RITCO LOGISTICS 2022-23 Annual Report Analysis

Wed, 28 Feb

RITCO LOGISTICS 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.

RITCO LOGISTICS Income Statement Analysis

• Operating income during the year rose 26.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.0% in FY23 as against 6.9% in FY22.
• Depreciation charges decreased by 40.1% and finance costs increased by 23.8% YoY, respectively.
• Other income declined by 14.8% YoY.
• Net profit for the year grew by 49.4% YoY.
• Net profit margins during the year grew from 2.7% in FY22 to 3.2% in FY23.

RITCO LOGISTICS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,933	7,511	26.6%
Other income	Rs m	34	29	-14.8%
Total Revenues	Rs m	5,967	7,540	26.4%
Gross profit	Rs m	408	523	28.1%
Depreciation	Rs m	87	52	-40.1%
Interest	Rs m	133	165	23.8%
Profit before tax	Rs m	222	335	50.8%
Tax	Rs m	59	92	54.7%
Profit after tax	Rs m	163	243	49.4%
Gross profit margin	%	6.9	7.0
Effective tax rate	%	26.7	27.4
Net profit margin	%	2.7	3.2

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RITCO LOGISTICS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 17.0%.
• Long-term debt stood at Rs 169 million as compared to Rs 97 million during FY22, a growth of 74.3%.
• Current assets rose 5% and stood at Rs 3 billion, while fixed assets rose 195% and stood at Rs 714 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 20%.

RITCO LOGISTICS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,239	1,486	19.9
Current Liabilities	Rs m	1,681	1,966	17.0
Long-term Debt	Rs m	97	169	74.3
Total Liabilities	Rs m	3,028	3,645	20.4
Current assets	Rs m	2,786	2,931	5.2
Fixed Assets	Rs m	242	714	194.9
Total Assets	Rs m	3,028	3,645	20.4

RITCO LOGISTICS Cash Flow Statement Analysis

• RITCO LOGISTICS's cash flow from operating activities (CFO) during FY23 stood at Rs 102 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -186 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 167 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 84 million from the Rs -5 million net cash flows seen during FY22.

RITCO LOGISTICS 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	-291	102	-
Cash Flow from Investing Activities	Rs m	63	-186	-
Cash Flow from Financing Activities	Rs m	222	167	-24.7%
Net Cash Flow	Rs m	-5	84	-

Current Valuations for RITCO LOGISTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.9, an improvement from the EPS of Rs 6.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 150.3, stands at 15.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 13.3 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	242.4	306.8
TTM Earnings per share	Rs	6.6	9.9
Diluted earnings per share	Rs	6.7	9.9
Price to Cash Flow	x	6.9	13.3
TTM P/E ratio	x	10.5	15.1
Price / Book Value ratio	x	0.9	2.6
Market Cap	Rs m	1,105	3,930
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RITCO LOGISTICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 1.7x 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 improved and stood at 3.0x during FY23, from 2.7x 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 improved and stood at 16.4% during FY23, from 13.1% 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 30.2% during FY23, from 26.6% 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 11.2% during FY23, from 9.8% 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	1.7	1.5
Debtors’ Days	Days	1,232	1,178
Interest coverage	x	2.7	3.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.8	11.2
Return on equity	%	13.1	16.4
Return on capital employed	%	26.6	30.2

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

RITCO LOGISTICS Share Price Performance

Over the last one year, RITCO LOGISTICS share price has moved up from Rs 70.0 to Rs 150.3, registering a gain of Rs 80.3 or around 114.7%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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