RAMKY INFRASTRUCTURE 2023-24 Annual Report Analysis

Mon, 9 Sep

RAMKY INFRASTRUCTURE 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.

RAMKY INFRASTRUCTURE Income Statement Analysis

• Operating income during the year rose 26.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 68.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.6% in FY24 as against 95.7% in FY23.
• Depreciation charges increased by 15.8% and finance costs decreased by 56.3% YoY, respectively.
• Other income declined by 0.8% YoY.
• Net profit for the year declined by 72.1% YoY.
• Net profit margins during the year declined from 67.6% in FY23 to 14.9% in FY24.

RAMKY INFRASTRUCTURE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	17,051	21,605	26.7%
Other income	Rs m	1,614	1,602	-0.8%
Total Revenues	Rs m	18,666	23,207	24.3%
Gross profit	Rs m	16,325	5,101	-68.8%
Depreciation	Rs m	418	484	15.8%
Interest	Rs m	3,629	1,585	-56.3%
Profit before tax	Rs m	13,892	4,634	-66.6%
Tax	Rs m	2,365	1,424	-39.8%
Profit after tax	Rs m	11,526	3,211	-72.1%
Gross profit margin	%	95.7	23.6
Effective tax rate	%	17.0	30.7
Net profit margin	%	67.6	14.9

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

RAMKY INFRASTRUCTURE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 13 billion as compared to Rs 26 billion in FY23, thereby witnessing an decrease of -47.7%.
• Long-term debt stood at Rs 6 billion as compared to Rs 4 billion during FY23, a growth of 57.4%.
• Current assets fell 34% and stood at Rs 15 billion, while fixed assets fell 12% and stood at Rs 20 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 42 billion as against Rs 45 billion during FY23, thereby witnessing a fall of 7%.

RAMKY INFRASTRUCTURE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	14,117	17,122	21.3
Current Liabilities	Rs m	25,621	13,392	-47.7
Long-term Debt	Rs m	3,685	5,801	57.4
Total Liabilities	Rs m	45,353	41,990	-7.4
Current assets	Rs m	22,618	15,010	-33.6
Fixed Assets	Rs m	22,736	20,097	-11.6
Total Assets	Rs m	45,353	41,990	-7.4

RAMKY INFRASTRUCTURE Cash Flow Statement Analysis

• RAMKY INFRASTRUCTURE's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -719 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -10 billion, an improvement of 39% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -7 billion from the Rs 7 billion net cash flows seen during FY23.

RAMKY INFRASTRUCTURE 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	26,105	3,702	-85.8%
Cash Flow from Investing Activities	Rs m	-2,154	-719	-
Cash Flow from Financing Activities	Rs m	-16,498	-10,106	-
Net Cash Flow	Rs m	7,454	-7,124	-

Current Valuations for RAMKY INFRASTRUCTURE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 46.4, an decline from the EPS of Rs 166.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 694.0, stands at 16.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 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	246.4	312.2
TTM Earnings per share	Rs	166.6	46.4
Diluted earnings per share	Rs	166.6	46.4
Price to Cash Flow	x	1.7	12.2
TTM P/E ratio	x	1.8	16.7
Price / Book Value ratio	x	1.2	2.6
Market Cap	Rs m	16,621	45,020
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RAMKY INFRASTRUCTURE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY24, from 0.9x 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 3.9x during FY24, from 4.8x 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 18.8% during FY24, from 81.6% 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 27.1% during FY24, from 98.4% 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 11.4% during FY24, from 33.4% 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	0.9	1.1
Debtors’ Days	Days	81	70
Interest coverage	x	4.8	3.9
Debt to equity ratio	x	0.3	0.3
Return on assets	%	33.4	11.4
Return on equity	%	81.6	18.8
Return on capital employed	%	98.4	27.1

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

RAMKY INFRASTRUCTURE Share Price Performance

Over the last one year, RAMKY INFRASTRUCTURE share price has moved up from Rs 550.1 to Rs 694.0, registering a gain of Rs 143.9 or around 26.2%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,042.8 (down 0.3%). Over the last one year it has moved up from 4,732.6 to 8,042.8, a gain of 3,310 points (up 69.9%).

Overall, the S&P BSE SENSEX is up 23.7% over the year.

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