RATTANINDIA POWER 2022-23 Annual Report Analysis

Wed, 13 Sep

RATTANINDIA POWER 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.

RATTANINDIA POWER Income Statement Analysis

• Operating income during the year fell 0.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 102.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.8% in FY23 as against 11.2% in FY22.
• Depreciation charges decreased by 2.4% and finance costs increased by 7.3% YoY, respectively.
• Other income declined by 19.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 60.8% in FY22 to 57.9% in FY23.

RATTANINDIA POWER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	32,595	32,312	-0.9%
Other income	Rs m	4,096	3,282	-19.9%
Total Revenues	Rs m	36,692	35,594	-3.0%
Gross profit	Rs m	3,652	7,383	102.2%
Depreciation	Rs m	4,145	4,044	-2.4%
Interest	Rs m	23,418	25,116	7.3%
Profit before tax	Rs m	-19,814	-18,495	NA
Tax	Rs m	0	204	0.0
Profit after tax	Rs m	-19,814	-18,699	NA
Gross profit margin	%	11.2	22.8
Effective tax rate	%	0.0	-1.1
Net profit margin	%	-60.8	-57.9

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RATTANINDIA POWER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 184 billion as compared to Rs 122 billion in FY22, thereby witnessing an increase of 51.4%.
• Long-term debt down at Rs 26 billion as compared to Rs 71 billion during FY22, a fall of 64.2%.
• Current assets rose 1% and stood at Rs 31 billion, while fixed assets fell 2% and stood at Rs 143 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 174 billion as against Rs 177 billion during FY22, thereby witnessing a fall of 2%.

RATTANINDIA POWER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-26,622	-45,329	NA
Current Liabilities	Rs m	121,683	184,203	51.4
Long-term Debt	Rs m	71,299	25,539	-64.2
Total Liabilities	Rs m	176,584	173,719	-1.6
Current assets	Rs m	30,840	31,107	0.9
Fixed Assets	Rs m	145,743	142,612	-2.1
Total Assets	Rs m	176,584	173,719	-1.6

RATTANINDIA POWER Cash Flow Statement Analysis

• RATTANINDIA POWER's cash flow from operating activities (CFO) during FY23 stood at Rs 10 billion, an improvement of 8.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -53 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -10 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 332 million from the Rs 369 million net cash flows seen during FY22.

RATTANINDIA POWER 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	9,341	10,154	8.7%
Cash Flow from Investing Activities	Rs m	586	-53	-
Cash Flow from Financing Activities	Rs m	-9,558	-9,770	-
Net Cash Flow	Rs m	369	332	-10.1%

Current Valuations for RATTANINDIA POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.5, an improvement from the EPS of Rs -3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6.5, stands at -1.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.8 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at -1.7 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	6.1	6.0
TTM Earnings per share	Rs	-3.7	-3.5
Diluted earnings per share	Rs	-3.7	-3.5
Price to Cash Flow	x	-1.8	-1.7
TTM P/E ratio	x	-1.4	-1.7
Price / Book Value ratio	x	-1.2	-0.6
Market Cap	Rs m	33,160	25,427
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RATTANINDIA POWER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.2x during FY23, from 0.3x 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 0.3x during FY23, from 0.2x 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 41.3% during FY23, from 74.4% 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 -33.5% during FY23, from 8.1% 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 3.7% during FY23, from 2.0% 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	0.3	0.2
Debtors’ Days	Days	2,810	2,815
Interest coverage	x	0.2	0.3
Debt to equity ratio	x	-2.7	-0.6
Return on assets	%	2.0	3.7
Return on equity	%	74.4	41.3
Return on capital employed	%	8.1	-33.5

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

RATTANINDIA POWER Share Price Performance

Over the last one year, RATTANINDIA POWER share price has moved up from Rs 5.6 to Rs 6.5, registering a gain of Rs 1.0 or around 17.7%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,581.2 (down 0.4%). Over the last one year it has moved down from 5,217.1 to 4,581.2, a loss of 636 points (down 12.2%).

Overall, the S&P BSE SENSEX is up 11.9% over the year.

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