RALLIS 2023-24 Annual Report Analysis

Fri, 31 May

RALLIS 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.

RALLIS Income Statement Analysis

• Operating income during the year fell 10.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.8% in FY24 as against 7.4% in FY23.
• Depreciation charges increased by 24.9% and finance costs increased by 37.6% YoY, respectively.
• Other income grew by 22.7% YoY.
• Net profit for the year grew by 60.8% YoY.
• Net profit margins during the year grew from 3.1% in FY23 to 5.6% in FY24.

RALLIS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	29,670	26,484	-10.7%
Other income	Rs m	127	156	22.7%
Total Revenues	Rs m	29,797	26,640	-10.6%
Gross profit	Rs m	2,205	3,131	42.0%
Depreciation	Rs m	914	1,141	24.9%
Interest	Rs m	138	190	37.6%
Profit before tax	Rs m	1,281	1,957	52.8%
Tax	Rs m	361	478	32.3%
Profit after tax	Rs m	919	1,479	60.8%
Gross profit margin	%	7.4	11.8
Effective tax rate	%	28.2	24.4
Net profit margin	%	3.1	5.6

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RALLIS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 13 billion as compared to Rs 13 billion in FY23, thereby witnessing an increase of 3.4%.
• Long-term debt down at Rs 11 million as compared to Rs 27 million during FY23, a fall of 59.4%.
• Current assets rose 8% and stood at Rs 21 billion, while fixed assets rose 7% and stood at Rs 18 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 39 billion as against Rs 36 billion during FY23, thereby witnessing a growth of 7%.

RALLIS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	17,301	18,295	5.7
Current Liabilities	Rs m	12,894	13,335	3.4
Long-term Debt	Rs m	27	11	-59.4
Total Liabilities	Rs m	35,867	38,521	7.4
Current assets	Rs m	19,409	20,929	7.8
Fixed Assets	Rs m	16,417	17,566	7.0
Total Assets	Rs m	35,867	38,521	7.4

RALLIS Cash Flow Statement Analysis

• RALLIS's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 24.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 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 -175 million from the Rs 337 million net cash flows seen during FY23.

RALLIS 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	2,168	2,691	24.1%
Cash Flow from Investing Activities	Rs m	-1,421	-1,023	-
Cash Flow from Financing Activities	Rs m	-410	-1,843	-
Net Cash Flow	Rs m	337	-175	-

Current Valuations for RALLIS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.6, an improvement from the EPS of Rs 4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 258.1, stands at 33.9 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 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 17.8 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	152.6	136.2
TTM Earnings per share	Rs	4.7	7.6
Diluted earnings per share	Rs	4.7	7.6
Price to Cash Flow	x	20.5	17.8
TTM P/E ratio	x	40.8	33.9
Price / Book Value ratio	x	2.7	2.6
Market Cap	Rs m	45,866	46,746
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for RALLIS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.5x 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 11.3x during FY24, from 10.3x 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 8.1% during FY24, from 5.3% 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 improved and stood at 11.7% during FY24, from 8.2% 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 4.3% during FY24, from 2.9% 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	1.5	1.6
Debtors’ Days	Days	6	8
Interest coverage	x	10.3	11.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.9	4.3
Return on equity	%	5.3	8.1
Return on capital employed	%	8.2	11.7

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

RALLIS Share Price Performance

Over the last one year, RALLIS share price has moved up from Rs 189.6 to Rs 258.1, registering a gain of Rs 68.6 or around 36.2%.

Overall, the S&P BSE SENSEX is up 18.4% over the year.

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