RAM RAT.WIRE 2022-23 Annual Report Analysis

Tue, 22 Aug

RAM RAT.WIRE 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.

RAM RAT.WIRE Income Statement Analysis

• Operating income during the year rose 15.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.1% in FY23 as against 4.6% in FY22.
• Depreciation charges increased by 4.4% and finance costs increased by 21.5% YoY, respectively.
• Other income declined by 39.2% YoY.
• Net profit for the year declined by 13.2% YoY.
• Net profit margins during the year declined from 2.4% in FY22 to 1.8% in FY23.

RAM RAT.WIRE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	22,886	26,496	15.8%
Other income	Rs m	117	71	-39.2%
Total Revenues	Rs m	23,003	26,567	15.5%
Gross profit	Rs m	1,061	1,092	3.0%
Depreciation	Rs m	177	185	4.4%
Interest	Rs m	276	335	21.5%
Profit before tax	Rs m	726	644	-11.3%
Tax	Rs m	184	174	-5.4%
Profit after tax	Rs m	542	470	-13.2%
Gross profit margin	%	4.6	4.1
Effective tax rate	%	25.3	27.0
Net profit margin	%	2.4	1.8

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RAM RAT.WIRE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 27.7%.
• Long-term debt down at Rs 964 million as compared to Rs 1 billion during FY22, a fall of 14.4%.
• Current assets rose 21% and stood at Rs 6 billion, while fixed assets rose 5% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 7 billion during FY22, thereby witnessing a growth of 16%.

RAM RAT.WIRE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,714	3,116	14.8
Current Liabilities	Rs m	3,002	3,835	27.7
Long-term Debt	Rs m	1,127	964	-14.4
Total Liabilities	Rs m	7,154	8,287	15.8
Current assets	Rs m	4,864	5,873	20.7
Fixed Assets	Rs m	2,290	2,414	5.4
Total Assets	Rs m	7,154	8,287	15.8

RAM RAT.WIRE Cash Flow Statement Analysis

• RAM RAT.WIRE's cash flow from operating activities (CFO) during FY23 stood at Rs 647 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -204 million, an improvement of 7.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -454 million, an improvement of 62% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -11 million from the Rs 108 million net cash flows seen during FY22.

RAM RAT.WIRE 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	1,508	647	-57.1%
Cash Flow from Investing Activities	Rs m	-191	-204	-
Cash Flow from Financing Activities	Rs m	-1,210	-454	-
Net Cash Flow	Rs m	108	-11	-

Current Valuations for RAM RAT.WIRE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.7, an decline from the EPS of Rs 24.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 282.7, stands at 27.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 11.2 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	1,040.3	602.2
TTM Earnings per share	Rs	24.6	10.7
Diluted earnings per share	Rs	12.3	10.7
Price to Cash Flow	x	6.1	11.2
TTM P/E ratio	x	8.2	27.4
Price / Book Value ratio	x	1.3	2.4
Market Cap	Rs m	3,438	7,328
Dividends per share (Unadj.)	Rs	5.0	2.5

Ratio Analysis for RAM RAT.WIRE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 1.6x 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 2.9x during FY23, from 3.6x 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 15.1% during FY23, from 20.0% 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 24.0% during FY23, from 26.1% 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 9.7% during FY23, from 11.4% 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	1.6	1.5
Debtors’ Days	Days	501	470
Interest coverage	x	3.6	2.9
Debt to equity ratio	x	0.4	0.3
Return on assets	%	11.4	9.7
Return on equity	%	20.0	15.1
Return on capital employed	%	26.1	24.0

To see how RAM RAT.WIRE has performed over the last 5 years, please visit here.

RAM RAT.WIRE Share Price Performance

Over the last one year, RAM RAT.WIRE share price has moved up from Rs 140.3 to Rs 282.7, registering a gain of Rs 142.4 or around 101.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,368.5 (up 0.5%). Over the last one year it has moved up from 18,373.9 to 21,368.5, a gain of 2,995 points (up 16.3%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

(To know more, check out historical annual results for RAM RAT.WIRE and quarterly results for RAM RAT.WIRE)