REDINGTON 2022-23 Annual Report Analysis

Mon, 10 Jul

REDINGTON 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.

REDINGTON Income Statement Analysis

• Operating income during the year rose 26.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.8% in FY23 as against 2.9% in FY22.
• Depreciation charges increased by 10.0% and finance costs increased by 118.3% YoY, respectively.
• Other income grew by 62.1% YoY.
• Net profit for the year grew by 9.5% YoY.
• Net profit margins during the year declined from 2.1% in FY22 to 1.8% in FY23.

REDINGTON Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	626,440	793,768	26.7%
Other income	Rs m	876	1,419	62.1%
Total Revenues	Rs m	627,316	795,187	26.8%
Gross profit	Rs m	18,389	22,024	19.8%
Depreciation	Rs m	1,413	1,554	10.0%
Interest	Rs m	1,628	3,555	118.3%
Profit before tax	Rs m	16,224	18,335	13.0%
Tax	Rs m	3,075	3,941	28.2%
Profit after tax	Rs m	13,149	14,394	9.5%
Gross profit margin	%	2.9	2.8
Effective tax rate	%	19.0	21.5
Net profit margin	%	2.1	1.8

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REDINGTON Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 160 billion as compared to Rs 122 billion in FY22, thereby witnessing an increase of 31.3%.
• Long-term debt down at Rs 505 million as compared to Rs 901 million during FY22, a fall of 44.0%.
• Current assets rose 28% and stood at Rs 225 billion, while fixed assets rose 12% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 236 billion as against Rs 187 billion during FY22, thereby witnessing a growth of 27%.

REDINGTON Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	57,801	69,232	19.8
Current Liabilities	Rs m	121,828	159,969	31.3
Long-term Debt	Rs m	901	505	-44.0
Total Liabilities	Rs m	186,688	236,413	26.6
Current assets	Rs m	176,401	225,006	27.6
Fixed Assets	Rs m	10,217	11,407	11.6
Total Assets	Rs m	186,688	236,413	26.6

REDINGTON Cash Flow Statement Analysis

• REDINGTON's cash flow from operating activities (CFO) during FY23 stood at Rs -32 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 15 billion, an improvement of 421% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -15 billion from the Rs 3 billion net cash flows seen during FY22.

REDINGTON 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	9,892	-32,335	-
Cash Flow from Investing Activities	Rs m	-565	1,756	-
Cash Flow from Financing Activities	Rs m	-4,761	15,286	-
Net Cash Flow	Rs m	3,461	-14,622	-

Current Valuations for REDINGTON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.4, an improvement from the EPS of Rs 16.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 188.7, stands at 10.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 7.6 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	801.6	1,015.6
TTM Earnings per share	Rs	16.8	18.4
Diluted earnings per share	Rs	16.8	18.4
Price to Cash Flow	x	7.8	7.6
TTM P/E ratio	x	8.6	10.2
Price / Book Value ratio	x	3.3	1.8
Market Cap	Rs m	193,196	121,826
Dividends per share (Unadj.)	Rs	6.6	7.2

Ratio Analysis for REDINGTON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.4x 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 6.2x during FY23, from 11.0x 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 20.8% during FY23, from 22.7% 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 31.4% during FY23, from 30.4% 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 7.6% during FY23, from 7.9% 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	1.4	1.4
Debtors’ Days	Days	5	6
Interest coverage	x	11.0	6.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.9	7.6
Return on equity	%	22.7	20.8
Return on capital employed	%	30.4	31.4

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

REDINGTON Share Price Performance

Over the last one year, REDINGTON share price has moved up from Rs 132.3 to Rs 188.7, registering a gain of Rs 56.5 or around 42.7%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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