ROLEX RINGS 2022-23 Annual Report Analysis

Fri, 31 Mar

ROLEX RINGS 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.

ROLEX RINGS Income Statement Analysis

• Operating income during the year rose 16.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.1% in FY23 as against 22.7% in FY22.
• Depreciation charges increased by 5.4% and finance costs decreased by 51.9% YoY, respectively.
• Other income grew by 69.0% YoY.
• Net profit for the year grew by 50.2% YoY.
• Net profit margins during the year grew from 13.1% in FY22 to 16.8% in FY23.

ROLEX RINGS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	10,102	11,790	16.7%
Other income	Rs m	114	193	69.0%
Total Revenues	Rs m	10,217	11,983	17.3%
Gross profit	Rs m	2,289	2,607	13.9%
Depreciation	Rs m	256	269	5.4%
Interest	Rs m	204	98	-51.9%
Profit before tax	Rs m	1,944	2,433	25.2%
Tax	Rs m	625	452	-27.7%
Profit after tax	Rs m	1,319	1,981	50.2%
Gross profit margin	%	22.7	22.1
Effective tax rate	%	32.1	18.6
Net profit margin	%	13.1	16.8

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ROLEX RINGS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -39.4%.
• Current assets rose 1% and stood at Rs 5 billion, while fixed assets rose 5% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 10 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 3%.

ROLEX RINGS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,448	7,430	36.4
Current Liabilities	Rs m	3,376	2,046	-39.4
Long-term Debt	Rs m	205	0	-100.0
Total Liabilities	Rs m	9,850	10,133	2.9
Current assets	Rs m	5,378	5,446	1.3
Fixed Assets	Rs m	4,472	4,687	4.8
Total Assets	Rs m	9,850	10,133	2.9

ROLEX RINGS Cash Flow Statement Analysis

• ROLEX RINGS's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 262.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -441 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 179 million from the Rs -9 million net cash flows seen during FY22.

ROLEX RINGS 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	589	2,135	262.6%
Cash Flow from Investing Activities	Rs m	-678	-441	-
Cash Flow from Financing Activities	Rs m	80	-1,514	-
Net Cash Flow	Rs m	-9	179	-

Current Valuations for ROLEX RINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 72.7, an improvement from the EPS of Rs 48.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,000.8, stands at 27.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.3 times, while the price to sales ratio stands at 4.6 times.
• The company's price to cash flow (P/CF) ratio stood at 20.0 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	371.0	433.0
TTM Earnings per share	Rs	48.4	72.7
Diluted earnings per share	Rs	48.4	72.7
Price to Cash Flow	x	21.7	20.0
TTM P/E ratio	x	25.9	27.5
Price / Book Value ratio	x	6.0	6.1
Market Cap	Rs m	32,543	45,071
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ROLEX RINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY23, from 1.6x 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 25.7x during FY23, from 10.5x 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 26.7% during FY23, from 24.2% 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 declined and down at 34.1% during FY23, from 38.0% 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 20.5% during FY23, from 15.5% 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	1.6	2.7
Debtors’ Days	Days	83	71
Interest coverage	x	10.5	25.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.5	20.5
Return on equity	%	24.2	26.7
Return on capital employed	%	38.0	34.1

To see how ROLEX RINGS has performed over the last 5 years, please visit here.

ROLEX RINGS Share Price Performance

Over the last one year, ROLEX RINGS share price has moved up from Rs 1,253.4 to Rs 2,000.8, registering a gain of Rs 747.4 or around 59.6%.

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

(To know more, check out historical annual results for ROLEX RINGS and quarterly results for ROLEX RINGS)