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RANE HOLDINGS 2021-22 Annual Report Analysis
Tue, 14 Jun

RANE HOLDINGS 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.

RANE HOLDINGS Income Statement Analysis

  • Operating income during the year rose 31.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 53.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.7% in FY22 as against 6.6% in FY21.
  • Depreciation charges increased by 7.0% and finance costs decreased by 14.0% YoY, respectively.
  • Other income grew by 72.0% YoY.
  • Net profit for the year declined by 228.5% YoY.
  • Net profit margins during the year grew from 1.6% in FY21 to 1.6% in FY22.

RANE HOLDINGS Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 20,354 26,773 31.5%
Other income Rs m 217 374 72.0%
Total Revenues Rs m 20,571 27,147 32.0%
Gross profit Rs m 1,344 2,066 53.8%
Depreciation Rs m 1,204 1,288 7.0%
Interest Rs m 397 342 -14.0%
Profit before tax Rs m -40 809 -2,123.5%
Tax Rs m 290 385 32.8%
Profit after tax Rs m -330 424 -228.5%
Gross profit margin % 6.6 7.7
Effective tax rate % -725.3 47.6
Net profit margin % -1.6 1.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

RANE HOLDINGS Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 11 billion as compared to Rs 9 billion in FY21, thereby witnessing an increase of 16.8%.
  • Long-term debt stood at Rs 3 billion as compared to Rs 3 billion during FY21, a growth of 4.2%.
  • Current assets rose 20% and stood at Rs 11 billion, while fixed assets rose 0% and stood at Rs 13 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 24 billion as against Rs 22 billion during FY21, thereby witnessing a growth of 8%.

RANE HOLDINGS Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 7,645 7,762 1.5
 
Current Liabilities Rs m 9,132 10,663 16.8
Long-term Debt Rs m 3,112 3,243 4.2
Total Liabilities Rs m 22,444 24,337 8.4
 
Current assets Rs m 9,131 10,966 20.1
Fixed Assets Rs m 13,313 13,371 0.4
Total Assets Rs m 22,444 24,337 8.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



RANE HOLDINGS Cash Flow Statement Analysis

  • RANE HOLDINGS's cash flow from operating activities (CFO) during FY22 stood at Rs 153 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 18.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 650 million, an improvement of 283% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -341 million from the Rs 4 million net cash flows seen during FY21.

RANE HOLDINGS 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 1,322 153 -88.4%
Cash Flow from Investing Activities Rs m -963 -1,145 -
Cash Flow from Financing Activities Rs m -356 650 -
Net Cash Flow Rs m 4 -341 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for RANE HOLDINGS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.7, an improvement from the EPS of Rs -23.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 596.0, stands at 20.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.5 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 1,425.3 1,874.9
TTM Earnings per share Rs -23.1 29.7
Diluted earnings per share Rs -23.1 29.7
Price to Cash Flow x 9.7 5.5
TTM P/E ratio x -25.5 20.1
Price / Book Value ratio x 1.0 1.2
Market Cap Rs m 7,301 9,475
Dividends per share (Unadj.) Rs 0.0 12.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for RANE HOLDINGS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY22, from 1.0x 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 improved and stood at 3.4x during FY22, from 0.9x 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 improved and stood at 5.5% during FY22, from -4.3% 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 improved and stood at 10.5% during FY22, from 3.3% 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 improved and stood at 3.1% during FY22, from 0.3% 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 1.0 1.0
Debtors’ Days Days 872 785
Interest coverage x 0.9 3.4
Debt to equity ratio x 0.4 0.4
Return on assets % 0.3 3.1
Return on equity % -4.3 5.5
Return on capital employed % 3.3 10.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how RANE HOLDINGS has performed over the last 5 years, please visit here.

RANE HOLDINGS Share Price Performance

Over the last one year, RANE HOLDINGS share price has moved down from Rs 667.4 to Rs 596.0, registering a loss of Rs 71.4 or around 10.7%.

Overall, the S&P BSE SENSEX is up 0.8% over the year.

(To know more, check out historical annual results for RANE HOLDINGS and quarterly results for RANE HOLDINGS)

Annual Report FAQs

What is the current share price of RANE HOLDINGS?

RANE HOLDINGS currently trades at Rs 1,085.7 per share. You can check out the latest share price performance of RANE HOLDINGS here...

What was the revenue of RANE HOLDINGS in FY22? How does it compare to earlier years?

The revenues of RANE HOLDINGS stood at Rs 27,147 m in FY22, which was up 32.0% compared to Rs 20,571 m reported in FY21.

RANE HOLDINGS' revenue has grown from Rs 23,591 m in FY18 to Rs 27,147 m in FY22.

Over the past 5 years, the revenue of RANE HOLDINGS has grown at a CAGR of 3.6%.

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

The net profit of RANE HOLDINGS stood at Rs 424 m in FY22, which was down -228.5% compared to Rs -330 m reported in FY21.

This compares to a net loss of Rs -101 m in FY20 and a net loss of Rs -191 m in FY19.

Over the past 5 years, RANE HOLDINGS net profit has grown at a CAGR of 18.0%.

What does the cash flow statement of RANE HOLDINGS 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 RANE HOLDINGS reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 153 m as compared to Rs 1,322 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -1,145 m as compared to Rs -963 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 650 m as compared to Rs -356 m in FY21.

Here's the cash flow statement of RANE HOLDINGS for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations1,3191,0981,7981,322153
From Investments-660-867-1,235-963-1,145
From Financial Activity-498-158-326-356650
Net Cashflow161732374-341

What does the Key Ratio analysis of RANE HOLDINGS 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 RANE HOLDINGS reveals:

  • Operating profit margins witnessed a fall and down at 7.7% in FY22 as against 6.6% in FY21.
  • Net profit margins grew from 1.6% in FY21 to 1.6% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.4 as compared to 0.4 in FY21.

Here's the ratio/financial analysis of RANE HOLDINGS for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)10.98.46.56.67.7
Net Profit Margin (%)0.9-0.7-0.5-1.61.6
Debt to Equity Ratio (x)0.30.20.30.40.4

Read: Latest Annual Report Analysis of RANE HOLDINGS

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