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RUPA & CO 2022-23 Annual Report Analysis

Fri, 21 Jul

RUPA & CO 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.

RUPA & CO Income Statement Analysis

• Operating income during the year fell 22.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 66.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.8% in FY23 as against 18.2% in FY22.
• Depreciation charges decreased by 4.6% and finance costs increased by 23.8% YoY, respectively.
• Other income grew by 50.0% YoY.
• Net profit for the year declined by 72.0% YoY.
• Net profit margins during the year declined from 13.0% in FY22 to 4.7% in FY23.

RUPA & CO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,753	11,431	-22.5%
Other income	Rs m	108	162	50.0%
Total Revenues	Rs m	14,860	11,593	-22.0%
Gross profit	Rs m	2,685	895	-66.7%
Depreciation	Rs m	139	133	-4.6%
Interest	Rs m	187	232	23.8%
Profit before tax	Rs m	2,467	692	-71.9%
Tax	Rs m	549	155	-71.7%
Profit after tax	Rs m	1,918	537	-72.0%
Gross profit margin	%	18.2	7.8
Effective tax rate	%	22.2	22.4
Net profit margin	%	13.0	4.7

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RUPA & CO Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 7 billion in FY22, thereby witnessing an decrease of -32.8%.
• Long-term debt down at Rs 102 million as compared to Rs 159 million during FY22, a fall of 35.9%.
• Current assets fell 16% and stood at Rs 11 billion, while fixed assets rose 8% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 16 billion during FY22, thereby witnessing a fall of 12%.

RUPA & CO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,818	9,118	3.4
Current Liabilities	Rs m	6,521	4,383	-32.8
Long-term Debt	Rs m	159	102	-35.9
Total Liabilities	Rs m	15,771	13,879	-12.0
Current assets	Rs m	13,188	11,099	-15.8
Fixed Assets	Rs m	2,584	2,780	7.6
Total Assets	Rs m	15,771	13,879	-12.0

RUPA & CO Cash Flow Statement Analysis

• RUPA & CO'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 -241 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 24 million from the Rs 11 million net cash flows seen during FY22.

RUPA & CO 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	-1,161	1,848	-
Cash Flow from Investing Activities	Rs m	-336	-241	-
Cash Flow from Financing Activities	Rs m	1,508	-1,584	-
Net Cash Flow	Rs m	11	24	108.2%

Current Valuations for RUPA & CO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.8, an decline from the EPS of Rs 24.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 267.2, stands at 39.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 46.4 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	185.5	143.7
TTM Earnings per share	Rs	24.1	6.8
Diluted earnings per share	Rs	24.1	6.8
Price to Cash Flow	x	16.9	46.4
TTM P/E ratio	x	18.4	39.5
Price / Book Value ratio	x	3.8	3.4
Market Cap	Rs m	33,764	31,096
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for RUPA & CO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY23, from 2.0x 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 deteriorated and stood at 4.0x during FY23, from 14.2x 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 declined and down at 5.9% during FY23, from 21.8% 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 10.0% during FY23, from 29.6% 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 5.5% during FY23, from 13.4% 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	2.0	2.5
Debtors’ Days	Days	1,354	1,382
Interest coverage	x	14.2	4.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.4	5.5
Return on equity	%	21.8	5.9
Return on capital employed	%	29.6	10.0

To see how RUPA & CO has performed over the last 5 years, please visit here.

RUPA & CO Share Price Performance

Over the last one year, RUPA & CO share price has moved down from Rs 351.2 to Rs 267.2, registering a loss of Rs 84.1 or around 23.9%.

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for RUPA & CO and quarterly results for RUPA & CO)