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RANE MADRAS 2022-23 Annual Report Analysis

Mon, 10 Jul

RANE MADRAS 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.

RANE MADRAS Income Statement Analysis

• Operating income during the year rose 35.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.3% in FY23 as against 7.0% in FY22.
• Depreciation charges increased by 19.2% and finance costs increased by 68.7% YoY, respectively.
• Other income grew by 212.2% YoY.
• Net profit for the year grew by 181.6% YoY.
• Net profit margins during the year grew from 0.6% in FY22 to 1.3% in FY23.

RANE MADRAS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	17,419	23,544	35.2%
Other income	Rs m	57	179	212.2%
Total Revenues	Rs m	17,476	23,723	35.7%
Gross profit	Rs m	1,214	1,720	41.6%
Depreciation	Rs m	810	966	19.2%
Interest	Rs m	206	348	68.7%
Profit before tax	Rs m	255	585	129.0%
Tax	Rs m	149	284	91.3%
Profit after tax	Rs m	107	300	181.6%
Gross profit margin	%	7.0	7.3
Effective tax rate	%	58.2	48.6
Net profit margin	%	0.6	1.3

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RANE MADRAS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 7 billion in FY22, thereby witnessing an increase of 13.9%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY22, a growth of 4.2%.
• Current assets rose 19% and stood at Rs 8 billion, while fixed assets rose 2% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 12 billion during FY22, thereby witnessing a growth of 11%.

RANE MADRAS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,281	2,417	5.9
Current Liabilities	Rs m	7,247	8,256	13.9
Long-term Debt	Rs m	2,345	2,444	4.2
Total Liabilities	Rs m	12,446	13,789	10.8
Current assets	Rs m	6,431	7,639	18.8
Fixed Assets	Rs m	6,015	6,149	2.2
Total Assets	Rs m	12,446	13,789	10.8

RANE MADRAS Cash Flow Statement Analysis

• RANE MADRAS's cash flow from operating activities (CFO) during FY23 stood at Rs 876 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 351 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 167 million from the Rs 50 million net cash flows seen during FY22.

RANE MADRAS 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	-57	876	-
Cash Flow from Investing Activities	Rs m	-1,237	-1,060	-
Cash Flow from Financing Activities	Rs m	1,343	351	-73.9%
Net Cash Flow	Rs m	50	167	235.3%

Current Valuations for RANE MADRAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.5, an improvement from the EPS of Rs 6.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 672.5, stands at 36.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 4.9 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	1,070.6	1,447.1
TTM Earnings per share	Rs	6.6	18.5
Diluted earnings per share	Rs	6.6	18.5
Price to Cash Flow	x	6.2	4.9
TTM P/E ratio	x	53.7	36.4
Price / Book Value ratio	x	2.8	2.6
Market Cap	Rs m	6,482	6,221
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RANE MADRAS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY23, from 0.9x 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 2.7x during FY23, from 2.2x 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 improved and stood at 12.4% during FY23, from 4.7% 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 improved and stood at 19.2% during FY23, from 10.0% 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 4.7% during FY23, from 2.5% 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	0.9	0.9
Debtors’ Days	Days	7	7
Interest coverage	x	2.2	2.7
Debt to equity ratio	x	1.0	1.0
Return on assets	%	2.5	4.7
Return on equity	%	4.7	12.4
Return on capital employed	%	10.0	19.2

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

RANE MADRAS Share Price Performance

Over the last one year, RANE MADRAS share price has moved up from Rs 330.2 to Rs 672.5, registering a gain of Rs 342.3 or around 103.6%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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