Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

War Profits
Revealing a Potential 33x
Opportunity in Defence




**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a Free-for-life newsletter from Equitymaster,
which offers the most profitable investing ideas in India.


AD

RAMCO SYSTEMS 2020-21 Annual Report Analysis
Wed, 31 Mar

RAMCO SYSTEMS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

RAMCO SYSTEMS Income Statement Analysis

  • Operating income during the year rose 10.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 68.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.3% in FY21 as against 17.2% in FY20.
  • Depreciation charges increased by 4.0% and finance costs decreased by 23.2% YoY, respectively.
  • Other income grew by 44.9% YoY.
  • Net profit for the year grew by 429.0% YoY.
  • Net profit margins during the year grew from 1.9% in FY20 to 9.0% in FY21.

RAMCO SYSTEMS Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 5,689 6,263 10.1%
Other income Rs m 157 227 44.9%
Total Revenues Rs m 5,846 6,490 11.0%
Gross profit Rs m 978 1,647 68.4%
Depreciation Rs m 665 691 4.0%
Interest Rs m 135 104 -23.2%
Profit before tax Rs m 335 1,079 222.0%
Tax Rs m 228 512 124.7%
Profit after tax Rs m 107 567 429.0%
Gross profit margin % 17.2 26.3
Effective tax rate % 68.0 47.5
Net profit margin % 1.9 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Get Bullish: 3 Next-Generation Defence Stocks

RAMCO SYSTEMS Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -32.2%.
  • Current assets rose 3% and stood at Rs 5 billion, while fixed assets fell 5% and stood at Rs 5 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 9 billion as against Rs 10 billion during FY20, thereby witnessing a fall of 1%.

RAMCO SYSTEMS Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 5,784 6,278 8.5
 
Current Liabilities Rs m 2,804 1,900 -32.2
Long-term Debt Rs m 67 0 -100.0
Total Liabilities Rs m 9,502 9,411 -1.0
 
Current assets Rs m 4,399 4,546 3.3
Fixed Assets Rs m 5,103 4,865 -4.7
Total Assets Rs m 9,502 9,411 -1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



RAMCO SYSTEMS Cash Flow Statement Analysis

  • RAMCO SYSTEMS's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 228.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -661 million, an improvement of 15.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 37 million from the Rs 22 million net cash flows seen during FY20.

RAMCO SYSTEMS Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 505 1,656 228.0%
Cash Flow from Investing Activities Rs m -573 -661 -
Cash Flow from Financing Activities Rs m -20 -1,026 -
Net Cash Flow Rs m 22 37 71.7%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for RAMCO SYSTEMS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.5, an improvement from the EPS of Rs 3.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 527.7, stands at 28.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 2.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 185.9 203.9
TTM Earnings per share Rs 3.5 18.5
Diluted earnings per share Rs 3.5 18.4
Price to Cash Flow x 2.9 10.4
TTM P/E ratio x 20.8 28.7
Price / Book Value ratio x 0.9 2.1
Market Cap Rs m 5,011 13,027
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for RAMCO SYSTEMS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.4x during FY21, from 1.6x during FY20. 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 11.4x during FY21, from 3.5x during FY20. 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 9.0% during FY21, from 1.9% during FY21. 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 18.8% during FY21, from 8.0% during FY20. 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 7.1% during FY21, from 2.5% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.6 2.4
Debtors’ Days Days 122 106
Interest coverage x 3.5 11.4
Debt to equity ratio x 0.0 0.0
Return on assets % 2.5 7.1
Return on equity % 1.9 9.0
Return on capital employed % 8.0 18.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how RAMCO SYSTEMS has performed over the last 5 years, please visit here.

RAMCO SYSTEMS Share Price Performance

Over the last one year, RAMCO SYSTEMS share price has moved up from Rs 72.2 to Rs 527.7, registering a gain of Rs 455.5 or around 630.9%.

Meanwhile, the S&P BSE IT Index is trading at Rs 26,543.2 (down 0.7%). Over the last one year it has moved up from 12,842.7 to 26,543.2, a gain of 13,701 points (up 106.7%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for RAMCO SYSTEMS and quarterly results for RAMCO SYSTEMS)

Annual Report FAQs

What is the current share price of RAMCO SYSTEMS?

RAMCO SYSTEMS currently trades at Rs 266.0 per share. You can check out the latest share price performance of RAMCO SYSTEMS here...

What was the revenue of RAMCO SYSTEMS in FY21? How does it compare to earlier years?

The revenues of RAMCO SYSTEMS stood at Rs 6,490 m in FY21, which was up 11.0% compared to Rs 5,846 m reported in FY20.

RAMCO SYSTEMS' revenue has grown from Rs 4,593 m in FY17 to Rs 6,490 m in FY21.

Over the past 5 years, the revenue of RAMCO SYSTEMS has grown at a CAGR of 9.0%.

What was the net profit of RAMCO SYSTEMS in FY21? How does it compare to earlier years?

The net profit of RAMCO SYSTEMS stood at Rs 567 m in FY21, which was up 429.0% compared to Rs 107 m reported in FY20.

This compares to a net profit of Rs 169 m in FY19 and a net profit of Rs 114 m in FY18.

Over the past 5 years, RAMCO SYSTEMS net profit has grown at a CAGR of 51.6%.

What does the cash flow statement of RAMCO SYSTEMS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of RAMCO SYSTEMS reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 1,656 m as compared to Rs 505 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -661 m as compared to Rs -573 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -1,026 m as compared to Rs -20 m in FY20.

Here's the cash flow statement of RAMCO SYSTEMS for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations36777845051,656
From Investments-345-442-497-573-661
From Financial Activity84361456-20-1,026
Net Cashflow1244-312237

What does the Key Ratio analysis of RAMCO SYSTEMS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of RAMCO SYSTEMS reveals:

  • Operating profit margins witnessed a fall and down at 26.3% in FY21 as against 17.2% in FY20.
  • Net profit margins grew from 1.9% in FY20 to 9.0% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of RAMCO SYSTEMS for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)2.116.016.417.226.3
Net Profit Margin (%)2.42.43.11.99.0
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of RAMCO SYSTEMS

Equitymaster requests your view! Post a comment on "RAMCO SYSTEMS 2020-21 Annual Report Analysis". Click here!