RAJAPALAYAM MILLS 2023-24 Annual Report Analysis

Mon, 12 Aug

RAJAPALAYAM MILLS 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.

RAJAPALAYAM MILLS Income Statement Analysis

• Operating income during the year fell 0.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 15.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.1% in FY24 as against 16.6% in FY23.
• Depreciation charges increased by 18.9% and finance costs increased by 34.5% YoY, respectively.
• Other income declined by 1.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 3.8% in FY23 to 1.1% in FY24.

RAJAPALAYAM MILLS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,379	8,313	-0.8%
Other income	Rs m	102	100	-1.6%
Total Revenues	Rs m	8,481	8,413	-0.8%
Gross profit	Rs m	1,392	1,173	-15.7%
Depreciation	Rs m	566	673	18.9%
Interest	Rs m	551	740	34.5%
Profit before tax	Rs m	377	-140	NA
Tax	Rs m	59	-49	NA
Profit after tax	Rs m	318	-92	NA
Gross profit margin	%	16.6	14.1
Effective tax rate	%	15.7	34.6
Net profit margin	%	3.8	-1.1

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RAJAPALAYAM MILLS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 7 billion as compared to Rs 7 billion in FY23, thereby witnessing an decrease of -4.1%.
• Long-term debt stood at Rs 5 billion as compared to Rs 5 billion during FY23, a growth of 3.1%.
• Current assets fell 7% and stood at Rs 5 billion, while fixed assets rose 3% and stood at Rs 30 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 35 billion as against Rs 35 billion during FY23, thereby witnessing a growth of 1%.

RAJAPALAYAM MILLS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	22,417	23,016	2.7
Current Liabilities	Rs m	6,968	6,680	-4.1
Long-term Debt	Rs m	4,811	4,962	3.1
Total Liabilities	Rs m	34,733	35,163	1.2
Current assets	Rs m	5,870	5,444	-7.3
Fixed Assets	Rs m	28,863	29,719	3.0
Total Assets	Rs m	34,733	35,163	1.2

RAJAPALAYAM MILLS Cash Flow Statement Analysis

• RAJAPALAYAM MILLS'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 -463 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 million from the Rs -4 million net cash flows seen during FY23.

RAJAPALAYAM MILLS 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	-456	1,485	-
Cash Flow from Investing Activities	Rs m	-3,035	-463	-
Cash Flow from Financing Activities	Rs m	3,488	-1,023	-
Net Cash Flow	Rs m	-4	-1	-

Current Valuations for RAJAPALAYAM MILLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -10.0, an decline from the EPS of Rs 34.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,000.0, stands at -25.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 13.6 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	910.8	903.6
TTM Earnings per share	Rs	34.5	-10.0
Diluted earnings per share	Rs	34.4	-10.0
Price to Cash Flow	x	5.9	13.6
TTM P/E ratio	x	16.3	-25.9
Price / Book Value ratio	x	0.3	0.3
Market Cap	Rs m	7,230	7,906
Dividends per share (Unadj.)	Rs	1.0	0.6

Ratio Analysis for RAJAPALAYAM MILLS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY24, from 0.8x 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 1.7x 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 -0.4% during FY24, from 1.4% 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 2.1% during FY24, from 3.4% 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 1.8% during FY24, from 2.5% 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	0.8	0.8
Debtors’ Days	Days	693	736
Interest coverage	x	1.7	0.8
Debt to equity ratio	x	0.2	0.2
Return on assets	%	2.5	1.8
Return on equity	%	1.4	-0.4
Return on capital employed	%	3.4	2.1

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

RAJAPALAYAM MILLS Share Price Performance

Over the last one year, RAJAPALAYAM MILLS share price has moved up from Rs 739.1 to Rs 1,000.0, registering a gain of Rs 260.9 or around 35.3%.

Overall, the S&P BSE SENSEX is up 21.4% over the year.

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