RHI MAGNESITA 2023-24 Annual Report Analysis

Mon, 9 Sep

RHI MAGNESITA 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.

RHI MAGNESITA Income Statement Analysis

• Operating income during the year rose 38.7% 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 5.9% in FY24 as against 11.0% in FY23.
• Depreciation charges increased by 157.4% and finance costs increased by 63.0% YoY, respectively.
• Other income declined by 30.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 17.1% in FY23 to 2.6% in FY24.

RHI MAGNESITA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	27,263	37,811	38.7%
Other income	Rs m	157	110	-30.1%
Total Revenues	Rs m	27,420	37,921	38.3%
Gross profit	Rs m	-3,009	2,215	NA
Depreciation	Rs m	709	1,825	157.4%
Interest	Rs m	402	655	63.0%
Profit before tax	Rs m	-3,963	-155	NA
Tax	Rs m	694	846	22.0%
Profit after tax	Rs m	-4,657	-1,001	NA
Gross profit margin	%	-11.0	5.9
Effective tax rate	%	-17.5	-545.6
Net profit margin	%	-17.1	-2.6

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RHI MAGNESITA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 9 billion as compared to Rs 25 billion in FY23, thereby witnessing an decrease of -64.6%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY23, a fall of 2.0%.
• Current assets fell 14% and stood at Rs 22 billion, while fixed assets fell 9% and stood at Rs 34 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 56 billion as against Rs 63 billion during FY23, thereby witnessing a fall of 11%.

RHI MAGNESITA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	28,910	38,457	33.0
Current Liabilities	Rs m	25,076	8,867	-64.6
Long-term Debt	Rs m	2,419	2,371	-2.0
Total Liabilities	Rs m	63,259	56,272	-11.0
Current assets	Rs m	25,449	22,004	-13.5
Fixed Assets	Rs m	37,810	34,268	-9.4
Total Assets	Rs m	63,259	56,272	-11.0

RHI MAGNESITA Cash Flow Statement Analysis

• RHI MAGNESITA's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 13.6% 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 -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -3 billion from the Rs 3 billion net cash flows seen during FY23.

RHI MAGNESITA 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	2,383	2,706	13.6%
Cash Flow from Investing Activities	Rs m	-11,500	-3,124	-
Cash Flow from Financing Activities	Rs m	11,719	-2,305	-
Net Cash Flow	Rs m	2,602	-2,724	-

Current Valuations for RHI MAGNESITA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.8, an improvement from the EPS of Rs -24.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 585.5, stands at -163.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 167.1 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	145.0	183.1
TTM Earnings per share	Rs	-24.8	-4.8
Diluted earnings per share	Rs	-22.5	-4.8
Price to Cash Flow	x	-32.9	167.1
TTM P/E ratio	x	-27.9	-163.3
Price / Book Value ratio	x	4.4	3.6
Market Cap	Rs m	127,302	137,674
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for RHI MAGNESITA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 1.0x 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 improved and stood at 0.8x during FY24, from -8.9x 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 -2.6% during FY24, from -16.1% 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 1.2% during FY24, from -11.4% 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 -0.6% during FY24, from -6.7% 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	1.0	2.5
Debtors’ Days	Days	1,012	789
Interest coverage	x	-8.9	0.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	-6.7	-0.6
Return on equity	%	-16.1	-2.6
Return on capital employed	%	-11.4	1.2

To see how RHI MAGNESITA has performed over the last 5 years, please visit here.

RHI MAGNESITA Share Price Performance

Over the last one year, RHI MAGNESITA share price has moved down from Rs 768.4 to Rs 585.5, registering a loss of Rs 182.9 or around 23.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 31,098.4 (down 0.7%). Over the last one year it has moved up from 23,312.5 to 31,098.4, a gain of 7,786 points (up 33.4%).

Overall, the S&P BSE SENSEX is up 24.0% over the year.

(To know more, check out historical annual results for RHI MAGNESITA and quarterly results for RHI MAGNESITA)