RPSG VENTURES 2023-24 Annual Report Analysis

Wed, 31 Jul

RPSG VENTURES 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.

RPSG VENTURES Income Statement Analysis

• Operating income during the year rose 11.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 49.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.7% in FY24 as against 11.7% in FY23.
• Depreciation charges decreased by 1.2% and finance costs increased by 13.6% YoY, respectively.
• Other income declined by 60.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.8% in FY23 to 2.5% in FY24.

RPSG VENTURES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	71,662	79,509	11.0%
Other income	Rs m	1,418	556	-60.8%
Total Revenues	Rs m	73,080	80,066	9.6%
Gross profit	Rs m	8,355	12,498	49.6%
Depreciation	Rs m	3,053	3,018	-1.2%
Interest	Rs m	5,517	6,268	13.6%
Profit before tax	Rs m	1,202	3,768	213.4%
Tax	Rs m	1,793	1,798	0.3%
Profit after tax	Rs m	-590	1,970	NA
Gross profit margin	%	11.7	15.7
Effective tax rate	%	149.1	47.7
Net profit margin	%	-0.8	2.5

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RPSG VENTURES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 44 billion as compared to Rs 38 billion in FY23, thereby witnessing an increase of 14.4%.
• Long-term debt down at Rs 9 billion as compared to Rs 9 billion during FY23, a fall of 0.2%.
• Current assets rose 23% and stood at Rs 27 billion, while fixed assets rose 3% and stood at Rs 109 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 137 billion as against Rs 129 billion during FY23, thereby witnessing a growth of 6%.

RPSG VENTURES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	23,704	26,418	11.4
Current Liabilities	Rs m	38,056	43,545	14.4
Long-term Debt	Rs m	8,752	8,733	-0.2
Total Liabilities	Rs m	128,638	136,830	6.4
Current assets	Rs m	22,307	27,399	22.8
Fixed Assets	Rs m	106,332	109,432	2.9
Total Assets	Rs m	128,638	136,830	6.4

RPSG VENTURES Cash Flow Statement Analysis

• RPSG VENTURES's cash flow from operating activities (CFO) during FY24 stood at Rs 10 billion, an improvement of 43.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -11 billion, an improvement of 58.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion, an improvement of 15% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 3 billion net cash flows seen during FY23.

RPSG VENTURES 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	7,256	10,377	43.0%
Cash Flow from Investing Activities	Rs m	-7,174	-11,364	-
Cash Flow from Financing Activities	Rs m	2,523	2,908	15.3%
Net Cash Flow	Rs m	2,587	1,918	-25.9%

Current Valuations for RPSG VENTURES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 59.5, an improvement from the EPS of Rs -20.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 812.5, stands at 13.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 4.0 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	2,428.4	2,402.8
TTM Earnings per share	Rs	-20.0	59.5
Diluted earnings per share	Rs	-17.8	59.5
Price to Cash Flow	x	4.9	4.0
TTM P/E ratio	x	-13.2	13.6
Price / Book Value ratio	x	0.7	0.8
Market Cap	Rs m	15,415	20,076
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RPSG VENTURES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY24, from 0.6x 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 improved and stood at 1.6x during FY24, from 1.2x 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 improved and stood at 7.5% during FY24, from -2.5% 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 improved and stood at 28.6% during FY24, from 20.7% 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 improved and stood at 6.0% during FY24, from 3.8% 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	0.6	0.6
Debtors’ Days	Days	6	6
Interest coverage	x	1.2	1.6
Debt to equity ratio	x	0.4	0.3
Return on assets	%	3.8	6.0
Return on equity	%	-2.5	7.5
Return on capital employed	%	20.7	28.6

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

RPSG VENTURES Share Price Performance

Over the last one year, RPSG VENTURES share price has moved up from Rs 524.1 to Rs 812.5, registering a gain of Rs 288.5 or around 55.0%.

Overall, the S&P BSE SENSEX is up 22.8% over the year.

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