RAIL VIKAS NIGAM 2022-23 Annual Report Analysis

Tue, 5 Sep

RAIL VIKAS NIGAM 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.

RAIL VIKAS NIGAM Income Statement Analysis

• Operating income during the year rose 4.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.9% in FY23 as against 6.3% in FY22.
• Depreciation charges increased by 6.7% and finance costs increased by 3.1% YoY, respectively.
• Other income grew by 24.5% YoY.
• Net profit for the year grew by 28.0% YoY.
• Net profit margins during the year grew from 5.7% in FY22 to 7.0% in FY23.

RAIL VIKAS NIGAM Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	193,817	202,816	4.6%
Other income	Rs m	8,002	9,965	24.5%
Total Revenues	Rs m	201,819	212,780	5.4%
Gross profit	Rs m	12,140	14,054	15.8%
Depreciation	Rs m	209	223	6.7%
Interest	Rs m	5,637	5,814	3.1%
Profit before tax	Rs m	14,296	17,982	25.8%
Tax	Rs m	3,195	3,776	18.2%
Profit after tax	Rs m	11,101	14,206	28.0%
Gross profit margin	%	6.3	6.9
Effective tax rate	%	22.3	21.0
Net profit margin	%	5.7	7.0

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RAIL VIKAS NIGAM Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 48 billion as compared to Rs 74 billion in FY22, thereby witnessing an decrease of -34.8%.
• Long-term debt down at Rs 60 billion as compared to Rs 63 billion during FY22, a fall of 4.5%.
• Current assets fell 37% and stood at Rs 94 billion, while fixed assets rose 76% and stood at Rs 94 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 188 billion as against Rs 204 billion during FY22, thereby witnessing a fall of 8%.

RAIL VIKAS NIGAM Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	63,247	73,251	15.8
Current Liabilities	Rs m	74,034	48,247	-34.8
Long-term Debt	Rs m	63,154	60,306	-4.5
Total Liabilities	Rs m	203,529	187,912	-7.7
Current assets	Rs m	150,383	94,279	-37.3
Fixed Assets	Rs m	53,145	93,633	76.2
Total Assets	Rs m	203,529	187,912	-7.7

RAIL VIKAS NIGAM Cash Flow Statement Analysis

• RAIL VIKAS NIGAM's cash flow from operating activities (CFO) during FY23 stood at Rs -41 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 14 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -10 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -38 billion from the Rs 32 billion net cash flows seen during FY22.

RAIL VIKAS NIGAM 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	47,934	-40,763	-
Cash Flow from Investing Activities	Rs m	-14,315	13,550	-
Cash Flow from Financing Activities	Rs m	-1,894	-10,360	-
Net Cash Flow	Rs m	31,726	-37,573	-

Current Valuations for RAIL VIKAS NIGAM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.8, an improvement from the EPS of Rs 5.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 156.4, stands at 24.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 8.2 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	93.0	97.3
TTM Earnings per share	Rs	5.3	6.8
Diluted earnings per share	Rs	5.3	6.8
Price to Cash Flow	x	6.0	8.2
TTM P/E ratio	x	6.3	24.7
Price / Book Value ratio	x	1.2	1.6
Market Cap	Rs m	74,122	117,960
Dividends per share (Unadj.)	Rs	1.8	2.1

Ratio Analysis for RAIL VIKAS NIGAM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x 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 improved and stood at 4.1x during FY23, from 3.5x 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 19.4% during FY23, from 17.6% 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 17.8% during FY23, from 15.8% 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 10.7% during FY23, from 8.2% 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	2.0
Debtors’ Days	Days	2	2
Interest coverage	x	3.5	4.1
Debt to equity ratio	x	1.0	0.8
Return on assets	%	8.2	10.7
Return on equity	%	17.6	19.4
Return on capital employed	%	15.8	17.8

To see how RAIL VIKAS NIGAM has performed over the last 5 years, please visit here.

RAIL VIKAS NIGAM Share Price Performance

Over the last one year, RAIL VIKAS NIGAM share price has moved up from Rs 33.0 to Rs 156.4, registering a gain of Rs 123.4 or around 374.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 45,901.9 (up 0.6%). Over the last one year it has moved up from 33,170.4 to 45,901.9, a gain of 12,731 points (up 38.4%).

Overall, the S&P BSE SENSEX is up 11.9% over the year.

(To know more, check out historical annual results for RAIL VIKAS NIGAM and quarterly results for RAIL VIKAS NIGAM)