RATTANINDIA ENTERPRISES 2022-23 Annual Report Analysis

Wed, 13 Sep

RATTANINDIA ENTERPRISES 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 ENTERPRISES Income Statement Analysis

• Operating income during the year rose 29370.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 5.5% in FY23 as against 156.1% in FY22.
• Depreciation charges increased by 679.3% and finance costs increased by 2603.5% YoY, respectively.
• Other income declined by 97.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 3958.2% in FY22 to 6.9% in FY23.

RATTANINDIA ENTERPRISES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	140	41,238	29,370.4%
Other income	Rs m	5,790	144	-97.5%
Total Revenues	Rs m	5,930	41,382	597.9%
Gross profit	Rs m	-218	-2,286	NA
Depreciation	Rs m	13	99	679.3%
Interest	Rs m	18	493	2,603.5%
Profit before tax	Rs m	5,541	-2,733	NA
Tax	Rs m	2	128	6,183.3%
Profit after tax	Rs m	5,539	-2,861	NA
Gross profit margin	%	-156.1	-5.5
Effective tax rate	%	0.0	-4.7
Net profit margin	%	3,958.2	-6.9

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RATTANINDIA ENTERPRISES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 17 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 885.6%.
• Current assets rose 640% and stood at Rs 15 billion, while fixed assets fell 9% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 9 billion during FY22, thereby witnessing a growth of 141%.

RATTANINDIA ENTERPRISES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,988	4,096	-41.4
Current Liabilities	Rs m	1,750	17,249	885.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,085	21,860	140.6
Current assets	Rs m	2,092	15,482	640.1
Fixed Assets	Rs m	6,993	6,378	-8.8
Total Assets	Rs m	9,085	21,860	140.6

RATTANINDIA ENTERPRISES Cash Flow Statement Analysis

• RATTANINDIA ENTERPRISES's cash flow from operating activities (CFO) during FY23 stood at Rs -7 billion, an improvement of 4,925.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -208 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 7 billion, an improvement of 522% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 303 million from the Rs 18 million net cash flows seen during FY22.

RATTANINDIA ENTERPRISES 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	-135	-6,791	-
Cash Flow from Investing Activities	Rs m	-1,021	-208	-
Cash Flow from Financing Activities	Rs m	1,174	7,301	522.1%
Net Cash Flow	Rs m	18	303	1,619.6%

Current Valuations for RATTANINDIA ENTERPRISES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.1, an decline from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 58.4, stands at 68.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.7 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at -22.6 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	0.1	29.8
TTM Earnings per share	Rs	4.0	-2.1
Diluted earnings per share	Rs	4.0	-2.1
Price to Cash Flow	x	11.5	-22.6
TTM P/E ratio	x	11.2	68.9
Price / Book Value ratio	x	7.4	15.2
Market Cap	Rs m	51,925	62,340
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RATTANINDIA ENTERPRISES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY23, from 1.2x 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 -4.5x during FY23, from 305.1x 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 -69.8% during FY23, from 79.3% 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 -54.7% during FY23, from 79.5% 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 -10.8% during FY23, from 61.2% 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	1.2	0.9
Debtors’ Days	Days	48	4
Interest coverage	x	305.1	-4.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	61.2	-10.8
Return on equity	%	79.3	-69.8
Return on capital employed	%	79.5	-54.7

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

RATTANINDIA ENTERPRISES Share Price Performance

Over the last one year, RATTANINDIA ENTERPRISES share price has moved up from Rs 51.6 to Rs 58.4, registering a gain of Rs 6.8 or around 13.2%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 4,585.7 (down 0.3%). Over the last one year it has moved down from 5,217.1 to 4,585.7, a loss of 631 points (down 12.1%).

Overall, the S&P BSE SENSEX is up 12.0% over the year.

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