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Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 0.82 % in the past year, decrease in net sales/revenue by -19.24 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 101.9 %. Marginal increase in other income during this quarter, up by 16%.
- Profit over the Year and quarter: Significant improvement in profitability for Prima Plastics Ltd.. Notable increase of 9.94 % in net profit Year to Year, Prima Plastics Ltd.’s profitability dropped by -44.8 % Quarter to Quarter.
- EPS over the Year and quarter: EPS increased by 11.40 % Year to Year. EPS decreased by -44.75 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 40.633 Cr | Rs. 50.727 Cr | Rs. 40.965 Cr | -19.24 % | + 0.82 % |
| Expenses | Rs. 34.69 Cr | Rs. 40.89 Cr | Rs. 36.2 Cr | -11.47 % | + 4.35 % |
| Operating Profit | Rs. 5.94 Cr | Rs. 9.84 Cr | Rs. 4.76 Cr | -51.63 % | -19.87 % |
| OPM % | 14.62 % | 19.4 % | 11.62 % | -7.78 % | -3 % |
| Other Income | Rs. 1.16 Cr | Rs. 2.019 Cr | Rs. 2.342 Cr | + 16 % | + 101.9 % |
| Interest | Rs. 0.93 Cr | Rs. 0.93 Cr | Rs. 0.85 Cr | -8.6 % | -8.6 % |
| Depreciation | Rs. 1.77 Cr | Rs. 1.63 Cr | Rs. 1.62 Cr | -0.61 % | -8.47 % |
| Profit before tax | Rs. 4.4 Cr | Rs. 9.3 Cr | Rs. 4.63 Cr | -50.22 % | + 5.23 % |
| Tax % | 22.81 % | 27.6 % | 26.14 % | -1.46 % | + 3.33 % |
| Net Profit | Rs. 3.65 Cr | Rs. 7.28 Cr | Rs. 4.02 Cr | -44.78 % | + 10.14 % |
| EPS in Rs | Rs. 3.07 | Rs. 6.19 | Rs. 3.42 | -44.75 % | + 11.4 % |
Today, we’re looking at Prima Plastics Ltd.’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 0.82 %. However, it did see a marginal slip of -19.24 % from the previous quarter. Expenses decreased slightly by -11.47 % quarter-on-quarter, aligning with the annual rise of 4.35 %. Operating profit, while down -19.87 % compared to last year, faced a quarter-on-quarter dip of -51.63 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -3 %, but a shrinkage of -7.78 % sequentially. Other income rose by 16 % compared to the last quarter, despite an annual growth of 101.9 %. Interest expenses dropped significantly by -8.6 % from the previous quarter, yet the year-over-year decrease remains at a moderate -8.6 %. Depreciation costs fell by -0.61 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -8.47 %. Profit before tax grew annually by 5.23 % but saw a reduction from the preceding quarter by -50.22 %.
Tax expenses as a percentage of profits increased slightly by 3.33 % compared to last year, with a more notable quarter-on-quarter decrease of -1.46 %. Net profit rose by 10.14 % year-on-year but witnessed a -44.78 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 11.4 % but a quarterly fall of -44.75 %. In summary, Prima Plastics Ltd.’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 40.633 Cr | Rs. 50.727 Cr | Rs. 40.965 Cr | -19.24 % | + 0.82 % |
| Expenses | Rs. 34.69 Cr | Rs. 40.89 Cr | Rs. 36.2 Cr | -11.47 % | + 4.35 % |
| Operating Profit | Rs. 5.94 Cr | Rs. 9.84 Cr | Rs. 4.76 Cr | -51.63 % | -19.87 % |
| Net Profit | Rs. 3.65 Cr | Rs. 7.28 Cr | Rs. 4.02 Cr | -44.78 % | + 10.14 % |
| EPS in Rs | Rs. 3.07 | Rs. 6.19 | Rs. 3.42 | -44.75 % | + 11.4 % |
In reviewing Prima Plastics Ltd.’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 0.82 % year-on-year growth, although there was a slight dip of -19.24 % from the previous quarter. Expenses rose by 4.35 % compared to the previous year, with a decrease of -11.47 % quarter-on-quarter. Operating Profit dropped by -19.87 % annually, and saw a -51.63 % decrease from the last quarter.
Net Profit showed yearly increase of 10.14 %, and experienced a -44.78 % decrease from the previous quarter. Earnings Per Share (EPS) rose by 11.4 % annually, however dipped by -44.75 % compared to the last quarter. In essence, while Prima Plastics Ltd. exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
-4
3-Year Profit
-7
5-Year Profit
2
10-Year Profit
175
Current Price
193
Market Cap
In analyzing the financial results for the company marked by BSE code 530589, a clear trend emerges. Over a five-year span, the company reported a profit of -7 percents, which increased to -4 percents in the most recent three-year period, suggesting a strong performance in the early stages of this timeframe. However, this success has been overshadowed by a trailing twelve-month (TTM) loss of -51 percents, signaling significant recent challenges. Compounding this issue is the fact that the company has not reported any sales during any of the timeframes analyzed, raising important questions about its operational model and the sustainability of its current strategies. Investors have been equally wary, as reflected in the stock price performance. The company’s stock traded at 22 percents over the past five years but has recently decreased to -2 percents, indicating a loss of market confidence. Over the last decade, the stock price was at 12 percents, pointing to longer-term concerns that could affect the company's future prospects.
The company has a market capitalization of ₹193 crore and is currently trading at a stock price of ₹175. Over time, the stock has fluctuated between the historical highs and lows of ₹254 / 146, reflecting the market's volatility. With a Price-to-Earnings (P/E) ratio of 8.68, the stock appears highly valued, indicating that investors are willing to pay a premium for its earnings potential. The company's book value per share stands at ₹140, showcasing the underlying asset value. Additionally, the dividend yield is 1.14%, suggesting that the company offers shareholders a moderate return on their investment in the form of dividends. The Return on Capital Employed (ROCE) is 17.0%, indicating the efficiency with which the company generates profit from its capital. Meanwhile, the Return on Equity (ROE) is 15.0%, highlighting the profitability relative to shareholder equity. Despite these figures, the company maintains a very low debt-to-equity ratio of 0.24, signaling minimal leverage. It also reports a net cash flow of ₹9.08 crore, reflecting the company's ability to generate cash. The Piotroski score is 9.00, a measure of the company's financial strength, while the Graham Number estimates the intrinsic value of the stock at ₹252. The Price-to-Book (P/B) ratio of 1.25 further suggests that the stock is trading at a premium relative to its book value, potentially reflecting positive market sentiment or expectations of future growth.
