REL.INDUS.INFRAS 2022-23 Annual Report Analysis

Tue, 30 May

REL.INDUS.INFRAS 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.

REL.INDUS.INFRAS Income Statement Analysis

• Operating income during the year rose 4.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 152.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.7% in FY23 as against 7.7% in FY22.
• Depreciation charges decreased by 42.0% increased by 0.0% YoY, respectively.
• Other income declined by 18.5% YoY.
• Net profit for the year grew by 110.4% YoY.
• Net profit margins during the year grew from 12.8% in FY22 to 25.8% in FY23.

REL.INDUS.INFRAS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	652	680	4.4%
Other income	Rs m	158	129	-18.5%
Total Revenues	Rs m	810	809	-0.1%
Gross profit	Rs m	50	127	152.6%
Depreciation	Rs m	101	59	-42.0%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	107	197	84.4%
Tax	Rs m	24	22	-7.6%
Profit after tax	Rs m	84	176	110.4%
Gross profit margin	%	7.7	18.7
Effective tax rate	%	22.0	11.0
Net profit margin	%	12.8	25.8

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REL.INDUS.INFRAS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 330 million as compared to Rs 187 million in FY22, thereby witnessing an increase of 77.1%.
• Current assets rose 45% and stood at Rs 2 billion, while fixed assets fell 18% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 1%.

REL.INDUS.INFRAS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,349	4,312	-0.9
Current Liabilities	Rs m	187	330	77.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,704	4,765	1.3
Current assets	Rs m	1,457	2,118	45.4
Fixed Assets	Rs m	3,247	2,647	-18.5
Total Assets	Rs m	4,704	4,765	1.3

REL.INDUS.INFRAS Cash Flow Statement Analysis

• REL.INDUS.INFRAS's cash flow from operating activities (CFO) during FY23 stood at Rs 228 million, an improvement of 293.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -186 million, an improvement of 2,158.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -46 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -4 million from the Rs 4 million net cash flows seen during FY22.

REL.INDUS.INFRAS 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	58	228	293.0%
Cash Flow from Investing Activities	Rs m	-8	-186	-
Cash Flow from Financing Activities	Rs m	-46	-46	-
Net Cash Flow	Rs m	4	-4	-

Current Valuations for REL.INDUS.INFRAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.6, an improvement from the EPS of Rs 5.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 917.0, stands at 88.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 20.3 times.
• The company's price to cash flow (P/CF) ratio stood at 63.6 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	43.2	45.1
TTM Earnings per share	Rs	5.5	11.6
Diluted earnings per share	Rs	5.5	11.6
Price to Cash Flow	x	63.5	63.6
TTM P/E ratio	x	155.5	88.9
Price / Book Value ratio	x	2.4	3.5
Market Cap	Rs m	10,383	14,907
Dividends per share (Unadj.)	Rs	3.0	3.5

Ratio Analysis for REL.INDUS.INFRAS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.4x during FY23, from 7.8x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 4.1% during FY23, from 1.9% 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 4.6% during FY23, from 2.5% 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 3.7% during FY23, from 1.8% 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	7.8	6.4
Debtors’ Days	Days	910	195
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.8	3.7
Return on equity	%	1.9	4.1
Return on capital employed	%	2.5	4.6

To see how REL.INDUS.INFRAS has performed over the last 5 years, please visit here.

REL.INDUS.INFRAS Share Price Performance

Over the last one year, REL.INDUS.INFRAS share price has moved down from Rs 931.4 to Rs 917.0, registering a loss of Rs 14.4 or around 1.5%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,807.8 (down 0.1%). Over the last one year it has moved up from 3,210.6 to 3,807.8, a gain of 597 points (up 18.6%).

Overall, the S&P BSE SENSEX is up 16.0% over the year.

(To know more, check out historical annual results for REL.INDUS.INFRAS and quarterly results for REL.INDUS.INFRAS)