INDO RAMA SYN 2023-24 Annual Report Analysis

Wed, 16 Oct

INDO RAMA SYN 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.

INDO RAMA SYN Income Statement Analysis

• Operating income during the year fell 5.2% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.3% in FY24 as against 0.7% in FY23.
• Depreciation charges increased by 24.8% and finance costs increased by 120.9% YoY, respectively.
• Other income declined by 56.2% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 0.6% in FY23 to 5.3% in FY24.

INDO RAMA SYN Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	40,849	38,733	-5.2%
Other income	Rs m	381	167	-56.2%
Total Revenues	Rs m	41,230	38,900	-5.7%
Gross profit	Rs m	281	-494	NA
Depreciation	Rs m	313	391	24.8%
Interest	Rs m	596	1,316	120.9%
Profit before tax	Rs m	-247	-2,034	NA
Tax	Rs m	-2	0	NA
Profit after tax	Rs m	-246	-2,034	NA
Gross profit margin	%	0.7	-1.3
Effective tax rate	%	0.6	0.0
Net profit margin	%	-0.6	-5.3

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INDO RAMA SYN Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 21 billion as compared to Rs 15 billion in FY23, thereby witnessing an increase of 39.0%.
• Long-term debt down at Rs 4 billion as compared to Rs 6 billion during FY23, a fall of 34.8%.
• Current assets fell 1% and stood at Rs 13 billion, while fixed assets rose 18% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 27 billion as against Rs 25 billion during FY23, thereby witnessing a growth of 8%.

INDO RAMA SYN Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,727	3,681	-35.7
Current Liabilities	Rs m	15,158	21,069	39.0
Long-term Debt	Rs m	5,603	3,654	-34.8
Total Liabilities	Rs m	24,959	26,898	7.8
Current assets	Rs m	12,956	12,785	-1.3
Fixed Assets	Rs m	12,003	14,113	17.6
Total Assets	Rs m	24,959	26,898	7.8

INDO RAMA SYN Cash Flow Statement Analysis

• INDO RAMA SYN's cash flow from operating activities (CFO) during FY24 stood at Rs -967 million, an improvement of 19.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -324 million from the Rs 503 million net cash flows seen during FY23.

INDO RAMA SYN 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	-810	-967	-
Cash Flow from Investing Activities	Rs m	-3,476	-2,578	-
Cash Flow from Financing Activities	Rs m	4,789	3,222	-32.7%
Net Cash Flow	Rs m	503	-324	-

Current Valuations for INDO RAMA SYN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.8, an decline from the EPS of Rs -0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 48.0, stands at -7.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at -8.3 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	156.4	148.3
TTM Earnings per share	Rs	-0.9	-7.8
Diluted earnings per share	Rs	-0.9	-7.8
Price to Cash Flow	x	150.5	-8.3
TTM P/E ratio	x	-41.5	-7.5
Price / Book Value ratio	x	2.8	3.7
Market Cap	Rs m	16,039	13,647
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INDO RAMA SYN

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x 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 deteriorated and stood at -0.5x during FY24, from 0.6x 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 declined and down at -55.3% during FY24, from -4.3% 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 -9.8% during FY24, from 3.1% 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 -2.7% during FY24, from 1.4% 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	0.6
Debtors’ Days	Days	1	2
Interest coverage	x	0.6	-0.5
Debt to equity ratio	x	1.0	1.0
Return on assets	%	1.4	-2.7
Return on equity	%	-4.3	-55.3
Return on capital employed	%	3.1	-9.8

To see how INDO RAMA SYN has performed over the last 5 years, please visit here.

INDO RAMA SYN Share Price Performance

Over the last one year, INDO RAMA SYN share price has moved down from Rs 52.2 to Rs 48.0, registering a loss of Rs 4.2 or around 8.1%.

Overall, the S&P BSE SENSEX is up 23.2% over the year.

(To know more, check out historical annual results for INDO RAMA SYN and quarterly results for INDO RAMA SYN)