RAIN INDUSTRIES 2022-23 Annual Report Analysis

Tue, 9 Apr

RAIN INDUSTRIES has announced its results for the year ended December 2023. Let us have a look at the detailed performance review of the company during FY22-23.

RAIN INDUSTRIES Income Statement Analysis

• Operating income during the year fell 13.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 53.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.3% in CY23 as against 17.1% in CY22.
• Depreciation charges increased by 82.5% and finance costs increased by 56.4% YoY, respectively.
• Other income grew by 70.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 7.5% in CY22 to 4.4% in CY23.

RAIN INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Net Sales	Rs m	210,110	181,415	-13.7%
Other income	Rs m	1,051	1,787	70.0%
Total Revenues	Rs m	211,161	183,202	-13.2%
Gross profit	Rs m	35,827	16,849	-53.0%
Depreciation	Rs m	8,369	15,269	82.5%
Interest	Rs m	5,237	8,191	56.4%
Profit before tax	Rs m	23,273	-4,824	NA
Tax	Rs m	7,504	3,138	-58.2%
Profit after tax	Rs m	15,769	-7,962	NA
Gross profit margin	%	17.1	9.3
Effective tax rate	%	32.2	-65.1
Net profit margin	%	7.5	-4.4

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RAIN INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during CY23 down at Rs 32 billion as compared to Rs 39 billion in CY22, thereby witnessing an decrease of -17.3%.
• Long-term debt down at Rs 73 billion as compared to Rs 78 billion during CY22, a fall of 6.1%.
• Current assets fell 14% and stood at Rs 79 billion, while fixed assets fell 5% and stood at Rs 121 billion in CY23.
• Overall, the total assets and liabilities for CY23 stood at Rs 200 billion as against Rs 219 billion during CY22, thereby witnessing a fall of 9%.

RAIN INDUSTRIES Balance Sheet as on December 2023

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Networth	Rs m	84,268	73,425	-12.9
Current Liabilities	Rs m	39,184	32,420	-17.3
Long-term Debt	Rs m	77,955	73,177	-6.1
Total Liabilities	Rs m	219,451	199,865	-8.9
Current assets	Rs m	92,483	79,088	-14.5
Fixed Assets	Rs m	126,968	120,777	-4.9
Total Assets	Rs m	219,451	199,865	-8.9

RAIN INDUSTRIES Cash Flow Statement Analysis

• RAIN INDUSTRIES's cash flow from operating activities (CFO) during CY23 stood at Rs 31 billion, an improvement of 195.7% on a YoY basis.
• Cash flow from investing activities (CFI) during CY23 stood at Rs -7 billion, an improvement of 5.0% on a YoY basis.
• Cash flow from financial activities (CFF) during CY23 stood at Rs -21 billion on a YoY basis.
• Overall, net cash flows for the company during CY23 stood at Rs 2 billion from the Rs 646 million net cash flows seen during CY22.

RAIN INDUSTRIES Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-22	Dec-23
Cash Flow from Operating Activities	Rs m	10,359	30,635	195.7%
Cash Flow from Investing Activities	Rs m	-6,630	-6,960	-
Cash Flow from Financing Activities	Rs m	-3,957	-21,147	-
Net Cash Flow	Rs m	646	2,375	267.8%

Current Valuations for RAIN INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -23.7, an decline from the EPS of Rs 46.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 154.2, stands at -6.5 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 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Sales per share (Unadj.)	Rs	624.7	539.4
TTM Earnings per share	Rs	46.9	-23.7
Diluted earnings per share	Rs	46.9	-23.7
Price to Cash Flow	x	2.4	7.5
TTM P/E ratio	x	3.6	-6.5
Price / Book Value ratio	x	0.8	0.7
Market Cap	Rs m	64,688	54,833
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for RAIN INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during CY23, from 2.4x during CY22. 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 0.4x during CY23, from 5.4x during CY22. 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 -10.8% during CY23, from 18.7% during CY23. 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 2.3% during CY23, from 17.6% during CY22. 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 0.1% during CY23, from 9.6% during CY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Current ratio	x	2.4	2.4
Debtors’ Days	Days	43	44
Interest coverage	x	5.4	0.4
Debt to equity ratio	x	0.9	1.0
Return on assets	%	9.6	0.1
Return on equity	%	18.7	-10.8
Return on capital employed	%	17.6	2.3

To see how RAIN INDUSTRIES has performed over the last 5 years, please visit here.

RAIN INDUSTRIES Share Price Performance

Over the last one year, RAIN INDUSTRIES share price has moved down from Rs 193.9 to Rs 149.0, registering a loss of Rs 44.9 or around 23.1%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for RAIN INDUSTRIES and quarterly results for RAIN INDUSTRIES)