RAJSHREE SUGAR 2022-23 Annual Report Analysis

Thu, 17 Aug

RAJSHREE SUGAR 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.

RAJSHREE SUGAR Income Statement Analysis

• Operating income during the year rose 64.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 62.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.8% in FY23 as against 6.8% in FY22.
• Depreciation charges increased by 0.4% and finance costs decreased by 36.0% YoY, respectively.
• Other income declined by 39.9% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 0.7% in FY22 to 1.2% in FY23.

RAJSHREE SUGAR Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,677	7,669	64.0%
Other income	Rs m	117	70	-39.9%
Total Revenues	Rs m	4,794	7,740	61.5%
Gross profit	Rs m	320	521	62.9%
Depreciation	Rs m	241	242	0.4%
Interest	Rs m	222	142	-36.0%
Profit before tax	Rs m	-26	207	NA
Tax	Rs m	6	297	5,056.4%
Profit after tax	Rs m	-32	-90	NA
Gross profit margin	%	6.8	6.8
Effective tax rate	%	-22.2	143.3
Net profit margin	%	-0.7	-1.2

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RAJSHREE SUGAR Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -35.4%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY22, a fall of 2.0%.
• Current assets fell 25% and stood at Rs 2 billion, while fixed assets fell 4% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 9 billion during FY22, thereby witnessing a fall of 10%.

RAJSHREE SUGAR Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,611	2,514	-3.7
Current Liabilities	Rs m	2,876	1,859	-35.4
Long-term Debt	Rs m	3,885	3,809	-2.0
Total Liabilities	Rs m	8,892	7,995	-10.1
Current assets	Rs m	2,694	2,023	-24.9
Fixed Assets	Rs m	6,198	5,972	-3.6
Total Assets	Rs m	8,892	7,995	-10.1

RAJSHREE SUGAR Cash Flow Statement Analysis

• RAJSHREE SUGAR's cash flow from operating activities (CFO) during FY23 stood at Rs 155 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 467 million, an improvement of 508.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -629 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -6 million from the Rs 4 million net cash flows seen during FY22.

RAJSHREE SUGAR 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	238	155	-34.6%
Cash Flow from Investing Activities	Rs m	77	467	508.2%
Cash Flow from Financing Activities	Rs m	-310	-629	-
Net Cash Flow	Rs m	4	-6	-

Current Valuations for RAJSHREE SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.7, an decline from the EPS of Rs -1.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 54.2, stands at 16.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 10.9 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	141.1	231.4
TTM Earnings per share	Rs	-1.0	-2.7
Diluted earnings per share	Rs	-1.0	-2.7
Price to Cash Flow	x	5.2	10.9
TTM P/E ratio	x	-34.3	16.3
Price / Book Value ratio	x	0.4	0.7
Market Cap	Rs m	943	1,658
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RAJSHREE SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 0.9x 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 2.5x during FY23, from 0.9x 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 -3.6% during FY23, from -1.2% 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 5.5% during FY23, from 3.0% 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 0.7% during FY23, from 2.1% 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	0.9	1.1
Debtors’ Days	Days	238	173
Interest coverage	x	0.9	2.5
Debt to equity ratio	x	1.5	1.5
Return on assets	%	2.1	0.7
Return on equity	%	-1.2	-3.6
Return on capital employed	%	3.0	5.5

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

RAJSHREE SUGAR Share Price Performance

Over the last one year, RAJSHREE SUGAR share price has moved up from Rs 33.9 to Rs 54.2, registering a gain of Rs 20.3 or around 60.0%.

Overall, the S&P BSE SENSEX is up 8.9% over the year.

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