ORIENTAL RAIL INFRASTRUCTURE 2023-24 Annual Report Analysis

Tue, 24 Sep

ORIENTAL RAIL INFRASTRUCTURE 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.

ORIENTAL RAIL INFRASTRUCTURE Income Statement Analysis

• Operating income during the year rose 61.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 166.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.7% in FY24 as against 7.7% in FY23.
• Depreciation charges increased by 17.4% and finance costs increased by 37.1% YoY, respectively.
• Other income grew by 30.7% YoY.
• Net profit for the year grew by 841.6% YoY.
• Net profit margins during the year grew from 1.0% in FY23 to 5.7% in FY24.

ORIENTAL RAIL INFRASTRUCTURE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,251	5,262	61.8%
Other income	Rs m	21	27	30.7%
Total Revenues	Rs m	3,272	5,289	61.6%
Gross profit	Rs m	251	667	166.1%
Depreciation	Rs m	68	80	17.4%
Interest	Rs m	160	220	37.1%
Profit before tax	Rs m	43	394	819.2%
Tax	Rs m	11	94	754.4%
Profit after tax	Rs m	32	300	841.6%
Gross profit margin	%	7.7	12.7
Effective tax rate	%	25.7	23.9
Net profit margin	%	1.0	5.7

Don't Miss: Key Information for Long-term Investors

ORIENTAL RAIL INFRASTRUCTURE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 3.6%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY23, a fall of 16.1%.
• Current assets rose 56% and stood at Rs 5 billion, while fixed assets fell 6% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 35%.

ORIENTAL RAIL INFRASTRUCTURE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,077	2,654	146.4
Current Liabilities	Rs m	2,320	2,404	3.6
Long-term Debt	Rs m	1,335	1,121	-16.1
Total Liabilities	Rs m	4,776	6,463	35.3
Current assets	Rs m	3,190	4,973	55.9
Fixed Assets	Rs m	1,587	1,490	-6.1
Total Assets	Rs m	4,776	6,463	35.3

ORIENTAL RAIL INFRASTRUCTURE Cash Flow Statement Analysis

• ORIENTAL RAIL INFRASTRUCTURE's cash flow from operating activities (CFO) during FY24 stood at Rs 58 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -37 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 976 million, an improvement of 39% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 997 million from the Rs 24 million net cash flows seen during FY23.

ORIENTAL RAIL INFRASTRUCTURE 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	-440	58	-
Cash Flow from Investing Activities	Rs m	-240	-37	-
Cash Flow from Financing Activities	Rs m	703	976	38.9%
Net Cash Flow	Rs m	24	997	4,063.8%

Current Valuations for ORIENTAL RAIL INFRASTRUCTURE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.9, an improvement from the EPS of Rs 0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 288.6, stands at 58.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at 27.1 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	60.3	85.6
TTM Earnings per share	Rs	0.6	4.9
Diluted earnings per share	Rs	0.5	4.9
Price to Cash Flow	x	24.1	27.1
TTM P/E ratio	x	75.6	58.3
Price / Book Value ratio	x	4.5	3.9
Market Cap	Rs m	4,862	10,322
Dividends per share (Unadj.)	Rs	0.0	0.1

Ratio Analysis for ORIENTAL RAIL INFRASTRUCTURE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 1.4x 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 2.8x during FY24, from 1.3x 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 11.3% during FY24, from 3.0% 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 16.3% during FY24, from 8.4% 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 8.0% during FY24, from 4.0% 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	1.4	2.1
Debtors’ Days	Days	784	912
Interest coverage	x	1.3	2.8
Debt to equity ratio	x	1.2	0.4
Return on assets	%	4.0	8.0
Return on equity	%	3.0	11.3
Return on capital employed	%	8.4	16.3

To see how ORIENTAL RAIL INFRASTRUCTURE has performed over the last 5 years, please visit here.

ORIENTAL RAIL INFRASTRUCTURE Share Price Performance

Over the last one year, ORIENTAL RAIL INFRASTRUCTURE share price has moved up from Rs 82.8 to Rs 288.6, registering a gain of Rs 205.8 or around 248.4%.

Overall, the S&P BSE SENSEX is up 27.3% over the year.

(To know more, check out historical annual results for ORIENTAL RAIL INFRASTRUCTURE and quarterly results for ORIENTAL RAIL INFRASTRUCTURE)