ANAND RATHI WEALTH 2023-24 Annual Report Analysis

Mon, 27 May

ANAND RATHI WEALTH has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ANAND RATHI WEALTH Income Statement Analysis

• Operating income during the year rose 32.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 41.9% in FY24 as against 43.5% in FY23.
• Depreciation charges increased by 16.5% and finance costs increased by 64.4% YoY, respectively.
• Other income grew by 169.0% YoY.
• Net profit for the year grew by 33.9% YoY.
• Net profit margins during the year grew from 30.7% in FY23 to 31.2% in FY24.

ANAND RATHI WEALTH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,486	7,243	32.0%
Other income	Rs m	103	276	169.0%
Total Revenues	Rs m	5,589	7,520	34.5%
Gross profit	Rs m	2,387	3,038	27.3%
Depreciation	Rs m	166	194	16.5%
Interest	Rs m	39	65	64.4%
Profit before tax	Rs m	2,284	3,056	33.8%
Tax	Rs m	598	798	33.5%
Profit after tax	Rs m	1,686	2,258	33.9%
Gross profit margin	%	43.5	41.9
Effective tax rate	%	26.2	26.1
Net profit margin	%	30.7	31.2

Don't Miss: Key Information for Long-term Investors

ANAND RATHI WEALTH Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 50.4%.
• Long-term debt down at Rs 1 million as compared to Rs 85 million during FY23, a fall of 98.5%.
• Current assets rose 75% and stood at Rs 6 billion, while fixed assets fell 2% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 41%.

ANAND RATHI WEALTH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,631	6,467	39.6
Current Liabilities	Rs m	1,175	1,767	50.4
Long-term Debt	Rs m	85	1	-98.5
Total Liabilities	Rs m	6,236	8,797	41.1
Current assets	Rs m	3,471	6,091	75.5
Fixed Assets	Rs m	2,766	2,707	-2.1
Total Assets	Rs m	6,236	8,797	41.1

ANAND RATHI WEALTH Cash Flow Statement Analysis

• ANAND RATHI WEALTH's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 230.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 463.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -720 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -316 million from the Rs -223 million net cash flows seen during FY23.

ANAND RATHI WEALTH Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	839	2,776	230.9%
Cash Flow from Investing Activities	Rs m	-421	-2,372	-
Cash Flow from Financing Activities	Rs m	-642	-720	-
Net Cash Flow	Rs m	-223	-316	-

Current Valuations for ANAND RATHI WEALTH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 54.0, an improvement from the EPS of Rs 40.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,066.6, stands at 75.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 26.3 times, while the price to sales ratio stands at 23.5 times.
• The company's price to cash flow (P/CF) ratio stood at 42.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	131.6	173.2
TTM Earnings per share	Rs	40.4	54.0
Diluted earnings per share	Rs	40.3	54.0
Price to Cash Flow	x	18.2	42.7
TTM P/E ratio	x	20.0	75.3
Price / Book Value ratio	x	6.6	16.2
Market Cap	Rs m	30,563	104,661
Dividends per share (Unadj.)	Rs	12.0	14.0

Ratio Analysis for ANAND RATHI WEALTH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.4x during FY24, from 3.0x during FY23. 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 48.3x during FY24, from 59.1x during FY23. 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 34.9% during FY24, from 36.4% during FY24. 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 48.2% during FY24, from 49.3% during FY23. 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 26.4% during FY24, from 27.7% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	3.0	3.4
Debtors’ Days	Days	114	142
Interest coverage	x	59.1	48.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	27.7	26.4
Return on equity	%	36.4	34.9
Return on capital employed	%	49.3	48.2

To see how ANAND RATHI WEALTH has performed over the last 5 years, please visit here.

ANAND RATHI WEALTH Share Price Performance

Over the last one year, ANAND RATHI WEALTH share price has moved up from Rs 853.0 to Rs 4,066.6, registering a gain of Rs 3,213.7 or around 376.8%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for ANAND RATHI WEALTH and quarterly results for ANAND RATHI WEALTH)