RPSG VENTURES 2022-23 Annual Report Analysis

Mon, 24 Jul

RPSG VENTURES 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.

RPSG VENTURES Income Statement Analysis

• Operating income during the year rose 7.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 16.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.7% in FY23 as against 14.9% in FY22.
• Depreciation charges increased by 4.8% and finance costs increased by 161.1% YoY, respectively.
• Other income grew by 823.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 5.1% in FY22 to 0.8% in FY23.

RPSG VENTURES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	66,701	71,662	7.4%
Other income	Rs m	154	1,418	823.8%
Total Revenues	Rs m	66,854	73,080	9.3%
Gross profit	Rs m	9,958	8,355	-16.1%
Depreciation	Rs m	2,913	3,053	4.8%
Interest	Rs m	2,113	5,517	161.1%
Profit before tax	Rs m	5,085	1,202	-76.4%
Tax	Rs m	1,699	1,793	5.5%
Profit after tax	Rs m	3,386	-590	NA
Gross profit margin	%	14.9	11.7
Effective tax rate	%	33.4	149.1
Net profit margin	%	5.1	-0.8

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RPSG VENTURES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 38 billion as compared to Rs 30 billion in FY22, thereby witnessing an increase of 29.0%.
• Long-term debt stood at Rs 9 billion as compared to Rs 8 billion during FY22, a growth of 5.9%.
• Current assets rose 14% and stood at Rs 22 billion, while fixed assets rose 1% and stood at Rs 106 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 129 billion as against Rs 125 billion during FY22, thereby witnessing a growth of 3%.

RPSG VENTURES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	24,989	23,704	-5.1
Current Liabilities	Rs m	29,512	38,056	29.0
Long-term Debt	Rs m	8,268	8,752	5.9
Total Liabilities	Rs m	125,196	128,638	2.7
Current assets	Rs m	19,538	22,307	14.2
Fixed Assets	Rs m	105,659	106,332	0.6
Total Assets	Rs m	125,196	128,638	2.7

RPSG VENTURES Cash Flow Statement Analysis

• RPSG VENTURES's cash flow from operating activities (CFO) during FY23 stood at Rs 7 billion, an improvement of 9.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -7 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 billion from the Rs 638 million net cash flows seen during FY22.

RPSG VENTURES 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	6,623	7,256	9.6%
Cash Flow from Investing Activities	Rs m	-14,535	-7,174	-
Cash Flow from Financing Activities	Rs m	8,549	2,523	-70.5%
Net Cash Flow	Rs m	638	2,587	305.3%

Current Valuations for RPSG VENTURES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -20.0, an decline from the EPS of Rs 127.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 467.6, stands at -15.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 6.3 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	2,516.1	2,428.4
TTM Earnings per share	Rs	127.7	-20.0
Diluted earnings per share	Rs	114.7	-20.0
Price to Cash Flow	x	2.7	6.3
TTM P/E ratio	x	7.5	-15.1
Price / Book Value ratio	x	0.8	0.7
Market Cap	Rs m	19,461	15,415
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RPSG VENTURES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY23, from 0.7x 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 deteriorated and stood at 1.2x during FY23, from 3.4x 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 declined and down at -2.5% during FY23, from 13.5% 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 declined and down at 20.7% during FY23, from 21.6% 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 declined and down at 3.8% during FY23, from 4.4% 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	0.7	0.6
Debtors’ Days	Days	6	6
Interest coverage	x	3.4	1.2
Debt to equity ratio	x	0.3	0.4
Return on assets	%	4.4	3.8
Return on equity	%	13.5	-2.5
Return on capital employed	%	21.6	20.7

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

RPSG VENTURES Share Price Performance

Over the last one year, RPSG VENTURES share price has moved down from Rs 530.6 to Rs 467.6, registering a loss of Rs 63.1 or around 11.9%.

Overall, the S&P BSE SENSEX is up 20.0% over the year.

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