RATTANINDIA ENTERPRISES 2023-24 Annual Report Analysis

Wed, 11 Sep

RATTANINDIA ENTERPRISES 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.

RATTANINDIA ENTERPRISES Income Statement Analysis

• Operating income during the year rose 36.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 0.0% in FY24 as against 5.5% in FY23.
• Depreciation charges increased by 74.7% and finance costs increased by 130.4% YoY, respectively.
• Other income grew by 3936.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 6.9% in FY23 to 7.6% in FY24.

RATTANINDIA ENTERPRISES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	41,238	56,096	36.0%
Other income	Rs m	144	5,821	3,936.2%
Total Revenues	Rs m	41,382	61,917	49.6%
Gross profit	Rs m	-2,287	12	NA
Depreciation	Rs m	99	173	74.7%
Interest	Rs m	493	1,135	130.4%
Profit before tax	Rs m	-2,734	4,525	NA
Tax	Rs m	128	281	119.9%
Profit after tax	Rs m	-2,861	4,245	NA
Gross profit margin	%	-5.5	0.0
Effective tax rate	%	-4.7	6.2
Net profit margin	%	-6.9	7.6

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RATTANINDIA ENTERPRISES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 18 billion as compared to Rs 17 billion in FY23, thereby witnessing an increase of 3.9%.
• Current assets fell 5% and stood at Rs 15 billion, while fixed assets rose 91% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 27 billion as against Rs 22 billion during FY23, thereby witnessing a growth of 23%.

RATTANINDIA ENTERPRISES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,093	8,364	104.4
Current Liabilities	Rs m	17,294	17,968	3.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	21,902	26,889	22.8
Current assets	Rs m	15,482	14,649	-5.4
Fixed Assets	Rs m	6,420	12,240	90.7
Total Assets	Rs m	21,902	26,889	22.8

RATTANINDIA ENTERPRISES Cash Flow Statement Analysis

• RATTANINDIA ENTERPRISES's cash flow from operating activities (CFO) during FY24 stood at Rs -368 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -261 million, an improvement of 4.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 970 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 341 million from the Rs 303 million net cash flows seen during FY23.

RATTANINDIA ENTERPRISES 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	-6,783	-368	-
Cash Flow from Investing Activities	Rs m	-250	-261	-
Cash Flow from Financing Activities	Rs m	7,338	970	-86.8%
Net Cash Flow	Rs m	303	341	12.5%

Current Valuations for RATTANINDIA ENTERPRISES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an improvement from the EPS of Rs -2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 78.3, stands at 9.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.9 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 20.4 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	29.8	40.6
TTM Earnings per share	Rs	-2.1	3.1
Diluted earnings per share	Rs	-2.1	3.1
Price to Cash Flow	x	-17.6	20.4
TTM P/E ratio	x	-17.8	9.9
Price / Book Value ratio	x	15.2	10.8
Market Cap	Rs m	62,340	90,027
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RATTANINDIA ENTERPRISES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY24, from 0.9x 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 5.0x during FY24, from -4.6x 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 50.7% during FY24, from -69.9% 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 67.7% during FY24, from -54.8% 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 20.0% during FY24, from -10.8% 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	0.9	0.8
Debtors’ Days	Days	4	3
Interest coverage	x	-4.6	5.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-10.8	20.0
Return on equity	%	-69.9	50.7
Return on capital employed	%	-54.8	67.7

To see how RATTANINDIA ENTERPRISES has performed over the last 5 years, please visit here.

RATTANINDIA ENTERPRISES Share Price Performance

Over the last one year, RATTANINDIA ENTERPRISES share price has moved up from Rs 62.1 to Rs 78.3, registering a gain of Rs 16.1 or around 25.9%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 8,155.4 (up 0.8%). Over the last one year it has moved up from 4,776.1 to 8,155.4, a gain of 3,379 points (up 70.8%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for RATTANINDIA ENTERPRISES and quarterly results for RATTANINDIA ENTERPRISES)