RAJESH EXPORTS 2019-20 Annual Report Analysis

Tue, 31 Mar

RAJESH EXPORTS has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

RAJESH EXPORTS Income Statement Analysis

• Operating income during the year rose 11.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.8% in FY20 as against 1.0% in FY19.
• Depreciation charges decreased by 2.3% and finance costs decreased by 49.6% YoY, respectively.
• Other income declined by 89.5% YoY.
• Net profit for the year declined by 6.7% YoY.
• Net profit margins during the year declined from 0.7% in FY19 to 0.6% in FY20.

RAJESH EXPORTS Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	1,757,631	1,956,002	11.3%
Other income	Rs m	675	71	-89.5%
Total Revenues	Rs m	1,758,307	1,956,072	11.2%
Gross profit	Rs m	17,941	15,493	-13.6%
Depreciation	Rs m	743	726	-2.3%
Interest	Rs m	4,417	2,225	-49.6%
Profit before tax	Rs m	13,457	12,613	-6.3%
Tax	Rs m	535	554	3.5%
Profit after tax	Rs m	12,921	12,058	-6.7%
Gross profit margin	%	1.0	0.8
Effective tax rate	%	4.0	4.4
Net profit margin	%	0.7	0.6

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RAJESH EXPORTS Balance Sheet Analysis

• The company's current liabilities during FY20 stood at Rs 201 billion as compared to Rs 198 billion in FY19, thereby witnessing an increase of 1.5%.
• Current assets rose 7% and stood at Rs 280 billion, while fixed assets rose 5% and stood at Rs 27 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 307 billion as against Rs 288 billion during FY19, thereby witnessing a growth of 7%.

RAJESH EXPORTS Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	88,400	105,339	19.2
Current Liabilities	Rs m	197,813	200,869	1.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	288,415	307,276	6.5
Current assets	Rs m	262,401	280,031	6.7
Fixed Assets	Rs m	26,014	27,246	4.7
Total Assets	Rs m	288,415	307,276	6.5

RAJESH EXPORTS Cash Flow Statement Analysis

• RAJESH EXPORTS's cash flow from operating activities (CFO) during FY20 stood at Rs 26 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -52 billion on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs -23 billion from the Rs 6 billion net cash flows seen during FY19.

RAJESH EXPORTS Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-19	Mar-20
Cash Flow from Operating Activities	Rs m	34,824	25,724	-26.1%
Cash Flow from Investing Activities	Rs m	-3,014	-1,936	-
Cash Flow from Financing Activities	Rs m	-29,900	-51,723	-
Net Cash Flow	Rs m	5,939	-22,758	-

Current Valuations for RAJESH EXPORTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.8, an decline from the EPS of Rs 43.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 542.2, stands at 13.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 15.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Sales per share (Unadj.)	Rs	5,952.8	6,624.7
TTM Earnings per share	Rs	43.8	40.8
Diluted earnings per share	Rs	43.8	40.8
Price to Cash Flow	x	14.4	15.3
TTM P/E ratio	x	15.2	13.3
Price / Book Value ratio	x	2.2	1.9
Market Cap	Rs m	196,473	195,610
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for RAJESH EXPORTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY20, from 1.3x during FY19. 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 6.7x during FY20, from 4.0x during FY19. 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 11.4% during FY20, from 14.6% during FY20. 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 14.1% during FY20, from 20.2% during FY19. 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 4.6% during FY20, from 6.0% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Current ratio	x	1.3	1.4
Debtors’ Days	Days	128	174
Interest coverage	x	4.0	6.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.0	4.6
Return on equity	%	14.6	11.4
Return on capital employed	%	20.2	14.1

To see how RAJESH EXPORTS has performed over the last 5 years, please visit here.

RAJESH EXPORTS Share Price Performance

Over the last one year, RAJESH EXPORTS share price has moved down from Rs 666.2 to Rs 542.2, registering a loss of Rs 124.0 or around 18.6%.

Overall, the S&P BSE SENSEX is down 24.2% over the year.

(To know more, check out historical annual results for RAJESH EXPORTS and quarterly results for RAJESH EXPORTS)

Read: Latest Annual Report Analysis of RAJESH EXPORTS