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

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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

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

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

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

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)