RAYMOND 2021-22 Annual Report Analysis

Sat, 20 Aug

RAYMOND has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

RAYMOND Income Statement Analysis

• Operating income during the year rose 79.3% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.9% in FY22 as against 1.9% in FY21.
• Depreciation charges decreased by 23.7% and finance costs decreased by 17.5% YoY, respectively.
• Other income declined by 15.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 8.5% in FY21 to 4.4% in FY22.

RAYMOND Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	34,465	61,785	79.3%
Other income	Rs m	2,014	1,695	-15.8%
Total Revenues	Rs m	36,478	63,480	74.0%
Gross profit	Rs m	-662	5,476	NA
Depreciation	Rs m	3,142	2,398	-23.7%
Interest	Rs m	2,760	2,277	-17.5%
Profit before tax	Rs m	-4,551	2,496	NA
Tax	Rs m	-1,609	-219	NA
Profit after tax	Rs m	-2,942	2,715	NA
Gross profit margin	%	-1.9	8.9
Effective tax rate	%	35.4	-8.8
Net profit margin	%	-8.5	4.4

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RAYMOND Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 34 billion as compared to Rs 30 billion in FY21, thereby witnessing an increase of 15.1%.
• Long-term debt down at Rs 12 billion as compared to Rs 12 billion during FY21, a fall of 1.2%.
• Current assets rose 18% and stood at Rs 44 billion, while fixed assets fell 4% and stood at Rs 26 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 70 billion as against Rs 64 billion during FY21, thereby witnessing a growth of 9%.

RAYMOND Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	20,963	23,573	12.5
Current Liabilities	Rs m	29,691	34,163	15.1
Long-term Debt	Rs m	11,755	11,612	-1.2
Total Liabilities	Rs m	64,093	69,836	9.0
Current assets	Rs m	37,363	44,194	18.3
Fixed Assets	Rs m	26,729	25,642	-4.1
Total Assets	Rs m	64,093	69,836	9.0

RAYMOND Cash Flow Statement Analysis

• RAYMOND's cash flow from operating activities (CFO) during FY22 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -3 billion, an improvement of 52% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -706 million from the Rs 998 million net cash flows seen during FY21.

RAYMOND Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	7,038	6,774	-3.7%
Cash Flow from Investing Activities	Rs m	644	-4,249	-
Cash Flow from Financing Activities	Rs m	-6,683	-3,232	-
Net Cash Flow	Rs m	998	-706	-

Current Valuations for RAYMOND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.8, an improvement from the EPS of Rs -44.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 972.6, stands at 12.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 7.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	517.7	928.1
TTM Earnings per share	Rs	-44.2	40.8
Diluted earnings per share	Rs	-44.2	40.8
Price to Cash Flow	x	120.3	7.6
TTM P/E ratio	x	-8.2	12.9
Price / Book Value ratio	x	1.0	1.7
Market Cap	Rs m	20,684	38,977
Dividends per share (Unadj.)	Rs	0.0	3.0

Ratio Analysis for RAYMOND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY22, from 1.3x during FY21. 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 2.1x during FY22, from -0.6x during FY21. 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 11.5% during FY22, from -14.0% during FY22. 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 13.6% during FY22, from -5.5% during FY21. 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 7.1% during FY22, from -0.3% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.3	1.3
Debtors’ Days	Days	1,015	516
Interest coverage	x	-0.6	2.1
Debt to equity ratio	x	0.6	0.5
Return on assets	%	-0.3	7.1
Return on equity	%	-14.0	11.5
Return on capital employed	%	-5.5	13.6

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 up from Rs 403.5 to Rs 972.6, registering a gain of Rs 569.1 or around 141.0%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

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

Read: Latest Annual Report Analysis of RAYMOND