RAJNISH WELLNESS 2022-23 Annual Report Analysis

Mon, 19 Feb

RAJNISH WELLNESS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

RAJNISH WELLNESS Income Statement Analysis

• Operating income during the year fell 2.3% 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 4.3% in FY23 as against 0.4% in FY22.
• Depreciation charges increased by 116.7% and finance costs decreased by 87.0% YoY, respectively.
• Other income grew by 91.5% YoY.
• Net profit for the year grew by 17.3% YoY.
• Net profit margins during the year grew from 1.5% in FY22 to 1.8% in FY23.

RAJNISH WELLNESS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	264	258	-2.3%
Other income	Rs m	9	18	91.5%
Total Revenues	Rs m	274	276	0.9%
Gross profit	Rs m	-1	-11	NA
Depreciation	Rs m	0	0	116.7%
Interest	Rs m	3	0	-87.0%
Profit before tax	Rs m	5	6	15.1%
Tax	Rs m	2	2	9.6%
Profit after tax	Rs m	4	5	17.3%
Gross profit margin	%	-0.4	-4.3
Effective tax rate	%	28.6	27.2
Net profit margin	%	1.5	1.8

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

RAJNISH WELLNESS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 105 million as compared to Rs 59 million in FY22, thereby witnessing an increase of 78.3%.
• Long-term debt down at Rs 54 million as compared to Rs 71 million during FY22, a fall of 23.9%.
• Current assets rose 10% and stood at Rs 377 million, while fixed assets rose 8,394% and stood at Rs 612 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 989 million as against Rs 351 million during FY22, thereby witnessing a growth of 182%.

RAJNISH WELLNESS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	221	830	275.1
Current Liabilities	Rs m	59	105	78.3
Long-term Debt	Rs m	71	54	-23.9
Total Liabilities	Rs m	351	989	181.9
Current assets	Rs m	343	377	9.8
Fixed Assets	Rs m	7	612	8,394.3
Total Assets	Rs m	351	989	181.9

RAJNISH WELLNESS Cash Flow Statement Analysis

• RAJNISH WELLNESS's cash flow from operating activities (CFO) during FY23 stood at Rs -621 million, an improvement of 517,258.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 0 million, an improvement of 6.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 615 million, an improvement of 7,790% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -6 million from the Rs 7 million net cash flows seen during FY22.

RAJNISH WELLNESS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	0	-621	-
Cash Flow from Investing Activities	Rs m	0	0	-
Cash Flow from Financing Activities	Rs m	8	615	7,790.0%
Net Cash Flow	Rs m	7	-6	-

Current Valuations for RAJNISH WELLNESS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an decline from the EPS of Rs 0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 16.6, stands at 23,623.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.4 times, while the price to sales ratio stands at 49.4 times.
• The company's price to cash flow (P/CF) ratio stood at 2,825.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	25.1	0.3
TTM Earnings per share	Rs	0.4	0.0
Diluted earnings per share	Rs	0.0	0.0
Price to Cash Flow	x	1,078.8	2,825.6
TTM P/E ratio	x	1,095.9	23,623.5
Price / Book Value ratio	x	0.3	16.1
Market Cap	Rs m	64	13,351
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RAJNISH WELLNESS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.6x during FY23, from 5.8x during FY22. 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 18.1x during FY23, from 2.9x during FY22. 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 0.6% during FY23, from 1.8% during FY23. 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 0.8% during FY23, from 2.9% during FY22. 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 0.5% during FY23, from 1.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	5.8	3.6
Debtors’ Days	Days	2,237	2,853
Interest coverage	x	2.9	18.1
Debt to equity ratio	x	0.3	0.1
Return on assets	%	1.9	0.5
Return on equity	%	1.8	0.6
Return on capital employed	%	2.9	0.8

To see how RAJNISH WELLNESS has performed over the last 5 years, please visit here.

RAJNISH WELLNESS Share Price Performance

Over the last one year, RAJNISH WELLNESS share price has moved up from Rs 5.6 to Rs 16.6, registering a gain of Rs 11.0 or around 197.0%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for RAJNISH WELLNESS and quarterly results for RAJNISH WELLNESS)