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RAJRATAN GLOBAL WIRE 2021-22 Annual Report Analysis

Tue, 31 May

RAJRATAN GLOBAL WIRE 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.

RAJRATAN GLOBAL WIRE Income Statement Analysis

• Operating income during the year fell 1.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.2% in FY22 as against 16.9% in FY21.
• Depreciation charges decreased by 42.4% and finance costs decreased by 10.8% YoY, respectively.
• Other income declined by 25.2% YoY.
• Net profit for the year grew by 29.4% YoY.
• Net profit margins during the year grew from 9.7% in FY21 to 12.7% in FY22.

RAJRATAN GLOBAL WIRE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	5,465	5,399	-1.2%
Other income	Rs m	16	12	-25.2%
Total Revenues	Rs m	5,482	5,411	-1.3%
Gross profit	Rs m	921	1,088	18.2%
Depreciation	Rs m	141	81	-42.4%
Interest	Rs m	134	119	-10.8%
Profit before tax	Rs m	663	900	35.8%
Tax	Rs m	131	213	61.9%
Profit after tax	Rs m	531	687	29.4%
Gross profit margin	%	16.9	20.2
Effective tax rate	%	19.8	23.6
Net profit margin	%	9.7	12.7

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RAJRATAN GLOBAL WIRE Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 2 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 2.2%.
• Long-term debt down at Rs 417 million as compared to Rs 592 million during FY21, a fall of 29.6%.
• Current assets rose 6% and stood at Rs 2 billion, while fixed assets fell 3% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 5 billion as against Rs 5 billion during FY21, thereby witnessing a growth of 1%.

RAJRATAN GLOBAL WIRE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	2,265	2,454	8.3
Current Liabilities	Rs m	1,547	1,580	2.2
Long-term Debt	Rs m	592	417	-29.6
Total Liabilities	Rs m	4,511	4,548	0.8
Current assets	Rs m	1,948	2,057	5.6
Fixed Assets	Rs m	2,563	2,491	-2.8
Total Assets	Rs m	4,511	4,548	0.8

RAJRATAN GLOBAL WIRE Cash Flow Statement Analysis

• RAJRATAN GLOBAL WIRE's cash flow from operating activities (CFO) during FY22 stood at Rs 940 million, an improvement of 158.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -661 million, an improvement of 172.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -301 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -22 million from the Rs 26 million net cash flows seen during FY21.

RAJRATAN GLOBAL WIRE 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	364	940	158.0%
Cash Flow from Investing Activities	Rs m	-243	-661	-
Cash Flow from Financing Activities	Rs m	-96	-301	-
Net Cash Flow	Rs m	26	-22	-

Current Valuations for RAJRATAN GLOBAL WIRE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.5, an decline from the EPS of Rs 52.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 715.0, stands at 29.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.8 times, while the price to sales ratio stands at 6.7 times.
• The company's price to cash flow (P/CF) ratio stood at 117.4 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	538.5	106.3
TTM Earnings per share	Rs	52.3	13.5
Diluted earnings per share	Rs	10.5	13.5
Price to Cash Flow	x	59.3	117.4
TTM P/E ratio	x	75.0	29.2
Price / Book Value ratio	x	2.3	36.8
Market Cap	Rs m	5,309	90,253
Dividends per share (Unadj.)	Rs	1.6	2.0

Ratio Analysis for RAJRATAN GLOBAL WIRE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY22, from 1.3x 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 8.5x during FY22, from 6.0x 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 28.0% during FY22, from 23.5% 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 35.5% during FY22, from 27.9% 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 17.7% during FY22, from 14.7% 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	1.3	1.3
Debtors’ Days	Days	779	763
Interest coverage	x	6.0	8.5
Debt to equity ratio	x	0.3	0.2
Return on assets	%	14.7	17.7
Return on equity	%	23.5	28.0
Return on capital employed	%	27.9	35.5

To see how RAJRATAN GLOBAL WIRE has performed over the last 5 years, please visit here.

RAJRATAN GLOBAL WIRE Share Price Performance

Over the last one year, RAJRATAN GLOBAL WIRE share price has moved down from Rs 1,012.0 to Rs 715.0, registering a loss of Rs 297.0 or around 29.3%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 17,908.7 (up 0.7%). Over the last one year it has moved down from 18,877.3 to 17,908.7, a loss of 969 points (down 5.1%).

Overall, the S&P BSE SENSEX is up 9.3% over the year.

(To know more, check out historical annual results for RAJRATAN GLOBAL WIRE and quarterly results for RAJRATAN GLOBAL WIRE)

Read: Latest Annual Report Analysis of RAJRATAN GLOBAL WIRE