RANE HOLDINGS 2022-23 Annual Report Analysis

Mon, 17 Jul

RANE HOLDINGS 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.

RANE HOLDINGS Income Statement Analysis

• Operating income during the year rose 31.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 50.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.6% in FY23 as against 7.4% in FY22.
• Depreciation charges increased by 10.0% and finance costs increased by 45.8% YoY, respectively.
• Other income declined by 22.0% YoY.
• Net profit for the year grew by 149.0% YoY.
• Net profit margins during the year grew from 1.3% in FY22 to 2.5% in FY23.

RANE HOLDINGS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	26,773	35,083	31.0%
Other income	Rs m	374	291	-22.0%
Total Revenues	Rs m	27,147	35,375	30.3%
Gross profit	Rs m	1,992	3,002	50.7%
Depreciation	Rs m	1,288	1,417	10.0%
Interest	Rs m	342	498	45.8%
Profit before tax	Rs m	736	1,378	87.3%
Tax	Rs m	385	505	31.1%
Profit after tax	Rs m	351	873	149.0%
Gross profit margin	%	7.4	8.6
Effective tax rate	%	52.4	36.6
Net profit margin	%	1.3	2.5

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RANE HOLDINGS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 11 billion as compared to Rs 11 billion in FY22, thereby witnessing an increase of 6.8%.
• Long-term debt stood at Rs 3 billion as compared to Rs 3 billion during FY22, a growth of 3.2%.
• Current assets rose 13% and stood at Rs 12 billion, while fixed assets fell 2% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 26 billion as against Rs 24 billion during FY22, thereby witnessing a growth of 5%.

RANE HOLDINGS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,762	8,079	4.1
Current Liabilities	Rs m	10,663	11,387	6.8
Long-term Debt	Rs m	3,243	3,348	3.2
Total Liabilities	Rs m	24,337	25,522	4.9
Current assets	Rs m	10,966	12,369	12.8
Fixed Assets	Rs m	13,371	13,153	-1.6
Total Assets	Rs m	24,337	25,522	4.9

RANE HOLDINGS Cash Flow Statement Analysis

• RANE HOLDINGS's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 1,114.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 32.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -142 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 204 million from the Rs -341 million net cash flows seen during FY22.

RANE HOLDINGS 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	153	1,862	1,114.9%
Cash Flow from Investing Activities	Rs m	-1,145	-1,516	-
Cash Flow from Financing Activities	Rs m	650	-142	-
Net Cash Flow	Rs m	-341	204	-

Current Valuations for RANE HOLDINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 61.1, an improvement from the EPS of Rs 24.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,114.0, stands at 18.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 5.0 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	1,874.9	2,456.8
TTM Earnings per share	Rs	24.6	61.1
Diluted earnings per share	Rs	24.6	61.2
Price to Cash Flow	x	5.1	5.0
TTM P/E ratio	x	19.8	18.0
Price / Book Value ratio	x	1.2	1.4
Market Cap	Rs m	9,475	11,458
Dividends per share (Unadj.)	Rs	12.0	17.0

Ratio Analysis for RANE HOLDINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 1.0x 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 3.8x during FY23, from 3.2x 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 10.8% during FY23, from 4.5% 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 16.4% during FY23, from 9.8% 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 5.4% during FY23, from 2.8% 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	1.0	1.1
Debtors’ Days	Days	785	668
Interest coverage	x	3.2	3.8
Debt to equity ratio	x	0.4	0.4
Return on assets	%	2.8	5.4
Return on equity	%	4.5	10.8
Return on capital employed	%	9.8	16.4

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 up from Rs 645.7 to Rs 1,114.0, registering a gain of Rs 468.3 or around 72.5%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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