RAMCO INDUSTRIES 2023-24 Annual Report Analysis

Mon, 29 Jul

RAMCO INDUSTRIES 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.

RAMCO INDUSTRIES Income Statement Analysis

• Operating income during the year rose 3.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.3% in FY24 as against 10.6% in FY23.
• Depreciation charges increased by 9.1% and finance costs increased by 19.3% YoY, respectively.
• Other income declined by 27.8% YoY.
• Net profit for the year declined by 32.2% YoY.
• Net profit margins during the year declined from 7.4% in FY23 to 4.9% in FY24.

RAMCO INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	14,575	15,013	3.0%
Other income	Rs m	216	156	-27.8%
Total Revenues	Rs m	14,791	15,169	2.6%
Gross profit	Rs m	1,549	1,549	0.0%
Depreciation	Rs m	339	370	9.1%
Interest	Rs m	210	250	19.3%
Profit before tax	Rs m	1,217	1,085	-10.8%
Tax	Rs m	141	355	152.8%
Profit after tax	Rs m	1,076	730	-32.2%
Gross profit margin	%	10.6	10.3
Effective tax rate	%	11.6	32.8
Net profit margin	%	7.4	4.9

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RAMCO INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -9.9%.
• Long-term debt down at Rs 113 million as compared to Rs 306 million during FY23, a fall of 63.3%.
• Current assets rose 1% and stood at Rs 8 billion, while fixed assets rose 3% and stood at Rs 38 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 46 billion as against Rs 45 billion during FY23, thereby witnessing a growth of 2%.

RAMCO INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	38,840	40,609	4.6
Current Liabilities	Rs m	4,914	4,427	-9.9
Long-term Debt	Rs m	306	113	-63.3
Total Liabilities	Rs m	44,652	45,752	2.5
Current assets	Rs m	8,112	8,194	1.0
Fixed Assets	Rs m	36,540	37,558	2.8
Total Assets	Rs m	44,652	45,752	2.5

RAMCO INDUSTRIES Cash Flow Statement Analysis

• RAMCO INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -214 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -997 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 136 million from the Rs -168 million net cash flows seen during FY23.

RAMCO INDUSTRIES 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	-433	1,347	-
Cash Flow from Investing Activities	Rs m	-273	-214	-
Cash Flow from Financing Activities	Rs m	538	-997	-
Net Cash Flow	Rs m	-168	136	-

Current Valuations for RAMCO INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.4, an decline from the EPS of Rs 12.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 252.2, stands at 30.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 15.5 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	167.9	172.9
TTM Earnings per share	Rs	12.4	8.4
Diluted earnings per share	Rs	12.4	8.4
Price to Cash Flow	x	7.6	15.5
TTM P/E ratio	x	10.1	30.0
Price / Book Value ratio	x	0.4	0.4
Market Cap	Rs m	15,778	17,067
Dividends per share (Unadj.)	Rs	1.0	0.8

Ratio Analysis for RAMCO INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.7x 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 5.3x during FY24, from 6.8x 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 1.8% during FY24, from 2.8% 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 declined and down at 3.3% during FY24, from 3.6% 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 2.1% 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	1.7	1.9
Debtors’ Days	Days	151	169
Interest coverage	x	6.8	5.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.9	2.1
Return on equity	%	2.8	1.8
Return on capital employed	%	3.6	3.3

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

RAMCO INDUSTRIES Share Price Performance

Over the last one year, RAMCO INDUSTRIES share price has moved up from Rs 181.3 to Rs 252.2, registering a gain of Rs 71.0 or around 39.1%.

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

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