RALLIS 2019-20 Annual Report Analysis
Thu, 10 Dec

RALLIS 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.

RALLIS Income Statement Analysis

  • Operating income during the year rose 13.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.0% in FY20 as against 12.1% in FY19.
  • Depreciation charges increased by 33.5% and finance costs increased by 16.4% YoY, respectively.
  • Other income grew by 12.0% YoY.
  • Net profit for the year grew by 18.7% YoY.
  • Net profit margins during the year grew from 7.7% in FY19 to 8.0% in FY20.

RALLIS Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 19,840 22,518 13.5%
Other income Rs m 307 343 12.0%
Total Revenues Rs m 20,146 22,862 13.5%
Gross profit Rs m 2,409 2,708 12.4%
Depreciation Rs m 461 615 33.5%
Interest Rs m 53 61 16.4%
Profit before tax Rs m 2,203 2,375 7.8%
Tax Rs m 655 538 -17.8%
Profit after tax Rs m 1,548 1,837 18.7%
Gross profit margin % 12.1 12.0
Effective tax rate % 29.7 22.7
Net profit margin % 7.7 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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RALLIS Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 10 billion as compared to Rs 8 billion in FY19, thereby witnessing an increase of 16.8%.
  • Long-term debt down at Rs 124 million as compared to Rs 158 million during FY19, a fall of 21.8%.
  • Current assets rose 14% and stood at Rs 16 billion, while fixed assets rose 6% and stood at Rs 7 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 24 billion as against Rs 22 billion during FY19, thereby witnessing a growth of 13%.

RALLIS Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 12,859 14,095 9.6
 
Current Liabilities Rs m 8,142 9,509 16.8
Long-term Debt Rs m 158 124 -21.8
Total Liabilities Rs m 21,626 24,485 13.2
 
Current assets Rs m 14,132 16,142 14.2
Fixed Assets Rs m 6,315 6,685 5.9
Total Assets Rs m 21,626 24,485 13.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RALLIS Cash Flow Statement Analysis

  • RALLIS's cash flow from operating activities (CFO) during FY20 stood at Rs 3 billion, an improvement of 320.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -2 billion, an improvement of 378.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -744 million on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 165 million from the Rs -229 million net cash flows seen during FY19.

RALLIS 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 801 3,368 320.7%
Cash Flow from Investing Activities Rs m -515 -2,459 -
Cash Flow from Financing Activities Rs m -515 -744 -
Net Cash Flow Rs m -229 165 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RALLIS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.4, an improvement from the EPS of Rs 8.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 288.3, stands at 26.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 22.9 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 102.0 115.8
TTM Earnings per share Rs 8.0 9.4
Diluted earnings per share Rs 8.0 9.4
Price to Cash Flow x 27.9 22.9
TTM P/E ratio x 26.2 26.2
Price / Book Value ratio x 3.0 2.6
Market Cap Rs m 56,056 56,056
Dividends per share (Unadj.) Rs 2.5 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for RALLIS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY20, from 1.7x 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 39.9x during FY20, from 43.0x 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 improved and stood at 13.0% during FY20, from 12.0% 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 17.1% during FY20, from 17.3% 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 7.8% during FY20, from 7.4% 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 1.7 1.7
Debtors’ Days Days 83 73
Interest coverage x 43.0 39.9
Debt to equity ratio x 0.0 0.0
Return on assets % 7.4 7.8
Return on equity % 12.0 13.0
Return on capital employed % 17.3 17.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

RALLIS Share Price Performance

Over the last one year, RALLIS share price has moved up from Rs 179.8 to Rs 288.3, registering a gain of Rs 108.5 or around 60.4%.

Overall, the S&P BSE SENSEX is up 13.3% over the year.

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