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RMC SWITCHGEARS 2022-23 Annual Report Analysis

Mon, 26 Feb

RMC SWITCHGEARS 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.

RMC SWITCHGEARS Income Statement Analysis

• Operating income during the year rose 201.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 388.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.8% in FY23 as against 12.9% in FY22.
• Depreciation charges increased by 2.4% and finance costs increased by 126.6% YoY, respectively.
• Other income declined by 30.8% YoY.
• Net profit for the year grew by 1934.8% YoY.
• Net profit margins during the year grew from 1.4% in FY22 to 9.4% in FY23.

RMC SWITCHGEARS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	416	1,253	201.4%
Other income	Rs m	7	5	-30.8%
Total Revenues	Rs m	422	1,257	197.7%
Gross profit	Rs m	54	261	388.1%
Depreciation	Rs m	26	27	2.4%
Interest	Rs m	31	70	126.6%
Profit before tax	Rs m	3	170	4,828.2%
Tax	Rs m	-2	52	NA
Profit after tax	Rs m	6	117	1,934.8%
Gross profit margin	%	12.9	20.8
Effective tax rate	%	-67.7	30.7
Net profit margin	%	1.4	9.4

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RMC SWITCHGEARS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 501 million as compared to Rs 326 million in FY22, thereby witnessing an increase of 53.5%.
• Long-term debt down at Rs 186 million as compared to Rs 202 million during FY22, a fall of 7.8%.
• Current assets rose 66% and stood at Rs 829 million, while fixed assets rose 3% and stood at Rs 334 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 829 million during FY22, thereby witnessing a growth of 41%.

RMC SWITCHGEARS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	285	457	60.3
Current Liabilities	Rs m	326	501	53.5
Long-term Debt	Rs m	202	186	-7.8
Total Liabilities	Rs m	829	1,166	40.6
Current assets	Rs m	500	829	65.9
Fixed Assets	Rs m	326	334	2.5
Total Assets	Rs m	829	1,166	40.6

RMC SWITCHGEARS Cash Flow Statement Analysis

• RMC SWITCHGEARS's cash flow from operating activities (CFO) during FY23 stood at Rs 41 million, an improvement of 51.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -31 million, an improvement of 33.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 35 million, an improvement of 576% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 45 million from the Rs -4 million net cash flows seen during FY22.

RMC SWITCHGEARS 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	27	41	51.2%
Cash Flow from Investing Activities	Rs m	-23	-31	-
Cash Flow from Financing Activities	Rs m	-7	35	-
Net Cash Flow	Rs m	-4	45	-

Current Valuations for RMC SWITCHGEARS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.1, an improvement from the EPS of Rs 0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 274.8, stands at 24.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 8.3 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	68.2	182.3
TTM Earnings per share	Rs	0.9	17.1
Diluted earnings per share	Rs	0.6	11.4
Price to Cash Flow	x	12.5	8.3
TTM P/E ratio	x	69.0	24.1
Price / Book Value ratio	x	0.7	2.6
Market Cap	Rs m	199	1,201
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RMC SWITCHGEARS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY23, from 1.5x 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 3.4x during FY23, from 1.1x 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 25.7% during FY23, from 2.0% 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 37.2% during FY23, from 7.0% 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 improved and stood at 16.0% during FY23, from 4.4% 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	1.5	1.7
Debtors’ Days	Days	2,123	1,663
Interest coverage	x	1.1	3.4
Debt to equity ratio	x	0.7	0.4
Return on assets	%	4.4	16.0
Return on equity	%	2.0	25.7
Return on capital employed	%	7.0	37.2

To see how RMC SWITCHGEARS has performed over the last 5 years, please visit here.

RMC SWITCHGEARS Share Price Performance

Over the last one year, RMC SWITCHGEARS share price has moved up from Rs 38.7 to Rs 274.8, registering a gain of Rs 236.1 or around 610.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

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

(To know more, check out historical annual results for RMC SWITCHGEARS and quarterly results for RMC SWITCHGEARS)