RCF 2018-19 Annual Report Analysis

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RCF 2018-19 Annual Report Analysis
Fri, 18 Oct

RCF has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

RCF Income Statement Analysis

  • Operating income during the year rose 22.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 64.4% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 4.9% in FY19 as against 3.7% in FY18.
  • Depreciation charges increased by 13.6% and finance costs increased by 149.0% YoY, respectively.
  • Other income grew by 30.1% YoY.
  • Net profit for the year grew by 70.1% YoY.
  • Net profit margins during the year grew from 1.1% in FY18 to 1.5% in FY19.

RCF Income Statement 2018-19

No. of Mths Year Ending12 Mar-18*12 Mar-19*% Change
Net SalesRs m72,82088,85522.0%
Other incomeRs m61279730.1%
Total RevenuesRs m73,43289,65122.1%
Gross profitRs m2,6684,38664.4%
DepreciationRs m1,3701,55713.6%
InterestRs m6261,559149.0%
Profit before taxRs m1,2842,06761.0%
TaxRs m49496194.4%
Profit after taxRs m7881,34170.1%
Gross profit margin%3.74.9
Effective tax rate%38.546.5
Net profit margin%1.11.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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RCF Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 47 billion as compared to Rs 23 billion in FY18, thereby witnessing an increase of 102.2%.
  • Long-term debt stood at Rs 4 billion as compared to Rs 3 billion during FY18, a growth of 32.8%.
  • Current assets rose 63% and stood at Rs 63 billion, while fixed assets rose 8% and stood at Rs 22 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 89 billion as against Rs 63 billion during FY18, thereby witnessing a growth of 41%.

RCF Balance Sheet as on March 2019

No. of Mths Year Ending12 Mar-18*12 Mar-19*% Change
NetworthRs m29,29730,2973.4
 
Current LiabilitiesRs m23,27447,051102.2
Long-term DebtRs m3,2014,25132.8
Total LiabilitiesRs m63,23689,15441.0
 
Current assetsRs m38,69263,10963.1
Fixed AssetsRs m 20,62422,2577.9
Total AssetsRs m63,23689,15441.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RCF Cash Flow Statement Analysis

  • RCF's cash flow from operating activities (CFO) during FY19 stood at Rs -16 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 19 billion, an improvement of 431% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -17 million from the Rs -51 million net cash flows seen during FY18.

RCF Cash Flow Statement 2018-19

ParticularsNo. of months1212% Change
Year EndingMar-18Mar-19
Cash Flow from Operating ActivitiesRs m10,781-16,364-
Cash Flow from Investing ActivitiesRs m-4,957-3,103-
Cash Flow from Financing ActivitiesRs m-5,87519,451-
Net Cash FlowRs m-51-17-
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RCF

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.4, an improvement from the EPS of Rs 1.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 49.7, stands at 22.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-18*12 Mar-19*
Sales per share (Unadj.)Rs132.0161.1
TTM Earnings per shareRs1.42.4
Diluted earnings per shareRs1.42.4
Price to Cash Flow x12.79.5
TTM P/E ratiox22.122.1
Price / Book Value ratiox1.71.2
Market CapRs m27,41927,419
Dividends per share (Unadj.)Rs0.60.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for RCF

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY19, from 1.7x during FY18. 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 2.3x during FY19, from 3.1x during FY18. 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 4.4% during FY19, from 2.7% during FY19. 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 11.2% during FY19, from 5.9% during FY18. 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 3.3% during FY19, from 2.2% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-18*12 Mar-19*
Current ratiox1.71.3
Debtors’ DaysDays143187
Interest coveragex3.12.3
Debt to equity ratiox0.10.1
Return on assets%2.23.3
Return on equity%2.74.4
Return on capital employed%5.911.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

RCF Share Price Performance

Over the last one year, RCF share price has moved down from Rs 61.1 to Rs 49.7, registering a loss of Rs 11.4 or around 18.6%.

Overall, the S&P BSE SENSEX is up 12.8% over the year.

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

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RCF Announces Quarterly Results (4QFY20); Net Profit Up 193.5% (Quarterly Result Update)

Jun 1, 2020 | Updated on Jun 1, 2020

For the quarter ended March 2020, RCF has posted a net profit of Rs 1 bn (up 193.5% YoY). Sales on the other hand came in at Rs 26 bn (up 15.0% YoY). Read on for a complete analysis of RCF's quarterly results.

RCF Announces Quarterly Results (3QFY20); Net Profit Up 57.5% (Quarterly Result Update)

Feb 17, 2020 | Updated on Feb 17, 2020

For the quarter ended December 2019, RCF has posted a net profit of Rs 786 m (up 57.5% YoY). Sales on the other hand came in at Rs 22 bn (down 5.4% YoY). Read on for a complete analysis of RCF's quarterly results.

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