RADICO KHAITAN 2022-23 Annual Report Analysis

Mon, 25 Sep

RADICO KHAITAN 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.

RADICO KHAITAN Income Statement Analysis

• Operating income during the year was NA on a year-on-year (YoY) basis.
• The company's operating profit decreased by 11.1% YoY during the fiscal. Operating profit margins witnessed a growth and down at 5.5% in FY23 as against 5.9% in FY22.
• Depreciation charges increased by 9.3% and finance costs increased by 68.3% YoY, respectively.
• Other income grew by 18.0% YoY.
• Net profit for the year declined by 17.8% YoY.
• Net profit margins during the year grew from 3.7% in FY22 to 3.2% in FY23.

RADICO KHAITAN Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	-67,345	-64,583	NA
Other income	Rs m	129	152	18.0%
Total Revenues	Rs m	-67,216	-64,431	NA
Gross profit	Rs m	3,970	3,529	-11.1%
Depreciation	Rs m	649	709	9.3%
Interest	Rs m	134	225	68.3%
Profit before tax	Rs m	3,316	2,747	-17.2%
Tax	Rs m	831	704	-15.3%
Profit after tax	Rs m	2,485	2,044	-17.8%
Gross profit margin	%	-5.9	-5.5
Effective tax rate	%	25.1	25.6
Net profit margin	%	-3.7	-3.2

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

RADICO KHAITAN Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 14 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 56.2%.
• Long-term debt stood at Rs 3 billion as compared to Rs 50 million during FY22, a growth of 5612.0%.
• Current assets rose 18% and stood at Rs 22 billion, while fixed assets rose 57% and stood at Rs 18 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 40 billion as against Rs 30 billion during FY22, thereby witnessing a growth of 33%.

RADICO KHAITAN Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	20,255	22,038	8.8
Current Liabilities	Rs m	8,965	14,006	56.2
Long-term Debt	Rs m	50	2,869	5,612.0
Total Liabilities	Rs m	30,239	40,307	33.3
Current assets	Rs m	18,544	21,926	18.2
Fixed Assets	Rs m	11,695	18,381	57.2
Total Assets	Rs m	30,239	40,307	33.3

RADICO KHAITAN Cash Flow Statement Analysis

• RADICO KHAITAN's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 7.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -7 billion, an improvement of 552.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 5 billion, an improvement of 464% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 208 million from the Rs -199 million net cash flows seen during FY22.

RADICO KHAITAN 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	2,220	2,386	7.5%
Cash Flow from Investing Activities	Rs m	-1,081	-7,052	-
Cash Flow from Financing Activities	Rs m	-1,338	4,874	-
Net Cash Flow	Rs m	-199	208	-

Current Valuations for RADICO KHAITAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.3, an decline from the EPS of Rs 18.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,159.0, stands at 74.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at -2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 47.6 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	-503.8	-483.2
TTM Earnings per share	Rs	18.6	15.3
Diluted earnings per share	Rs	18.6	15.3
Price to Cash Flow	x	37.8	47.6
TTM P/E ratio	x	47.7	74.0
Price / Book Value ratio	x	5.9	5.9
Market Cap	Rs m	119,946	131,084
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for RADICO KHAITAN

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 2.1x 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 13.2x during FY23, from 25.8x 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 declined and down at 9.3% during FY23, from 12.3% 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 11.9% during FY23, from 17.0% 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 declined and down at 5.6% during FY23, from 8.7% 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	2.1	1.6
Debtors’ Days	Days	-410	-466
Interest coverage	x	25.8	13.2
Debt to equity ratio	x	0.0	0.1
Return on assets	%	8.7	5.6
Return on equity	%	12.3	9.3
Return on capital employed	%	17.0	11.9

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

RADICO KHAITAN Share Price Performance

Over the last one year, RADICO KHAITAN share price has moved up from Rs 1,093.7 to Rs 1,159.0, registering a gain of Rs 65.3 or around 6.0%.

Overall, the S&P BSE SENSEX is up 11.0% over the year.

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