PURAVANKARA 2023-24 Annual Report Analysis

Fri, 27 Sep

PURAVANKARA 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.

PURAVANKARA Income Statement Analysis

• Operating income during the year rose 76.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 74.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.9% in FY24 as against 21.1% in FY23.
• Depreciation charges increased by 63.7% and finance costs increased by 20.7% YoY, respectively.
• Other income declined by 56.3% YoY.
• Net profit for the year declined by 36.9% YoY.
• Net profit margins during the year declined from 5.4% in FY23 to 1.9% in FY24.

PURAVANKARA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,358	21,853	76.8%
Other income	Rs m	1,712	748	-56.3%
Total Revenues	Rs m	14,070	22,601	60.6%
Gross profit	Rs m	2,610	4,557	74.6%
Depreciation	Rs m	171	281	63.7%
Interest	Rs m	3,597	4,342	20.7%
Profit before tax	Rs m	554	682	23.1%
Tax	Rs m	-111	262	NA
Profit after tax	Rs m	665	420	-36.9%
Gross profit margin	%	21.1	20.9
Effective tax rate	%	-20.0	38.5
Net profit margin	%	5.4	1.9

End of Year Sale: Grab our small cap recommendation service at 60% off!

PURAVANKARA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 92 billion as compared to Rs 76 billion in FY23, thereby witnessing an increase of 21.7%.
• Long-term debt stood at Rs 6 billion as compared to Rs 5 billion during FY23, a growth of 24.3%.
• Current assets rose 15% and stood at Rs 103 billion, while fixed assets rose 37% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 115 billion as against Rs 98 billion during FY23, thereby witnessing a growth of 17%.

PURAVANKARA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	19,868	18,800	-5.4
Current Liabilities	Rs m	75,702	92,164	21.7
Long-term Debt	Rs m	4,664	5,795	24.3
Total Liabilities	Rs m	98,353	114,589	16.5
Current assets	Rs m	90,174	103,378	14.6
Fixed Assets	Rs m	8,179	11,212	37.1
Total Assets	Rs m	98,353	114,589	16.5

PURAVANKARA Cash Flow Statement Analysis

• PURAVANKARA's cash flow from operating activities (CFO) during FY24 stood at Rs 9 billion, an improvement of 517.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 129 million 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 6 billion from the Rs 991 million net cash flows seen during FY23.

PURAVANKARA 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	1,452	8,964	517.4%
Cash Flow from Investing Activities	Rs m	948	129	-86.4%
Cash Flow from Financing Activities	Rs m	-1,409	-3,126	-
Net Cash Flow	Rs m	991	5,967	502.2%

Current Valuations for PURAVANKARA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.8, an decline from the EPS of Rs 2.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 412.0, stands at 121.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 4.5 times.
• The company's price to cash flow (P/CF) ratio stood at 56.7 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	52.1	92.1
TTM Earnings per share	Rs	2.8	1.8
Diluted earnings per share	Rs	2.8	1.8
Price to Cash Flow	x	18.5	56.7
TTM P/E ratio	x	43.9	121.2
Price / Book Value ratio	x	1.1	2.1
Market Cap	Rs m	21,164	39,724
Dividends per share (Unadj.)	Rs	0.0	6.3

Ratio Analysis for PURAVANKARA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.2x 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 1.2x during FY24, from 1.2x 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 2.2% during FY24, from 3.3% 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 20.4% during FY24, from 16.9% 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 4.2% during FY24, from 4.3% 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	1.2	1.1
Debtors’ Days	Days	16	8
Interest coverage	x	1.2	1.2
Debt to equity ratio	x	0.2	0.3
Return on assets	%	4.3	4.2
Return on equity	%	3.3	2.2
Return on capital employed	%	16.9	20.4

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

PURAVANKARA Share Price Performance

Over the last one year, PURAVANKARA share price has moved up from Rs 119.9 to Rs 412.0, registering a gain of Rs 292.2 or around 243.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,685.5 (down 1.7%). Over the last one year it has moved up from 4,609.9 to 8,685.5, a gain of 4,076 points (up 88.4%).

Overall, the S&P BSE SENSEX is up 29.6% over the year.

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