RAJRATAN GLOBAL WIRE 2022-23 Annual Report Analysis

Wed, 19 Jul

RAJRATAN GLOBAL WIRE 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.

RAJRATAN GLOBAL WIRE Income Statement Analysis

• Operating income during the year rose 0.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 10.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.1% in FY23 as against 20.3% in FY22.
• Depreciation charges increased by 16.6% and finance costs increased by 9.0% YoY, respectively.
• Other income grew by 65.5% YoY.
• Net profit for the year declined by 19.5% YoY.
• Net profit margins during the year declined from 13.9% in FY22 to 11.2% in FY23.

RAJRATAN GLOBAL WIRE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,929	8,954	0.3%
Other income	Rs m	20	33	65.5%
Total Revenues	Rs m	8,949	8,987	0.4%
Gross profit	Rs m	1,816	1,620	-10.8%
Depreciation	Rs m	155	181	16.6%
Interest	Rs m	154	168	9.0%
Profit before tax	Rs m	1,526	1,304	-14.6%
Tax	Rs m	283	302	6.8%
Profit after tax	Rs m	1,243	1,001	-19.5%
Gross profit margin	%	20.3	18.1
Effective tax rate	%	18.5	23.2
Net profit margin	%	13.9	11.2

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RAJRATAN GLOBAL WIRE Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -4.7%.
• Long-term debt stood at Rs 864 million as compared to Rs 538 million during FY22, a growth of 60.5%.
• Current assets fell 11% and stood at Rs 3 billion, while fixed assets rose 47% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 19%.

RAJRATAN GLOBAL WIRE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,410	4,394	28.9
Current Liabilities	Rs m	2,373	2,262	-4.7
Long-term Debt	Rs m	538	864	60.5
Total Liabilities	Rs m	6,419	7,644	19.1
Current assets	Rs m	3,088	2,761	-10.6
Fixed Assets	Rs m	3,331	4,883	46.6
Total Assets	Rs m	6,419	7,644	19.1

RAJRATAN GLOBAL WIRE Cash Flow Statement Analysis

• RAJRATAN GLOBAL WIRE's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 32.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 76.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 99 million, an improvement of 135% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 23 million from the Rs -19 million net cash flows seen during FY22.

RAJRATAN GLOBAL WIRE 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	1,218	1,615	32.6%
Cash Flow from Investing Activities	Rs m	-959	-1,691	-
Cash Flow from Financing Activities	Rs m	-278	99	-
Net Cash Flow	Rs m	-19	23	-

Current Valuations for RAJRATAN GLOBAL WIRE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.7, an decline from the EPS of Rs 24.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 842.0, stands at 42.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.7 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 41.4 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	175.9	176.4
TTM Earnings per share	Rs	24.5	19.7
Diluted earnings per share	Rs	24.5	19.7
Price to Cash Flow	x	18.8	41.4
TTM P/E ratio	x	21.2	42.7
Price / Book Value ratio	x	26.5	11.1
Market Cap	Rs m	90,253	48,919
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for RAJRATAN GLOBAL WIRE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.3x 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 8.7x during FY23, from 10.9x 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 22.8% during FY23, from 36.5% 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 28.0% during FY23, from 42.6% 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 declined and down at 15.3% during FY23, from 21.8% 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	1.3	1.2
Debtors’ Days	Days	740	556
Interest coverage	x	10.9	8.7
Debt to equity ratio	x	0.2	0.2
Return on assets	%	21.8	15.3
Return on equity	%	36.5	22.8
Return on capital employed	%	42.6	28.0

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 865.6 to Rs 842.0, registering a loss of Rs 23.6 or around 2.7%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,305.3 (up 0.3%). Over the last one year it has moved up from 16,489.8 to 21,305.3, a gain of 4,815 points (up 29.2%).

Overall, the S&P BSE SENSEX is up 22.6% over the year.

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