RADIANT CASH MANAGEMENT 2023-24 Annual Report Analysis

Mon, 19 Aug

RADIANT CASH MANAGEMENT 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.

RADIANT CASH MANAGEMENT Income Statement Analysis

• Operating income during the year rose 8.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 22.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.2% in FY24 as against 29.6% in FY23.
• Depreciation charges increased by 49.3% and finance costs increased by 6.4% YoY, respectively.
• Other income grew by 123.1% YoY.
• Net profit for the year declined by 29.1% YoY.
• Net profit margins during the year declined from 17.7% in FY23 to 11.5% in FY24.

RADIANT CASH MANAGEMENT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,549	3,863	8.9%
Other income	Rs m	26	57	123.1%
Total Revenues	Rs m	3,575	3,921	9.7%
Gross profit	Rs m	1,052	817	-22.3%
Depreciation	Rs m	45	67	49.3%
Interest	Rs m	190	202	6.4%
Profit before tax	Rs m	843	606	-28.1%
Tax	Rs m	216	162	-25.1%
Profit after tax	Rs m	627	445	-29.1%
Gross profit margin	%	29.6	21.2
Effective tax rate	%	25.6	26.7
Net profit margin	%	17.7	11.5

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

RADIANT CASH MANAGEMENT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 555 million as compared to Rs 480 million in FY23, thereby witnessing an increase of 15.6%.
• Long-term debt down at Rs 0 million as compared to Rs 9 million during FY23, a fall of 98.1%.
• Current assets rose 1% and stood at Rs 3 billion, while fixed assets rose 122% and stood at Rs 550 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 12%.

RADIANT CASH MANAGEMENT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,299	2,530	10.0
Current Liabilities	Rs m	480	555	15.6
Long-term Debt	Rs m	9	0	-98.1
Total Liabilities	Rs m	2,774	3,106	11.9
Current assets	Rs m	2,527	2,556	1.2
Fixed Assets	Rs m	248	550	122.0
Total Assets	Rs m	2,774	3,106	11.9

RADIANT CASH MANAGEMENT Cash Flow Statement Analysis

• RADIANT CASH MANAGEMENT's cash flow from operating activities (CFO) during FY24 stood at Rs 406 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 80 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -204 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 285 million from the Rs 269 million net cash flows seen during FY23.

RADIANT CASH MANAGEMENT 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	742	406	-45.3%
Cash Flow from Investing Activities	Rs m	-737	80	-
Cash Flow from Financing Activities	Rs m	264	-204	-
Net Cash Flow	Rs m	269	285	5.9%

Current Valuations for RADIANT CASH MANAGEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.2, an decline from the EPS of Rs 5.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 84.1, stands at 21.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 19.6 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	33.3	36.2
TTM Earnings per share	Rs	5.9	4.2
Diluted earnings per share	Rs	5.9	4.2
Price to Cash Flow	x	15.3	19.6
TTM P/E ratio	x	16.4	21.9
Price / Book Value ratio	x	4.7	4.0
Market Cap	Rs m	10,826	10,031
Dividends per share (Unadj.)	Rs	3.0	2.5

Ratio Analysis for RADIANT CASH MANAGEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.6x during FY24, from 5.3x 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 4.0x during FY24, from 5.4x 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 17.6% during FY24, from 27.3% 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 31.9% during FY24, from 44.8% 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 declined and down at 20.8% during FY24, from 29.5% 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	5.3	4.6
Debtors’ Days	Days	72	73
Interest coverage	x	5.4	4.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	29.5	20.8
Return on equity	%	27.3	17.6
Return on capital employed	%	44.8	31.9

To see how RADIANT CASH MANAGEMENT has performed over the last 5 years, please visit here.

RADIANT CASH MANAGEMENT Share Price Performance

Over the last one year, RADIANT CASH MANAGEMENT share price has moved down from Rs 97.2 to Rs 84.1, registering a loss of Rs 13.1 or around 13.5%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for RADIANT CASH MANAGEMENT and quarterly results for RADIANT CASH MANAGEMENT)