RADHE DEVELOPERS 2021-22 Annual Report Analysis

Tue, 14 Jun

RADHE DEVELOPERS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

RADHE DEVELOPERS Income Statement Analysis

• Operating income during the year rose 4804.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1443.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 75.2% in FY22 as against 274.4% in FY21.
• Depreciation charges decreased by 35.6% and finance costs increased by 134.1% YoY, respectively.
• Other income grew by 0.0% YoY.
• Net profit for the year declined by 966.8% YoY.
• Net profit margins during the year grew from 327.5% in FY21 to 57.9% in FY22.

RADHE DEVELOPERS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	9	436	4,804.8%
Other income	Rs m	0	0	0.0%
Total Revenues	Rs m	9	436	4,807.0%
Gross profit	Rs m	-24	328	-1,443.7%
Depreciation	Rs m	6	4	-35.6%
Interest	Rs m	0	1	134.1%
Profit before tax	Rs m	-30	323	-1,164.8%
Tax	Rs m	-1	71	-5,739.7%
Profit after tax	Rs m	-29	252	-966.8%
Gross profit margin	%	-274.4	75.2
Effective tax rate	%	4.1	22.0
Net profit margin	%	-327.5	57.9

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RADHE DEVELOPERS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 437 million as compared to Rs 288 million in FY21, thereby witnessing an increase of 51.8%.
• Long-term debt stood at Rs 6 million as compared to Rs 1 million during FY21, a growth of 680.5%.
• Current assets fell 1% and stood at Rs 319 million, while fixed assets rose 162% and stood at Rs 666 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 985 million as against Rs 577 million during FY21, thereby witnessing a growth of 71%.

RADHE DEVELOPERS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	292	544	86.5
Current Liabilities	Rs m	288	437	51.8
Long-term Debt	Rs m	1	6	680.5
Total Liabilities	Rs m	577	985	70.6
Current assets	Rs m	324	319	-1.4
Fixed Assets	Rs m	254	666	162.3
Total Assets	Rs m	577	985	70.6

RADHE DEVELOPERS Cash Flow Statement Analysis

• RADHE DEVELOPERS's cash flow from operating activities (CFO) during FY22 stood at Rs -84 million, an improvement of 41,830.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -18 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 99 million, an improvement of 1,626% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -3 million from the Rs 1 million net cash flows seen during FY21.

RADHE DEVELOPERS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	0	-84	-
Cash Flow from Investing Activities	Rs m	8	-18	-
Cash Flow from Financing Activities	Rs m	-6	99	-
Net Cash Flow	Rs m	1	-3	-

Current Valuations for RADHE DEVELOPERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.0, an improvement from the EPS of Rs -1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 197.4, stands at 19.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.1 times, while the price to sales ratio stands at 11.4 times.
• The company's price to cash flow (P/CF) ratio stood at 18.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	0.4	17.3
TTM Earnings per share	Rs	-1.2	10.0
Diluted earnings per share	Rs	-1.2	10.0
Price to Cash Flow	x	-9.0	18.1
TTM P/E ratio	x	-7.3	19.7
Price / Book Value ratio	x	0.8	8.5
Market Cap	Rs m	247	4,631
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RADHE DEVELOPERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY22, from 1.1x during FY21. 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 337.9x during FY22, from -73.1x during FY21. 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 46.3% during FY22, from -10.0% during FY22. 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 58.9% during FY22, from -10.2% during FY21. 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 25.7% during FY22, from -5.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.1	0.7
Debtors’ Days	Days	21	0
Interest coverage	x	-73.1	337.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-5.0	25.7
Return on equity	%	-10.0	46.3
Return on capital employed	%	-10.2	58.9

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

RADHE DEVELOPERS Share Price Performance

Over the last one year, RADHE DEVELOPERS share price has moved up from Rs 10.1 to Rs 197.4, registering a gain of Rs 187.3 or around 1846.7%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,110.4 (up 0.7%). Over the last one year it has moved up from 2,804.1 to 3,110.4, a gain of 306 points (up 10.9%).

Overall, the S&P BSE SENSEX is up 0.9% over the year.

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