RAYMOND 2019-20 Annual Report Analysis

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RAYMOND 2019-20 Annual Report Analysis
Thu, 10 Dec

RAYMOND has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

RAYMOND Income Statement Analysis

  • Operating income during the year fell 1.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 10.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.0% in FY20 as against 8.8% in FY19.
  • Depreciation charges increased by 72.9% and finance costs increased by 30.2% YoY, respectively.
  • Other income declined by 23.5% YoY.
  • Net profit for the year grew by 15.4% YoY.
  • Net profit margins during the year grew from 2.6% in FY19 to 3.1% in FY20.

RAYMOND Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 65,823 64,824 -1.5%
Other income Rs m 1,254 959 -23.5%
Total Revenues Rs m 67,077 65,783 -1.9%
Gross profit Rs m 5,768 5,158 -10.6%
Depreciation Rs m 1,965 3,398 72.9%
Interest Rs m 2,326 3,027 30.2%
Profit before tax Rs m 2,731 -308 -111.3%
Tax Rs m 856 -428 -150.0%
Profit after tax Rs m 1,748 2,018 15.4%
Gross profit margin % 8.8 8.0
Effective tax rate % 31.4 139.1
Net profit margin % 2.6 3.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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RAYMOND Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 43 billion as compared to Rs 41 billion in FY19, thereby witnessing an increase of 3.4%.
  • Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY19, a fall of 5.9%.
  • Current assets rose 10% and stood at Rs 44 billion, while fixed assets rose 30% and stood at Rs 28 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 77 billion as against Rs 67 billion during FY19, thereby witnessing a growth of 16%.

RAYMOND Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 19,538 23,759 21.6
 
Current Liabilities Rs m 41,337 42,748 3.4
Long-term Debt Rs m 4,113 3,869 -5.9
Total Liabilities Rs m 66,645 77,471 16.2
 
Current assets Rs m 40,179 44,068 9.7
Fixed Assets Rs m 21,778 28,339 30.1
Total Assets Rs m 66,645 77,471 16.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RAYMOND Cash Flow Statement Analysis

  • RAYMOND's cash flow from operating activities (CFO) during FY20 stood at Rs 4 billion, an improvement of 48.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -1 billion, an improvement of 13% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 1 billion from the Rs -248 million net cash flows seen during FY19.

RAYMOND Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 2,507 3,729 48.8%
Cash Flow from Investing Activities Rs m -1,226 -1,194 -
Cash Flow from Financing Activities Rs m -1,488 -1,299 -
Net Cash Flow Rs m -248 1,126 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RAYMOND

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.2, an improvement from the EPS of Rs 28.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 330.0, stands at -5.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 1,072.4 1,001.8
TTM Earnings per share Rs 28.5 31.2
Diluted earnings per share Rs 27.0 31.2
Price to Cash Flow x 5.3 5.5
TTM P/E ratio x -5.5 -5.8
Price / Book Value ratio x 2.7 1.5
Market Cap Rs m 20,255 21,354
Dividends per share (Unadj.) Rs 3.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for RAYMOND

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY20, from 1.0x during FY19. 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 0.9x during FY20, from 2.2x during FY19. 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 8.5% during FY20, from 8.9% during FY20. 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 16.7% during FY20, from 20.8% during FY19. 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 6.5% during FY20, from 6.1% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 1.0 1.0
Debtors’ Days Days 70 65
Interest coverage x 2.2 0.9
Debt to equity ratio x 0.2 0.2
Return on assets % 6.1 6.5
Return on equity % 8.9 8.5
Return on capital employed % 20.8 16.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

RAYMOND Share Price Performance

Over the last one year, RAYMOND share price has moved down from Rs 668.5 to Rs 330.0, registering a loss of Rs 338.5 or around 50.6%.

Overall, the S&P BSE SENSEX is up 13.2% over the year.

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

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Related Views on News

RAYMOND Announces Quarterly Results (3QFY20); Net Profit Down 16.7% (Quarterly Result Update)

Jan 27, 2020 | Updated on Jan 27, 2020

For the quarter ended December 2019, RAYMOND has posted a net profit of Rs 376 m (down 16.7% YoY). Sales on the other hand came in at Rs 19 bn (up 12.6% YoY). Read on for a complete analysis of RAYMOND's quarterly results.

RAYMOND Announces Quarterly Results (2QFY20); Net Profit Up 23.8% (Quarterly Result Update)

Nov 1, 2019 | Updated on Nov 1, 2019

For the quarter ended September 2019, RAYMOND has posted a net profit of Rs 824 m (up 23.8% YoY). Sales on the other hand came in at Rs 19 bn (up 1.9% YoY). Read on for a complete analysis of RAYMOND's quarterly results.

RAYMOND 2018-19 Annual Report Analysis (Annual Result Update)

May 27, 2019 | Updated on May 27, 2019

Here's an analysis of the annual report of RAYMOND for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of RAYMOND. Also includes updates on the valuation of RAYMOND.

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