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RAMCO SYSTEMS 2021-22 Annual Report Analysis
Wed, 20 Jul

RAMCO SYSTEMS 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.

RAMCO SYSTEMS Income Statement Analysis

  • Operating income during the year fell 15.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 100.5% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 0.1% in FY22 as against 26.3% in FY21.
  • Depreciation charges increased by 8.9% and finance costs decreased by 36.4% YoY, respectively.
  • Other income declined by 59.1% YoY.
  • Net profit for the year declined by 228.9% YoY.
  • Net profit margins during the year declined from 9.0% in FY21 to 13.8% in FY22.

RAMCO SYSTEMS Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 6,263 5,311 -15.2%
Other income Rs m 227 93 -59.1%
Total Revenues Rs m 6,490 5,404 -16.7%
Gross profit Rs m 1,647 -8 -100.5%
Depreciation Rs m 691 753 8.9%
Interest Rs m 104 66 -36.4%
Profit before tax Rs m 1,079 -734 -168.0%
Tax Rs m 512 -4 -100.7%
Profit after tax Rs m 567 -730 -228.9%
Gross profit margin % 26.3 -0.1
Effective tax rate % 47.5 0.5
Net profit margin % 9.0 -13.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

RAMCO SYSTEMS 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 12.5%.
  • Current assets fell 10% and stood at Rs 4 billion, while fixed assets fell 5% and stood at Rs 5 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 9 billion as against Rs 9 billion during FY21, thereby witnessing a fall of 7%.

RAMCO SYSTEMS Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 6,278 5,608 -10.7
 
Current Liabilities Rs m 1,900 2,138 12.5
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 9,411 8,715 -7.4
 
Current assets Rs m 4,546 4,084 -10.2
Fixed Assets Rs m 4,865 4,630 -4.8
Total Assets Rs m 9,411 8,715 -7.4
* 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 FY22 stood at Rs 918 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -851 million, an improvement of 28.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -95 million, an improvement of 91% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -25 million from the Rs 37 million net cash flows seen during FY21.

RAMCO SYSTEMS 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 1,656 918 -44.5%
Cash Flow from Investing Activities Rs m -661 -851 -
Cash Flow from Financing Activities Rs m -1,026 -95 -
Net Cash Flow Rs m 37 -25 -
* 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 -23.7, an decline from the EPS of Rs 18.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 327.0, stands at -13.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 639.4 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 203.9 172.4
TTM Earnings per share Rs 18.5 -23.7
Diluted earnings per share Rs 18.4 -23.7
Price to Cash Flow x 12.9 639.4
TTM P/E ratio x 28.7 -13.8
Price / Book Value ratio x 2.1 2.6
Market Cap Rs m 13,027 14,604
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 deteriorated and stood at 1.9x during FY22, from 2.4x 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 deteriorated and stood at -10.1x during FY22, from 11.4x 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 declined and down at -13.0% during FY22, from 9.0% 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 declined and down at -11.9% during FY22, from 18.8% 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 declined and down at -7.6% during FY22, from 7.1% 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 2.4 1.9
Debtors’ Days Days 106 115
Interest coverage x 11.4 -10.1
Debt to equity ratio x 0.0 0.0
Return on assets % 7.1 -7.6
Return on equity % 9.0 -13.0
Return on capital employed % 18.8 -11.9
* 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 down from Rs 636.6 to Rs 327.0, registering a loss of Rs 309.6 or around 48.6%.

Meanwhile, the S&P BSE IT Index is trading at Rs 28,726.1 (up 2.6%). Over the last one year it has moved down from 29,914.2 to 28,726.1, a loss of 1,188 points (down 4.0%).

Overall, the S&P BSE SENSEX is up 5.7% 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 264.8 per share. You can check out the latest share price performance of RAMCO SYSTEMS here...

What was the revenue of RAMCO SYSTEMS in FY22? How does it compare to earlier years?

The revenues of RAMCO SYSTEMS stood at Rs 5,404 m in FY22, which was down -16.7% compared to Rs 6,490 m reported in FY21.

RAMCO SYSTEMS' revenue has grown from Rs 4,808 m in FY18 to Rs 5,404 m in FY22.

Over the past 5 years, the revenue of RAMCO SYSTEMS has grown at a CAGR of 3.0%.

What was the net profit of RAMCO SYSTEMS in FY22? How does it compare to earlier years?

The net loss of RAMCO SYSTEMS stood at Rs -730 m in FY22, which was down -228.9% compared to Rs 567 m reported in FY21.

This compares to a net profit of Rs 107 m in FY20 and a net profit of Rs 169 m in FY19.

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

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 decreased in FY22 and stood at Rs 918 m as compared to Rs 1,656 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -851 m as compared to Rs -661 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -95 m as compared to Rs -1,026 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations77845051,656918
From Investments-442-497-573-661-851
From Financial Activity361456-20-1,026-95
Net Cashflow44-312237-25

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 growth and stood at 0.1% in FY22 as against 26.3% in FY21.
  • Net profit margins declined from 9.0% in FY21 to 13.8% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)16.016.417.226.3-0.1
Net Profit Margin (%)2.43.11.99.0-13.8
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of RAMCO SYSTEMS

 

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