RICO AUTO 2022-23 Annual Report Analysis

Fri, 31 Mar

RICO AUTO 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.

RICO AUTO Income Statement Analysis

• Operating income during the year rose 23.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 46.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.6% in FY23 as against 8.1% in FY22.
• Depreciation charges increased by 22.5% and finance costs increased by 23.5% YoY, respectively.
• Other income declined by 4.6% YoY.
• Net profit for the year grew by 115.1% YoY.
• Net profit margins during the year grew from 1.3% in FY22 to 2.2% in FY23.

RICO AUTO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	18,612	23,024	23.7%
Other income	Rs m	201	192	-4.6%
Total Revenues	Rs m	18,813	23,216	23.4%
Gross profit	Rs m	1,510	2,203	46.0%
Depreciation	Rs m	913	1,118	22.5%
Interest	Rs m	438	541	23.5%
Profit before tax	Rs m	360	736	104.6%
Tax	Rs m	123	226	84.1%
Profit after tax	Rs m	237	510	115.1%
Gross profit margin	%	8.1	9.6
Effective tax rate	%	34.1	30.7
Net profit margin	%	1.3	2.2

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RICO AUTO Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 8 billion as compared to Rs 9 billion in FY22, thereby witnessing an decrease of -13.4%.
• Long-term debt stood at Rs 4 billion as compared to Rs 2 billion during FY22, a growth of 99.9%.
• Current assets rose 1% and stood at Rs 8 billion, while fixed assets rose 10% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 19 billion as against Rs 18 billion during FY22, thereby witnessing a growth of 6%.

RICO AUTO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,418	6,893	7.4
Current Liabilities	Rs m	9,493	8,220	-13.4
Long-term Debt	Rs m	1,884	3,767	99.9
Total Liabilities	Rs m	18,219	19,357	6.2
Current assets	Rs m	7,586	7,663	1.0
Fixed Assets	Rs m	10,633	11,694	10.0
Total Assets	Rs m	18,219	19,357	6.2

RICO AUTO Cash Flow Statement Analysis

• RICO AUTO's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 19.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 773 million, an improvement of 383% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 94 million from the Rs -48 million net cash flows seen during FY22.

RICO AUTO 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	2,164	1,599	-26.1%
Cash Flow from Investing Activities	Rs m	-1,949	-2,334	-
Cash Flow from Financing Activities	Rs m	-273	773	-
Net Cash Flow	Rs m	-48	94	-

Current Valuations for RICO AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.8, an improvement from the EPS of Rs 1.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 67.4, stands at 16.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 5.3 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	137.6	170.2
TTM Earnings per share	Rs	1.8	3.8
Diluted earnings per share	Rs	1.8	3.8
Price to Cash Flow	x	3.7	5.3
TTM P/E ratio	x	18.7	16.9
Price / Book Value ratio	x	1.0	1.2
Market Cap	Rs m	6,325	8,584
Dividends per share (Unadj.)	Rs	0.4	0.8

Ratio Analysis for RICO AUTO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY23, from 0.8x 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 2.4x during FY23, from 1.8x 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 7.4% during FY23, from 3.7% 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 12.0% during FY23, from 9.6% 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 5.4% during FY23, from 3.7% 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	0.8	0.9
Debtors’ Days	Days	7	6
Interest coverage	x	1.8	2.4
Debt to equity ratio	x	0.3	0.5
Return on assets	%	3.7	5.4
Return on equity	%	3.7	7.4
Return on capital employed	%	9.6	12.0

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

RICO AUTO Share Price Performance

Over the last one year, RICO AUTO share price has moved up from Rs 31.6 to Rs 67.4, registering a gain of Rs 35.8 or around 113.4%.

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

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