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RAJ RAYON IND. 2022-23 Annual Report Analysis

Fri, 31 Mar

RAJ RAYON IND. 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.

RAJ RAYON IND. Income Statement Analysis

• Operating income during the year rose 0.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 99.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 1.3% in FY23 as against 0.0% in FY22.
• Depreciation charges decreased by 51.9% and finance costs increased by 43133.3% YoY, respectively.
• Other income grew by 707.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.0% in FY22 to 0.0% in FY23.

RAJ RAYON IND. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	0	1,372	0.0%
Other income	Rs m	1	4	707.3%
Total Revenues	Rs m	1	1,377	250,205.5%
Gross profit	Rs m	6,687	18	-99.7%
Depreciation	Rs m	280	135	-51.9%
Interest	Rs m	0	13	43,133.3%
Profit before tax	Rs m	6,408	-125	NA
Tax	Rs m	0	-2	0.0
Profit after tax	Rs m	6,408	-124	NA
Gross profit margin	%	0.0	1.3
Effective tax rate	%	0.0	1.3
Net profit margin	%	0.0	0.0

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RAJ RAYON IND. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 21 million in FY22, thereby witnessing an increase of 6433.8%.
• Long-term debt stood at Rs 687 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 3,030% and stood at Rs 1 billion, while fixed assets rose 85% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 1 billion during FY22, thereby witnessing a growth of 204%.

RAJ RAYON IND. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	352	1,041	196.0
Current Liabilities	Rs m	21	1,381	6,433.8
Long-term Debt	Rs m	0	687	0.0
Total Liabilities	Rs m	1,023	3,109	203.8
Current assets	Rs m	41	1,288	3,029.9
Fixed Assets	Rs m	982	1,821	85.4
Total Assets	Rs m	1,023	3,109	203.8

RAJ RAYON IND. Cash Flow Statement Analysis

• RAJ RAYON IND.'s cash flow from operating activities (CFO) during FY23 stood at Rs -752 million, an improvement of 1,423.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -650 million, an improvement of 1,018.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 1,202% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 million from the Rs 0 million net cash flows seen during FY22.

RAJ RAYON IND. 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	-49	-752	-
Cash Flow from Investing Activities	Rs m	-58	-650	-
Cash Flow from Financing Activities	Rs m	108	1,403	1,201.9%
Net Cash Flow	Rs m	0	1	264.5%

Current Valuations for RAJ RAYON IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.2, an decline from the EPS of Rs 2,810.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 64.8, stands at -291.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 34.6 times, while the price to sales ratio stands at 26.3 times.
• The company's price to cash flow (P/CF) ratio stood at 2,412.1 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	0.0	2.5
TTM Earnings per share	Rs	2,810.4	-0.2
Diluted earnings per share	Rs	11.5	-0.2
Price to Cash Flow	x	0.2	2,412.1
TTM P/E ratio	x	0.2	-291.0
Price / Book Value ratio	x	0.0	25.0
Market Cap	Rs m	3	26,039
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RAJ RAYON IND.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY23, from 1.9x 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 -8.7x during FY23, from 213,592.3x 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 -11.9% during FY23, from 1,821.3% 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 -6.5% during FY23, from 1,821.3% 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 -3.6% during FY23, from 626.1% 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	1.9	0.9
Debtors’ Days	Days	0	614
Interest coverage	x	213,592.3	-8.7
Debt to equity ratio	x	0.0	0.7
Return on assets	%	626.1	-3.6
Return on equity	%	1,821.3	-11.9
Return on capital employed	%	1,821.3	-6.5

To see how RAJ RAYON IND. has performed over the last 5 years, please visit here.

RAJ RAYON IND. Share Price Performance

Over the last one year, RAJ RAYON IND. share price has moved up from Rs 2.2 to Rs 64.8, registering a gain of Rs 62.5 or around 2792.0%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for RAJ RAYON IND. and quarterly results for RAJ RAYON IND.)