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RALLIS 2022-23 Annual Report Analysis
Thu, 25 May

RALLIS 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.

RALLIS Income Statement Analysis

  • Operating income during the year rose 13.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 19.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.4% in FY23 as against 10.5% in FY22.
  • Depreciation charges increased by 22.9% and finance costs increased by 106.8% YoY, respectively.
  • Other income declined by 57.0% YoY.
  • Net profit for the year declined by 44.0% YoY.
  • Net profit margins during the year declined from 6.3% in FY22 to 3.1% in FY23.

RALLIS Income Statement 2022-23

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Net Sales Rs m 26,039 29,670 13.9%
Other income Rs m 296 127 -57.0%
Total Revenues Rs m 26,335 29,797 13.1%
Gross profit Rs m 2,738 2,205 -19.5%
Depreciation Rs m 743 914 22.9%
Interest Rs m 67 138 106.8%
Profit before tax Rs m 2,224 1,281 -42.4%
Tax Rs m 582 361 -37.9%
Profit after tax Rs m 1,642 919 -44.0%
Gross profit margin % 10.5 7.4
Effective tax rate % 26.2 28.2
Net profit margin % 6.3 3.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

RALLIS Balance Sheet Analysis

  • The company's current liabilities during FY23 down at Rs 11 billion as compared to Rs 11 billion in FY22, thereby witnessing an decrease of -1.5%.
  • Long-term debt down at Rs 27 million as compared to Rs 38 million during FY22, a fall of 29.8%.
  • Current assets fell 4% and stood at Rs 17 billion, while fixed assets rose 18% and stood at Rs 13 billion in FY23.
  • Overall, the total assets and liabilities for FY23 stood at Rs 30 billion as against Rs 29 billion during FY22, thereby witnessing a growth of 4%.

RALLIS Balance Sheet as on March 2023

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Networth Rs m 16,967 17,301 2.0
 
Current Liabilities Rs m 10,767 10,604 -1.5
Long-term Debt Rs m 38 27 -29.8
Total Liabilities Rs m 28,580 29,746 4.1
 
Current assets Rs m 17,898 17,119 -4.4
Fixed Assets Rs m 10,641 12,586 18.3
Total Assets Rs m 28,580 29,746 4.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



RALLIS Cash Flow Statement Analysis

  • RALLIS's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 30.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 36.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY23 stood at Rs -410 million, an improvement of 33% on a YoY basis.
  • Overall, net cash flows for the company during FY23 stood at Rs 337 million from the Rs 3 million net cash flows seen during FY22.

RALLIS 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 1,658 2,168 30.8%
Cash Flow from Investing Activities Rs m -1,042 -1,421 -
Cash Flow from Financing Activities Rs m -614 -410 -
Net Cash Flow Rs m 3 337 12,511.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for RALLIS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.7, an decline from the EPS of Rs 8.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 189.8, stands at 40.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 25.0 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 133.9 152.6
TTM Earnings per share Rs 8.4 4.7
Diluted earnings per share Rs 8.4 4.7
Price to Cash Flow x 19.4 25.0
TTM P/E ratio x 28.2 40.1
Price / Book Value ratio x 3.4 2.7
Market Cap Rs m 57,252 45,865
Dividends per share (Unadj.) Rs 3.0 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for RALLIS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.7x 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 10.3x during FY23, from 34.3x 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 5.3% during FY23, from 9.7% 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 8.2% during FY23, from 13.5% 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 3.6% during FY23, from 6.0% 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 1.7 1.6
Debtors’ Days Days 625 613
Interest coverage x 34.3 10.3
Debt to equity ratio x 0.0 0.0
Return on assets % 6.0 3.6
Return on equity % 9.7 5.3
Return on capital employed % 13.5 8.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

RALLIS Share Price Performance

Over the last one year, RALLIS share price has moved down from Rs 196.9 to Rs 189.8, registering a loss of Rs 7.1 or around 3.6%.

Overall, the S&P BSE SENSEX is up 13.4% over the year.

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

Annual Report FAQs

What is the current share price of RALLIS?

RALLIS currently trades at Rs 250.6 per share. You can check out the latest share price performance of RALLIS here...

What was the revenue of RALLIS in FY23? How does it compare to earlier years?

The revenues of RALLIS stood at Rs 29,797 m in FY23, which was up 13.1% compared to Rs 26,335 m reported in FY22.

RALLIS' revenue has grown from Rs 20,146 m in FY19 to Rs 29,797 m in FY23.

Over the past 5 years, the revenue of RALLIS has grown at a CAGR of 10.3%.

What was the net profit of RALLIS in FY23? How does it compare to earlier years?

The net profit of RALLIS stood at Rs 919 m in FY23, which was down -44.0% compared to Rs 1,642 m reported in FY22.

This compares to a net profit of Rs 2,286 m in FY21 and a net profit of Rs 1,837 m in FY20.

Over the past 5 years, RALLIS net profit has grown at a CAGR of -12.2%.

What does the cash flow statement of RALLIS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of RALLIS reveals:

  • Cash flow from operations increased in FY23 and stood at Rs 2,168 m as compared to Rs 1,658 m in FY22.
  • Cash flow from investments decreased in FY23 and stood at Rs -1,421 m as compared to Rs -1,042 m in FY22.
  • Cash flow from financial activity increased in FY23 and stood at Rs -410 m as compared to Rs -614 m in FY22.

Here's the cash flow statement of RALLIS for the past 5 years.

(Rs m)FY19FY20FY21FY22FY23
From Operations8013,3682,1671,6582,168
From Investments-514-2,459-1,615-1,042-1,421
From Financial Activity-515-744-674-614-410
Net Cashflow-229165-1223337

What does the Key Ratio analysis of RALLIS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of RALLIS reveals:

  • Operating profit margins witnessed a fall and stood at 7.4% in FY23 as against 10.5% in FY22.
  • Net profit margins declined from 6.3% in FY22 to 3.1% in FY23.
  • Debt to Equity ratio for FY23 stood at 0.0 as compared to 0.0 in FY22.

Here's the ratio/financial analysis of RALLIS for the past 5 years.

 FY19FY20FY21FY22FY23
Operating Profit Margin (%)12.312.213.710.57.4
Net Profit Margin (%)7.88.29.46.33.1
Debt to Equity Ratio (x)0.00.00.00.00.0

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