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B.N.RATHI SE 2022-23 Annual Report Analysis

Wed, 7 Jun

B.N.RATHI SE 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.

B.N.RATHI SE Income Statement Analysis

• Operating income during the year rose 5.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 71.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.4% in FY23 as against 9.4% in FY22.
• Depreciation charges increased by 16.7% and finance costs increased by 49.4% YoY, respectively.
• Other income grew by 37.3% YoY.
• Net profit for the year grew by 51.4% YoY.
• Net profit margins during the year grew from 13.0% in FY22 to 18.7% in FY23.

B.N.RATHI SE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	386	405	5.0%
Other income	Rs m	46	64	37.3%
Total Revenues	Rs m	432	469	8.5%
Gross profit	Rs m	36	62	71.8%
Depreciation	Rs m	3	4	16.7%
Interest	Rs m	13	19	49.4%
Profit before tax	Rs m	67	104	54.7%
Tax	Rs m	17	28	64.4%
Profit after tax	Rs m	50	76	51.4%
Gross profit margin	%	9.4	15.4
Effective tax rate	%	25.4	27.0
Net profit margin	%	13.0	18.7

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B.N.RATHI SE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 3.8%.
• Current assets rose 6% and stood at Rs 2 billion, while fixed assets rose 9% and stood at Rs 71 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 1 billion during FY22, thereby witnessing a growth of 6%.

B.N.RATHI SE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	367	439	19.7
Current Liabilities	Rs m	1,103	1,144	3.8
Long-term Debt	Rs m	16	0	-100.0
Total Liabilities	Rs m	1,493	1,585	6.2
Current assets	Rs m	1,428	1,514	6.0
Fixed Assets	Rs m	65	71	9.2
Total Assets	Rs m	1,493	1,585	6.2

B.N.RATHI SE Cash Flow Statement Analysis

• B.N.RATHI SE's cash flow from operating activities (CFO) during FY23 stood at Rs -51 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 113 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -42 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 20 million from the Rs 246 million net cash flows seen during FY22.

B.N.RATHI SE 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	412	-51	-
Cash Flow from Investing Activities	Rs m	-228	113	-
Cash Flow from Financing Activities	Rs m	63	-42	-
Net Cash Flow	Rs m	246	20	-91.9%

Current Valuations for B.N.RATHI SE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.0, an improvement from the EPS of Rs 6.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 38.5, stands at 4.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 4.0 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	45.9	48.2
TTM Earnings per share	Rs	6.0	9.0
Diluted earnings per share	Rs	6.0	9.0
Price to Cash Flow	x	5.4	4.0
TTM P/E ratio	x	5.6	4.3
Price / Book Value ratio	x	0.9	0.7
Market Cap	Rs m	336	314
Dividends per share (Unadj.)	Rs	1.0	1.5

Ratio Analysis for B.N.RATHI SE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.3x 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 6.5x during FY23, from 6.4x 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 17.3% during FY23, from 13.7% 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 27.9% during FY23, from 20.8% 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 6.0% during FY23, from 4.2% 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	1.3	1.3
Debtors’ Days	Days	998	701
Interest coverage	x	6.4	6.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.2	6.0
Return on equity	%	13.7	17.3
Return on capital employed	%	20.8	27.9

To see how B.N.RATHI SE has performed over the last 5 years, please visit here.

B.N.RATHI SE Share Price Performance

Over the last one year, B.N.RATHI SE share price has moved up from Rs 33.8 to Rs 38.5, registering a gain of Rs 4.7 or around 14.0%.

Overall, the S&P BSE SENSEX is up 12.9% over the year.

(To know more, check out historical annual results for B.N.RATHI SE and quarterly results for B.N.RATHI SE)