9%
Tax	Rs m	0	-3	NA
Profit after tax	Rs m	23	49	115.4%
Gross profit margin	%	-1.0	2.7
Effective tax rate	%	-1.8	-5.5
Net profit margin	%	1.0	1.8

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PATEL INTEGRATED Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 354 million as compared to Rs 414 million in FY22, thereby witnessing an decrease of -14.5%.
• Long-term debt down at Rs 138 million as compared to Rs 147 million during FY22, a fall of 5.9%.
• Current assets fell 4% and stood at Rs 1 billion, while fixed assets fell 3% and stood at Rs 613 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a fall of 4%.

PATEL INTEGRATED Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,173	1,177	0.4
Current Liabilities	Rs m	414	354	-14.5
Long-term Debt	Rs m	147	138	-5.9
Total Liabilities	Rs m	1,790	1,720	-3.9
Current assets	Rs m	1,158	1,107	-4.4
Fixed Assets	Rs m	632	613	-3.0
Total Assets	Rs m	1,790	1,720	-3.9

PATEL INTEGRATED Cash Flow Statement Analysis

• PATEL INTEGRATED's cash flow from operating activities (CFO) during FY23 stood at Rs -44 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 9 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 233 million, an improvement of 654% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 198 million from the Rs 44 million net cash flows seen during FY22.

PATEL INTEGRATED Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	92	-44	-
Cash Flow from Investing Activities	Rs m	-5	9	-
Cash Flow from Financing Activities	Rs m	-42	233	-
Net Cash Flow	Rs m	44	198	348.0%

Current Valuations for PATEL INTEGRATED

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.7, an improvement from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 18.0, stands at 24.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 13.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	35.5	42.1
TTM Earnings per share	Rs	0.3	0.7
Diluted earnings per share	Rs	0.4	0.8
Price to Cash Flow	x	17.2	13.3
TTM P/E ratio	x	37.1	24.1
Price / Book Value ratio	x	1.3	0.9
Market Cap	Rs m	1,481	1,040
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for PATEL INTEGRATED

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x during FY23, from 2.8x during FY22. 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 2.0x during FY23, from 1.4x during FY22. 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 4.2% during FY23, from 1.9% during FY23. 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 7.2% during FY23, from 5.7% during FY22. 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 5.6% during FY23, from 4.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.8	3.1
Debtors’ Days	Days	1,002	969
Interest coverage	x	1.4	2.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.3	5.6
Return on equity	%	1.9	4.2
Return on capital employed	%	5.7	7.2

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

PATEL INTEGRATED Share Price Performance

Over the last one year, PATEL INTEGRATED share price has moved up from Rs 16.0 to Rs 18.0, registering a gain of Rs 2.0 or around 12.5%.

Overall, the S&P BSE SENSEX is up 8.9% over the year.

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