RATNAMANI METALS 2022-23 Annual Report Analysis

Mon, 10 Jul

RATNAMANI METALS 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.

RATNAMANI METALS Income Statement Analysis

• Operating income during the year rose 39.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 54.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.4% in FY23 as against 15.8% in FY22.
• Depreciation charges decreased by 4.6% and finance costs increased by 7.6% YoY, respectively.
• Other income declined by 17.4% YoY.
• Net profit for the year grew by 59.3% YoY.
• Net profit margins during the year grew from 10.3% in FY22 to 11.8% in FY23.

RATNAMANI METALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	31,388	43,700	39.2%
Other income	Rs m	378	312	-17.4%
Total Revenues	Rs m	31,766	44,012	38.6%
Gross profit	Rs m	4,947	7,621	54.1%
Depreciation	Rs m	802	765	-4.6%
Interest	Rs m	214	230	7.6%
Profit before tax	Rs m	4,309	6,938	61.0%
Tax	Rs m	1,083	1,798	66.0%
Profit after tax	Rs m	3,226	5,140	59.3%
Gross profit margin	%	15.8	17.4
Effective tax rate	%	25.1	25.9
Net profit margin	%	10.3	11.8

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

RATNAMANI METALS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 32.8%.
• Long-term debt down at Rs 451 million as compared to Rs 963 million during FY22, a fall of 53.2%.
• Current assets rose 23% and stood at Rs 24 billion, while fixed assets rose 16% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 36 billion as against Rs 30 billion during FY22, thereby witnessing a growth of 20%.

RATNAMANI METALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	22,483	26,988	20.0
Current Liabilities	Rs m	5,657	7,513	32.8
Long-term Debt	Rs m	963	451	-53.2
Total Liabilities	Rs m	29,625	35,695	20.5
Current assets	Rs m	19,647	24,132	22.8
Fixed Assets	Rs m	9,978	11,563	15.9
Total Assets	Rs m	29,625	35,695	20.5

RATNAMANI METALS Cash Flow Statement Analysis

• RATNAMANI METALS's cash flow from operating activities (CFO) during FY23 stood at Rs 3 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 -832 million, an improvement of 38% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -90 million from the Rs 1 million net cash flows seen during FY22.

RATNAMANI METALS 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	-2,830	3,174	-
Cash Flow from Investing Activities	Rs m	4,178	-2,430	-
Cash Flow from Financing Activities	Rs m	-1,345	-832	-
Net Cash Flow	Rs m	1	-90	-

Current Valuations for RATNAMANI METALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 73.3, an improvement from the EPS of Rs 69.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,394.0, stands at 32.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 23.3 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	671.7	623.5
TTM Earnings per share	Rs	69.0	73.3
Diluted earnings per share	Rs	46.0	73.3
Price to Cash Flow	x	30.1	23.3
TTM P/E ratio	x	37.6	32.8
Price / Book Value ratio	x	3.0	5.1
Market Cap	Rs m	67,984	137,300
Dividends per share (Unadj.)	Rs	14.0	12.0

Ratio Analysis for RATNAMANI METALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.2x during FY23, from 3.5x 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 31.2x during FY23, from 21.2x 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 19.0% during FY23, from 14.4% 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 26.1% during FY23, from 19.3% 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 15.0% during FY23, from 11.6% 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	3.5	3.2
Debtors’ Days	Days	699	808
Interest coverage	x	21.2	31.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.6	15.0
Return on equity	%	14.4	19.0
Return on capital employed	%	19.3	26.1

To see how RATNAMANI METALS has performed over the last 5 years, please visit here.

RATNAMANI METALS Share Price Performance

Over the last one year, RATNAMANI METALS share price has moved up from Rs 1,659.1 to Rs 2,394.0, registering a gain of Rs 735.0 or around 44.3%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,107.3 (up 1.8%). Over the last one year it has moved up from 15,950.4 to 21,107.3, a gain of 5,157 points (up 32.3%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for RATNAMANI METALS and quarterly results for RATNAMANI METALS)