RAYMOND 2022-23 Annual Report Analysis

Tue, 20 Jun

RAYMOND 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.

RAYMOND Income Statement Analysis

• Operating income during the year rose 33.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 102.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.3% in FY23 as against 8.7% in FY22.
• Depreciation charges decreased by 1.9% and finance costs increased by 13.0% YoY, respectively.
• Other income declined by 19.0% YoY.
• Net profit for the year grew by 102.5% YoY.
• Net profit margins during the year grew from 4.3% in FY22 to 6.5% in FY23.

RAYMOND Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	61,785	82,147	33.0%
Other income	Rs m	1,705	1,381	-19.0%
Total Revenues	Rs m	63,490	83,528	31.6%
Gross profit	Rs m	5,401	10,918	102.1%
Depreciation	Rs m	2,398	2,354	-1.9%
Interest	Rs m	2,277	2,573	13.0%
Profit before tax	Rs m	2,432	7,373	203.2%
Tax	Rs m	-219	2,004	NA
Profit after tax	Rs m	2,651	5,370	102.5%
Gross profit margin	%	8.7	13.3
Effective tax rate	%	-9.0	27.2
Net profit margin	%	4.3	6.5

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RAYMOND Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 38 billion as compared to Rs 34 billion in FY22, thereby witnessing an increase of 10.2%.
• Long-term debt down at Rs 10 billion as compared to Rs 12 billion during FY22, a fall of 14.7%.
• Current assets rose 13% and stood at Rs 50 billion, while fixed assets rose 17% and stood at Rs 30 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 80 billion as against Rs 70 billion during FY22, thereby witnessing a growth of 15%.

RAYMOND Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	23,573	28,971	22.9
Current Liabilities	Rs m	34,130	37,599	10.2
Long-term Debt	Rs m	11,612	9,907	-14.7
Total Liabilities	Rs m	69,803	79,985	14.6
Current assets	Rs m	44,194	49,948	13.0
Fixed Assets	Rs m	25,609	30,036	17.3
Total Assets	Rs m	69,803	79,985	14.6

RAYMOND Cash Flow Statement Analysis

• RAYMOND's cash flow from operating activities (CFO) during FY23 stood at Rs 8 billion, an improvement of 18.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion, an improvement of 12.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion, an improvement of 1% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 95 million from the Rs -706 million net cash flows seen during FY22.

RAYMOND 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	6,774	8,042	18.7%
Cash Flow from Investing Activities	Rs m	-4,249	-4,758	-
Cash Flow from Financing Activities	Rs m	-3,232	-3,189	-
Net Cash Flow	Rs m	-706	95	-

Current Valuations for RAYMOND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 80.7, an improvement from the EPS of Rs 39.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,756.2, stands at 22.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 10.3 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	928.1	1,234.0
TTM Earnings per share	Rs	39.8	80.7
Diluted earnings per share	Rs	39.8	80.7
Price to Cash Flow	x	11.3	10.3
TTM P/E ratio	x	21.0	22.4
Price / Book Value ratio	x	1.7	2.7
Market Cap	Rs m	38,977	79,321
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for RAYMOND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.3x 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 3.9x during FY23, from 2.1x 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 18.5% during FY23, from 11.2% 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 25.6% during FY23, from 13.4% 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 9.9% during FY23, from 7.1% 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	1.3	1.3
Debtors’ Days	Days	516	331
Interest coverage	x	2.1	3.9
Debt to equity ratio	x	0.5	0.3
Return on assets	%	7.1	9.9
Return on equity	%	11.2	18.5
Return on capital employed	%	13.4	25.6

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 852.6 to Rs 1,756.2, registering a gain of Rs 903.6 or around 106.0%.

Overall, the S&P BSE SENSEX is up 22.4% over the year.

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