BARODA RAYON 2022-23 Annual Report Analysis

Tue, 7 Nov

BARODA RAYON 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.

BARODA RAYON 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 25.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 435.2% in FY23 as against 0.0% in FY22.
• Depreciation charges increased by 0.0% and finance costs increased by 9.5% YoY, respectively.
• Other income declined by 38.6% YoY.
• Net profit for the year declined by 27.2% YoY.
• Net profit margins during the year grew from 0.0% in FY22 to 0.0% in FY23.

BARODA RAYON Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	0	584	0.0%
Other income	Rs m	410	252	-38.6%
Total Revenues	Rs m	410	836	104.0%
Gross profit	Rs m	3,397	2,543	-25.1%
Depreciation	Rs m	0	0	0.0%
Interest	Rs m	61	67	9.5%
Profit before tax	Rs m	3,746	2,727	-27.2%
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	3,746	2,727	-27.2%
Gross profit margin	%	0.0	435.2
Effective tax rate	%	0.0	0.0
Net profit margin	%	0.0	0.0

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BARODA RAYON 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 0.4%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY22, a fall of 20.0%.
• Current assets rose 57% and stood at Rs 6 billion, while fixed assets fell 2% and stood at Rs 157 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 6 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 55%.

BARODA RAYON Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	250	2,977	1,091.4
Current Liabilities	Rs m	1,648	1,655	0.4
Long-term Debt	Rs m	2,252	1,801	-20.0
Total Liabilities	Rs m	4,150	6,433	55.0
Current assets	Rs m	3,990	6,276	57.3
Fixed Assets	Rs m	161	157	-2.1
Total Assets	Rs m	4,150	6,433	55.0

BARODA RAYON Cash Flow Statement Analysis

• BARODA RAYON's cash flow from operating activities (CFO) during FY23 stood at Rs 390 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 246 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -566 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 70 million from the Rs 13 million net cash flows seen during FY22.

BARODA RAYON 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	-850	390	-
Cash Flow from Investing Activities	Rs m	399	246	-38.2%
Cash Flow from Financing Activities	Rs m	464	-566	-
Net Cash Flow	Rs m	13	70	457.6%

Current Valuations for BARODA RAYON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 119.0, an decline from the EPS of Rs 163.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 205.4, stands at 1.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 8.1 times.
• The company's price to cash flow (P/CF) ratio stood at 2.1 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	25.5
TTM Earnings per share	Rs	163.5	119.0
Diluted earnings per share	Rs	163.5	119.0
Price to Cash Flow	x	0.0	2.1
TTM P/E ratio	x	0.0	1.7
Price / Book Value ratio	x	0.0	1.9
Market Cap	Rs m	0	5,793
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BARODA RAYON

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.8x during FY23, from 2.4x 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 41.6x during FY23, from 62.1x 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 declined and down at 91.6% during FY23, from 1,498.9% 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 58.5% during FY23, from 152.2% 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 43.4% during FY23, from 91.7% 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	2.4	3.8
Debtors’ Days	Days	0	1,156
Interest coverage	x	62.1	41.6
Debt to equity ratio	x	9.0	0.6
Return on assets	%	91.7	43.4
Return on equity	%	1,498.9	91.6
Return on capital employed	%	152.2	58.5

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

BARODA RAYON Share Price Performance

Over the last one year, BARODA RAYON share price has moved down from Rs 339.5 to Rs 205.4, registering a loss of Rs 134.1 or around 39.5%.

Overall, the S&P BSE SENSEX is up 6.7% over the year.

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