RANE BRAKE 2023-24 Annual Report Analysis

Thu, 27 Jun

RANE BRAKE 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.

RANE BRAKE Income Statement Analysis

• Operating income during the year rose 10.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.2% in FY24 as against 9.4% in FY23.
• Depreciation charges increased by 9.2% and finance costs decreased by 40.0% YoY, respectively.
• Other income declined by 74.1% YoY.
• Net profit for the year grew by 20.4% YoY.
• Net profit margins during the year grew from 5.6% in FY23 to 6.1% in FY24.

RANE BRAKE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,988	6,608	10.4%
Other income	Rs m	83	21	-74.1%
Total Revenues	Rs m	6,071	6,630	9.2%
Gross profit	Rs m	564	742	31.6%
Depreciation	Rs m	200	218	9.2%
Interest	Rs m	1	0	-40.0%
Profit before tax	Rs m	446	544	22.1%
Tax	Rs m	111	142	27.2%
Profit after tax	Rs m	335	403	20.4%
Gross profit margin	%	9.4	11.2
Effective tax rate	%	24.9	26.0
Net profit margin	%	5.6	6.1

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RANE BRAKE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 4.7%.
• Current assets rose 7% and stood at Rs 3 billion, while fixed assets rose 7% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 7%.

RANE BRAKE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,612	2,811	7.6
Current Liabilities	Rs m	1,076	1,126	4.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,742	4,007	7.1
Current assets	Rs m	2,377	2,543	7.0
Fixed Assets	Rs m	1,365	1,464	7.3
Total Assets	Rs m	3,742	4,007	7.1

RANE BRAKE Cash Flow Statement Analysis

• RANE BRAKE's cash flow from operating activities (CFO) during FY24 stood at Rs 293 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -127 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -195 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -29 million from the Rs -143 million net cash flows seen during FY23.

RANE BRAKE 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	493	293	-40.6%
Cash Flow from Investing Activities	Rs m	-480	-127	-
Cash Flow from Financing Activities	Rs m	-156	-195	-
Net Cash Flow	Rs m	-143	-29	-

Current Valuations for RANE BRAKE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 52.1, an improvement from the EPS of Rs 43.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 964.0, stands at 18.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 9.8 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	774.6	854.9
TTM Earnings per share	Rs	43.3	52.1
Diluted earnings per share	Rs	43.3	52.1
Price to Cash Flow	x	9.1	9.8
TTM P/E ratio	x	14.5	18.5
Price / Book Value ratio	x	2.1	2.2
Market Cap	Rs m	5,402	6,105
Dividends per share (Unadj.)	Rs	25.0	30.0

Ratio Analysis for RANE BRAKE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY24, from 2.2x 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 1,815.3x during FY24, from 892.6x 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 14.3% during FY24, from 12.8% 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 19.4% during FY24, from 17.1% 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 improved and stood at 10.1% during FY24, from 9.0% 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	2.2	2.3
Debtors’ Days	Days	7	8
Interest coverage	x	892.6	1,815.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.0	10.1
Return on equity	%	12.8	14.3
Return on capital employed	%	17.1	19.4

To see how RANE BRAKE has performed over the last 5 years, please visit here.

RANE BRAKE Share Price Performance

Over the last one year, RANE BRAKE share price has moved up from Rs 865.0 to Rs 964.0, registering a gain of Rs 99.0 or around 11.4%.

Overall, the S&P BSE SENSEX is up 24.8% over the year.

(To know more, check out historical annual results for RANE BRAKE and quarterly results for RANE BRAKE)