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RAILTEL CORP OF INDIA 2022-23 Annual Report Analysis

Thu, 10 Aug

RAILTEL CORP OF INDIA 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.

RAILTEL CORP OF INDIA Income Statement Analysis

• Operating income during the year rose 26.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.2% in FY23 as against 27.0% in FY22.
• Depreciation charges decreased by 3.7% and finance costs increased by 36.0% YoY, respectively.
• Other income grew by 37.7% YoY.
• Net profit for the year declined by 9.5% YoY.
• Net profit margins during the year declined from 13.5% in FY22 to 9.6% in FY23.

RAILTEL CORP OF INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,485	19,635	26.8%
Other income	Rs m	318	438	37.7%
Total Revenues	Rs m	15,803	20,073	27.0%
Gross profit	Rs m	4,179	3,773	-9.7%
Depreciation	Rs m	1,602	1,543	-3.7%
Interest	Rs m	89	121	36.0%
Profit before tax	Rs m	2,806	2,548	-9.2%
Tax	Rs m	717	657	-8.3%
Profit after tax	Rs m	2,089	1,891	-9.5%
Gross profit margin	%	27.0	19.2
Effective tax rate	%	25.5	25.8
Net profit margin	%	13.5	9.6

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RAILTEL CORP OF INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 15 billion as compared to Rs 12 billion in FY22, thereby witnessing an increase of 27.5%.
• Current assets rose 35% and stood at Rs 21 billion, while fixed assets fell 5% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 33 billion as against Rs 28 billion during FY22, thereby witnessing a growth of 17%.

RAILTEL CORP OF INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	15,267	16,489	8.0
Current Liabilities	Rs m	11,865	15,124	27.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	28,332	33,079	16.8
Current assets	Rs m	15,545	20,958	34.8
Fixed Assets	Rs m	12,787	12,121	-5.2
Total Assets	Rs m	28,332	33,079	16.8

RAILTEL CORP OF INDIA Cash Flow Statement Analysis

• RAILTEL CORP OF INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -785 million, an improvement of 24% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 9 million from the Rs -626 million net cash flows seen during FY22.

RAILTEL CORP OF INDIA 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	2,498	2,295	-8.1%
Cash Flow from Investing Activities	Rs m	-2,086	-1,502	-
Cash Flow from Financing Activities	Rs m	-1,038	-785	-
Net Cash Flow	Rs m	-626	9	-

Current Valuations for RAILTEL CORP OF INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.9, an decline from the EPS of Rs 6.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 173.9, stands at 27.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 10.9 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	48.2	61.2
TTM Earnings per share	Rs	6.5	5.9
Diluted earnings per share	Rs	6.5	5.9
Price to Cash Flow	x	7.3	10.9
TTM P/E ratio	x	12.9	27.7
Price / Book Value ratio	x	2.6	2.3
Market Cap	Rs m	39,909	37,405
Dividends per share (Unadj.)	Rs	2.4	2.6

Ratio Analysis for RAILTEL CORP OF INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY23, from 1.3x 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 22.1x during FY23, from 32.6x 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 11.5% during FY23, from 13.7% 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 16.2% during FY23, from 19.0% 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 declined and down at 6.1% during FY23, from 7.7% 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	1.3	1.4
Debtors’ Days	Days	1,614	1,949
Interest coverage	x	32.6	22.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.7	6.1
Return on equity	%	13.7	11.5
Return on capital employed	%	19.0	16.2

To see how RAILTEL CORP OF INDIA has performed over the last 5 years, please visit here.

RAILTEL CORP OF INDIA Share Price Performance

Over the last one year, RAILTEL CORP OF INDIA share price has moved up from Rs 98.2 to Rs 173.9, registering a gain of Rs 75.7 or around 77.1%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,964.8 (up 0.3%). Over the last one year it has moved up from 13,772.9 to 13,964.8, a gain of 192 points (up 1.4%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for RAILTEL CORP OF INDIA and quarterly results for RAILTEL CORP OF INDIA)