RAM RAT.WIRE 2023-24 Annual Report Analysis

Mon, 12 Aug

RAM RAT.WIRE 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.

RAM RAT.WIRE Income Statement Analysis

• Operating income during the year rose 12.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.0% in FY24 as against 4.1% in FY23.
• Depreciation charges increased by 6.6% and finance costs increased by 21.3% YoY, respectively.
• Other income grew by 116.9% YoY.
• Net profit for the year grew by 16.2% YoY.
• Net profit margins during the year grew from 1.8% in FY23 to 1.8% in FY24.

RAM RAT.WIRE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	26,496	29,832	12.6%
Other income	Rs m	71	155	116.9%
Total Revenues	Rs m	26,567	29,987	12.9%
Gross profit	Rs m	1,092	1,195	9.4%
Depreciation	Rs m	185	197	6.6%
Interest	Rs m	335	406	21.3%
Profit before tax	Rs m	644	746	15.9%
Tax	Rs m	174	200	15.0%
Profit after tax	Rs m	470	546	16.2%
Gross profit margin	%	4.1	4.0
Effective tax rate	%	27.0	26.8
Net profit margin	%	1.8	1.8

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RAM RAT.WIRE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 4.5%.
• Long-term debt stood at Rs 1 billion as compared to Rs 964 million during FY23, a growth of 6.2%.
• Current assets rose 11% and stood at Rs 6 billion, while fixed assets rose 27% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 15%.

RAM RAT.WIRE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,116	4,097	31.5
Current Liabilities	Rs m	3,835	4,008	4.5
Long-term Debt	Rs m	964	1,024	6.2
Total Liabilities	Rs m	8,287	9,535	15.1
Current assets	Rs m	5,759	6,420	11.5
Fixed Assets	Rs m	2,417	3,070	27.1
Total Assets	Rs m	8,287	9,535	15.1

RAM RAT.WIRE Cash Flow Statement Analysis

• RAM RAT.WIRE's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 113.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -56 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 255 million from the Rs -11 million net cash flows seen during FY23.

RAM RAT.WIRE 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	647	1,384	113.8%
Cash Flow from Investing Activities	Rs m	-204	-56	-
Cash Flow from Financing Activities	Rs m	-454	-1,072	-
Net Cash Flow	Rs m	-11	255	-

Current Valuations for RAM RAT.WIRE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.4, an improvement from the EPS of Rs 10.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 446.0, stands at 31.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 15.0 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	602.2	678.0
TTM Earnings per share	Rs	10.7	12.4
Diluted earnings per share	Rs	10.7	12.4
Price to Cash Flow	x	10.6	15.0
TTM P/E ratio	x	14.9	31.9
Price / Book Value ratio	x	2.4	2.7
Market Cap	Rs m	7,328	11,113
Dividends per share (Unadj.)	Rs	2.5	5.0

Ratio Analysis for RAM RAT.WIRE

• 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 deteriorated and stood at 2.8x during FY24, from 2.9x 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 13.3% during FY24, from 15.1% 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 22.5% during FY24, from 24.0% 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 10.0% during FY24, from 9.7% 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	1.5	1.6
Debtors’ Days	Days	470	395
Interest coverage	x	2.9	2.8
Debt to equity ratio	x	0.3	0.2
Return on assets	%	9.7	10.0
Return on equity	%	15.1	13.3
Return on capital employed	%	24.0	22.5

To see how RAM RAT.WIRE has performed over the last 5 years, please visit here.

RAM RAT.WIRE Share Price Performance

Over the last one year, RAM RAT.WIRE share price has moved up from Rs 301.7 to Rs 446.0, registering a gain of Rs 144.3 or around 47.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 31,193.8 (up 0.5%). Over the last one year it has moved up from 21,877.8 to 31,193.8, a gain of 9,316 points (up 42.6%).

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

(To know more, check out historical annual results for RAM RAT.WIRE and quarterly results for RAM RAT.WIRE)