PPAP Automotive

13 May 2022 , 06:00 PM

For the quarter ending March 2022, consolidated net sales (including other operating income) of PPAP Automotive has increased 7.45% to Rs 122.62 crore compared to quarter ended march 2021. 
Operating profit margin has declined from 14.80% to 9.88%, leading to 28.24% decline in operating profit to Rs 12.12 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 56.74% to 57.86%.   Purchase of finished goods cost rose from 0.04% to 0.08%.   Employee cost increased from 15.53% to 16.78%.   Other expenses rose from 12.85% to 14.45%.   Other income fell 82.04% to Rs 0.3 crore.  PBIDT fell 33.08% to Rs 12.42 crore.  Provision for interest rose 61.29% to Rs 2 crore.  Loan funds rose to Rs 109.70 crore as of 31 March 2022 from Rs 52.17 crore as of 31 March 2021.  Inventories rose to Rs 56.06 crore as of 31 March 2022 from Rs 44.96 crore as of 31 March 2021.  Sundry debtors were lower at Rs 55.86 crore as of 31 March 2022 compared to Rs 60.40 crore as of 31 March 2021.  Cash and bank balance declined from Rs 1.52 crore as of 31 March 2021 to Rs 0.57 crore as of 31 March 2022.  Investments declined from Rs 46.42 crore as of 31 March 2021 to Rs 45.63 crore as of 31 March 2022.  PBDT fell 39.84% to Rs 10.42 crore.  Provision for depreciation rose 10.06% to Rs 7.33 crore.  Fixed assets increased to Rs 296.26 crore as of 31 March 2022 from Rs 255.00 crore as of 31 March 2021.  Intangible assets increased from Rs 9.21 crore to Rs 9.52 crore.  Profit before tax down 71.01% to Rs 3.09 crore.  Share of profit/loss was 36.89% lower at Rs -1.41 crore.  Provision for tax was expense of Rs 0.82 crore, compared to Rs 2.6 crore.  Effective tax rate was 48.81% compared to 27.00%.Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 87.77% to Rs 0.86 crore.  Equity capital stood at Rs 14.00 crore as of 31 March 2022 to Rs 14.00 crore as of 31 March 2021.  Per share face Value remained same at Rs 10.00.  Promoters stake was 64.87% as of 31 March 2022 ,compared to 64.78% as of 31 March 2021 .  

Full year results analysis.

