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ROTO PUMPS 2022-23 Annual Report Analysis

Thu, 5 Oct

ROTO PUMPS 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.

ROTO PUMPS Income Statement Analysis

• Operating income during the year rose 28.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.9% in FY23 as against 25.8% in FY22.
• Depreciation charges increased by 35.7% and finance costs increased by 91.7% YoY, respectively.
• Other income grew by 0.4% YoY.
• Net profit for the year grew by 9.5% YoY.
• Net profit margins during the year declined from 17.2% in FY22 to 14.7% in FY23.

ROTO PUMPS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,756	2,258	28.6%
Other income	Rs m	43	44	0.4%
Total Revenues	Rs m	1,799	2,301	27.9%
Gross profit	Rs m	454	540	19.1%
Depreciation	Rs m	64	87	35.7%
Interest	Rs m	22	42	91.7%
Profit before tax	Rs m	411	455	10.6%
Tax	Rs m	109	124	13.8%
Profit after tax	Rs m	302	331	9.5%
Gross profit margin	%	25.8	23.9
Effective tax rate	%	26.4	27.2
Net profit margin	%	17.2	14.7

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ROTO PUMPS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 959 million as compared to Rs 596 million in FY22, thereby witnessing an increase of 60.8%.
• Long-term debt stood at Rs 19 million as compared to Rs 4 million during FY22, a growth of 327.2%.
• Current assets rose 20% and stood at Rs 2 billion, while fixed assets rose 45% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 29%.

ROTO PUMPS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,343	1,620	20.6
Current Liabilities	Rs m	596	959	60.8
Long-term Debt	Rs m	4	19	327.2
Total Liabilities	Rs m	2,120	2,736	29.1
Current assets	Rs m	1,362	1,638	20.3
Fixed Assets	Rs m	758	1,098	44.9
Total Assets	Rs m	2,120	2,736	29.1

ROTO PUMPS Cash Flow Statement Analysis

• ROTO PUMPS's cash flow from operating activities (CFO) during FY23 stood at Rs 297 million, an improvement of 220.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -391 million, an improvement of 116.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 136 million, an improvement of 524% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 42 million from the Rs -66 million net cash flows seen during FY22.

ROTO PUMPS 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	93	297	220.6%
Cash Flow from Investing Activities	Rs m	-180	-391	-
Cash Flow from Financing Activities	Rs m	22	136	524.2%
Net Cash Flow	Rs m	-66	42	-

Current Valuations for ROTO PUMPS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.1, an improvement from the EPS of Rs 19.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 351.3, stands at 31.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.8 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 19.1 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	111.8	143.8
TTM Earnings per share	Rs	19.3	21.1
Diluted earnings per share	Rs	9.6	10.5
Price to Cash Flow	x	35.6	19.1
TTM P/E ratio	x	43.1	31.5
Price / Book Value ratio	x	3.4	4.9
Market Cap	Rs m	4,593	7,978
Dividends per share (Unadj.)	Rs	2.9	3.2

Ratio Analysis for ROTO PUMPS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY23, from 2.3x 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 deteriorated and stood at 11.7x during FY23, from 19.6x 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 declined and down at 20.4% during FY23, from 22.5% 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 declined and down at 30.3% during FY23, from 32.2% 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 declined and down at 13.7% during FY23, from 15.3% 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	2.3	1.7
Debtors’ Days	Days	898	804
Interest coverage	x	19.6	11.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.3	13.7
Return on equity	%	22.5	20.4
Return on capital employed	%	32.2	30.3

To see how ROTO PUMPS has performed over the last 5 years, please visit here.

ROTO PUMPS Share Price Performance

Over the last one year, ROTO PUMPS share price has moved down from Rs 419.4 to Rs 351.3, registering a loss of Rs 68.1 or around 16.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 48,193.5 (up 1.3%). Over the last one year it has moved up from 31,494.4 to 48,193.5, a gain of 16,699 points (up 53.0%).

Overall, the S&P BSE SENSEX is up 15.6% over the year.

(To know more, check out historical annual results for ROTO PUMPS and quarterly results for ROTO PUMPS)