RANE MADRAS 2023-24 Annual Report Analysis

Tue, 2 Jul

RANE MADRAS 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.

RANE MADRAS Income Statement Analysis

• Operating income during the year fell 4.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 76.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.8% in FY24 as against 7.3% in FY23.
• Depreciation charges decreased by 5.8% and finance costs increased by 64.3% YoY, respectively.
• Other income declined by 74.4% YoY.
• Net profit for the year declined by 89.9% YoY.
• Net profit margins during the year declined from 1.3% in FY23 to 0.1% in FY24.

RANE MADRAS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,544	22,390	-4.9%
Other income	Rs m	179	46	-74.4%
Total Revenues	Rs m	23,723	22,435	-5.4%
Gross profit	Rs m	1,720	411	-76.1%
Depreciation	Rs m	966	910	-5.8%
Interest	Rs m	348	571	64.3%
Profit before tax	Rs m	585	-1,025	NA
Tax	Rs m	284	-1,055	NA
Profit after tax	Rs m	300	30	-89.9%
Gross profit margin	%	7.3	1.8
Effective tax rate	%	48.6	102.9
Net profit margin	%	1.3	0.1

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RANE MADRAS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 8 billion as compared to Rs 8 billion in FY23, thereby witnessing an decrease of -1.2%.
• Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY23, a growth of 7.3%.
• Current assets fell 8% and stood at Rs 7 billion, while fixed assets fell 9% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 13 billion as against Rs 14 billion during FY23, thereby witnessing a fall of 9%.

RANE MADRAS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,417	2,560	5.9
Current Liabilities	Rs m	8,256	8,154	-1.2
Long-term Debt	Rs m	2,444	2,622	7.3
Total Liabilities	Rs m	13,789	12,586	-8.7
Current assets	Rs m	7,639	6,999	-8.4
Fixed Assets	Rs m	6,149	5,587	-9.1
Total Assets	Rs m	13,789	12,586	-8.7

RANE MADRAS Cash Flow Statement Analysis

• RANE MADRAS's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 37.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 12.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -139 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -36 million from the Rs 167 million net cash flows seen during FY23.

RANE MADRAS 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	876	1,201	37.0%
Cash Flow from Investing Activities	Rs m	-1,060	-1,193	-
Cash Flow from Financing Activities	Rs m	351	-139	-
Net Cash Flow	Rs m	167	-36	-

Current Valuations for RANE MADRAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.9, an decline from the EPS of Rs 18.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 907.2, stands at 488.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.8 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 12.1 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	1,447.1	1,376.1
TTM Earnings per share	Rs	18.5	1.9
Diluted earnings per share	Rs	18.5	1.9
Price to Cash Flow	x	5.2	12.1
TTM P/E ratio	x	22.0	488.6
Price / Book Value ratio	x	2.6	4.4
Market Cap	Rs m	6,221	11,345
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RANE MADRAS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x 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 -0.8x during FY24, from 2.7x 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 1.2% during FY24, from 12.4% 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 -8.8% during FY24, from 19.2% 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 4.8% during FY24, from 4.7% 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	0.9
Debtors’ Days	Days	7	6
Interest coverage	x	2.7	-0.8
Debt to equity ratio	x	1.0	1.0
Return on assets	%	4.7	4.8
Return on equity	%	12.4	1.2
Return on capital employed	%	19.2	-8.8

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

RANE MADRAS Share Price Performance

Over the last one year, RANE MADRAS share price has moved up from Rs 729.8 to Rs 907.2, registering a gain of Rs 177.4 or around 24.3%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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