Net sales (including other operating income) of PPAP Automotive has increased 30.95% to Rs 421.92 crore.  Operating profit margin has declined from 10.21% to 9.15%, leading to 17.33% rise in operating profit to Rs 38.60 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 56.32% to 60.37%.   Purchase of finished goods cost rose from 0.05% to 0.09%.   Employee cost decreased from 19.49% to 17.20%.   Other expenses fell from 13.82% to 13.15%.   Other income fell 52.38% to Rs 1 crore.  PBIDT rose 13.14% to Rs 39.6 crore.  Provision for interest rose 72.22% to Rs 6.51 crore.  Loan funds rose to Rs 109.70 crore as of 31 March 2022 from Rs 52.17 crore as of 31 March 2021.  Inventories rose to Rs 56.06 crore as of 31 March 2022 from Rs 44.96 crore as of 31 March 2021.  Sundry debtors were lower at Rs 55.86 crore as of 31 March 2022 compared to Rs 60.40 crore as of 31 March 2021.  Cash and bank balance declined from Rs 1.52 crore as of 31 March 2021 to Rs 0.57 crore as of 31 March 2022.  Investments declined from Rs 46.42 crore as of 31 March 2021 to Rs 45.63 crore as of 31 March 2022.  PBDT rose 5.99% to Rs 33.09 crore.  Provision for depreciation rose 11.33% to Rs 29.47 crore.  Fixed assets increased to Rs 296.26 crore as of 31 March 2022 from Rs 255.00 crore as of 31 March 2021.  Intangible assets increased from Rs 9.21 crore to Rs 9.52 crore.  Profit before tax down 23.79% to Rs 3.62 crore.  Share of profit/loss was 129.61% lower at Rs -3.49 crore.  Provision for tax was expense of Rs 0.92 crore, compared to Rs 1.13 crore.  Effective tax rate was 707.69% compared to 34.98%.Minority interest was nil in both the periods.  Equity capital stood at Rs 14.00 crore as of 31 March 2022 to Rs 14.00 crore as of 31 March 2021.  Per share face Value remained same at Rs 10.00.  Promoters stake was 64.87% as of 31 March 2022 ,compared to 64.78% as of 31 March 2021 .  Cash flow from operating activities increased to Rs 28.03 crore for year ended March 2022 from Rs 26.44 crore for year ended March 2021.  Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 69.21 crore, compared to Rs 40.10 crore during the year ended March 2021.   Other Highlights The Board has recommended final dividend of Rs 1.50 per equity share of Rs 10 each for financial year ended 31st March, 2022. In Q4 FY22, parts segment contributed 94.8% of total sales and Tools and others contributed 6.2%. For FY22, parts segment contributed 92.5% of total sales and Tools and others contributed 7.5%. The Company has ventured into development of parts and accessories for aftermarket. Currently, this segment contributes 3% of revenue and is expected to increase to 10% by FY24 The capacity utilization for the full year stood at 64%.
Management Comments :
Mr. Ajay Kumar Jain, Chairman & MD of PPAP Automotive Ltd said: ?Financial Year 2022 has been a challenging year for the Industry. The industry encountered many challenges emerging from the deadly second wave of Covid, semi conductor shortages as well as the Russia-Ukraine war. Despite all these unprecedented challenges, Companys operating income grew by 27.4% on standalone basis and 30.9% on a consolidated basis in FY22. The demand for vehicles continues to be strong. The semi conductor shortage seems to be easing. Although it may take another year to completely come out of this risk. With easing of covid related restrictions, there is positive outlook all over. Due to increase in demand, the capacity utilization of the company increased to 72% in Q4FY22. With our focus on achieving higher growth through addition of new customers and continual improvement in operation efficiency, company has been able to maintain an EBITDA margin at 10.4% in this quarter. The industry is facing unprecedented challenges to manage its supply chain arising out of the geo-political tensions, started in the last quarter.?

PPAP Automotive : Consolidated Results

Quarter ended Year ended Particulars 202203 202103 Var.(%) 202203 202103 Var.(%) Net Sales (including other operating income) 122.62 114.12 7.45 421.92 322.20 30.95 OPM (%) 9.88 14.80 -492 bps 9.15 10.21 -106 bps OP 12.12 16.89 -28.24 38.60 32.90 17.33 Other Inc. 0.30 1.67 -82.04 1.00 2.10 -52.38 PBIDT 12.42 18.56 -33.08 39.60 35.00 13.14 Interest 2.00 1.24 61.29 6.51 3.78 72.22 PBDT 10.42 17.32 -39.84 33.09 31.22 5.99 Depreciation 7.33 6.66 10.06 29.47 26.47 11.33 PBT 3.09 10.66 -71.01 3.62 4.75 -23.79 Share of Profit/(Loss) from Associates -1.41 -1.03 -36.89 -3.49 -1.52 -129.61 PBT before EO 1.68 9.63 -82.55 0.13 3.23 -95.98 EO Income 0 0 – 0 0 – PBT after EO 1.68 9.63 -82.55 0.13 3.23 -95.98 Taxation 0.82 2.6 -68.46 0.92 1.13 -18.58 PAT 0.86 7.03 -87.77 -0.79 2.1 PL Minority Interest (MI) 0 0 – 0 0 – Net profit 0.86 7.03 -87.77 -0.79 2.1 PL P/(L) from discontinued operations net of tax 0 0 – 0 0 – Net profit after discontinued operations 0.86 7.03 -87.77 -0.79 2.1 PL EPS (Rs)* 0.61 5.02 -87.77 -0.56 1.50 PL * EPS is on current equity of Rs 14.00 crore, Face value of Rs 10, Excluding extraordinary items. EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

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