ROSSELL INDIA 2022-23 Annual Report Analysis

Mon, 10 Jul

ROSSELL INDIA 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.

ROSSELL INDIA Income Statement Analysis

• Operating income during the year rose 18.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.9% in FY23 as against 17.3% in FY22.
• Depreciation charges increased by 10.3% and finance costs increased by 17.9% YoY, respectively.
• Other income declined by 6.7% YoY.
• Net profit for the year declined by 7.9% YoY.
• Net profit margins during the year declined from 10.0% in FY22 to 7.8% in FY23.

ROSSELL INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,991	3,536	18.2%
Other income	Rs m	43	40	-6.7%
Total Revenues	Rs m	3,033	3,576	17.9%
Gross profit	Rs m	517	528	2.2%
Depreciation	Rs m	125	137	10.3%
Interest	Rs m	100	118	17.9%
Profit before tax	Rs m	335	312	-6.7%
Tax	Rs m	35	36	3.6%
Profit after tax	Rs m	300	276	-7.9%
Gross profit margin	%	17.3	14.9
Effective tax rate	%	10.4	11.5
Net profit margin	%	10.0	7.8

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ROSSELL INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 19.8%.
• Long-term debt down at Rs 150 million as compared to Rs 250 million during FY22, a fall of 40.0%.
• Current assets rose 31% and stood at Rs 2 billion, while fixed assets rose 4% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 15%.

ROSSELL INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,464	2,871	16.5
Current Liabilities	Rs m	1,739	2,083	19.8
Long-term Debt	Rs m	250	150	-40.0
Total Liabilities	Rs m	4,480	5,137	14.7
Current assets	Rs m	1,798	2,354	30.9
Fixed Assets	Rs m	2,681	2,783	3.8
Total Assets	Rs m	4,480	5,137	14.7

ROSSELL INDIA Cash Flow Statement Analysis

• ROSSELL INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 259 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -403 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 137 million, an improvement of 141% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -8 million from the Rs 7 million net cash flows seen during FY22.

ROSSELL INDIA 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	332	259	-22.1%
Cash Flow from Investing Activities	Rs m	5	-403	-
Cash Flow from Financing Activities	Rs m	-331	137	-
Net Cash Flow	Rs m	7	-8	-

Current Valuations for ROSSELL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.3, an decline from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 361.6, stands at 49.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 24.0 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	81.5	93.8
TTM Earnings per share	Rs	8.2	7.3
Diluted earnings per share	Rs	8.0	7.3
Price to Cash Flow	x	17.3	24.0
TTM P/E ratio	x	31.4	49.3
Price / Book Value ratio	x	2.3	3.5
Market Cap	Rs m	5,767	9,913
Dividends per share (Unadj.)	Rs	0.3	0.4

Ratio Analysis for ROSSELL INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 1.0x 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 deteriorated and stood at 3.7x during FY23, from 4.4x 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 declined and down at 9.6% during FY23, from 12.2% 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 declined and down at 14.2% during FY23, from 16.0% 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 declined and down at 7.7% during FY23, from 8.9% 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	1.0	1.1
Debtors’ Days	Days	405	493
Interest coverage	x	4.4	3.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.9	7.7
Return on equity	%	12.2	9.6
Return on capital employed	%	16.0	14.2

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

ROSSELL INDIA Share Price Performance

Over the last one year, ROSSELL INDIA share price has moved up from Rs 170.7 to Rs 361.6, registering a gain of Rs 191.0 or around 111.9%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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