RICO AUTO 2023-24 Annual Report Analysis

Mon, 14 Oct

RICO AUTO 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.

RICO AUTO Income Statement Analysis

• Operating income during the year fell 6.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.2% in FY24 as against 9.6% in FY23.
• Depreciation charges increased by 6.0% and finance costs increased by 7.7% YoY, respectively.
• Other income declined by 23.2% YoY.
• Net profit for the year declined by 23.7% YoY.
• Net profit margins during the year declined from 2.2% in FY23 to 1.8% in FY24.

RICO AUTO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,024	21,597	-6.2%
Other income	Rs m	192	147	-23.2%
Total Revenues	Rs m	23,215	21,745	-6.3%
Gross profit	Rs m	2,203	2,194	-0.4%
Depreciation	Rs m	1,118	1,185	6.0%
Interest	Rs m	541	582	7.7%
Profit before tax	Rs m	736	574	-22.0%
Tax	Rs m	226	185	-18.1%
Profit after tax	Rs m	510	389	-23.7%
Gross profit margin	%	9.6	10.2
Effective tax rate	%	30.7	32.2
Net profit margin	%	2.2	1.8

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RICO AUTO 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 -2.5%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY23, a fall of 18.6%.
• Current assets fell 8% and stood at Rs 7 billion, while fixed assets rose 1% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 19 billion as against Rs 19 billion during FY23, thereby witnessing a fall of 2%.

RICO AUTO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,893	7,200	4.5
Current Liabilities	Rs m	8,220	8,017	-2.5
Long-term Debt	Rs m	3,767	3,067	-18.6
Total Liabilities	Rs m	19,357	18,874	-2.5
Current assets	Rs m	7,663	7,030	-8.3
Fixed Assets	Rs m	11,694	11,844	1.3
Total Assets	Rs m	19,357	18,874	-2.5

RICO AUTO Cash Flow Statement Analysis

• RICO AUTO's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 54.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -84 million from the Rs 94 million net cash flows seen during FY23.

RICO AUTO 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	1,599	2,472	54.6%
Cash Flow from Investing Activities	Rs m	-2,334	-1,032	-
Cash Flow from Financing Activities	Rs m	773	-1,532	-
Net Cash Flow	Rs m	94	-84	-

Current Valuations for RICO AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.9, an decline from the EPS of Rs 3.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 105.9, stands at 36.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 9.5 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	170.2	159.6
TTM Earnings per share	Rs	3.8	2.9
Diluted earnings per share	Rs	3.8	2.9
Price to Cash Flow	x	5.6	9.5
TTM P/E ratio	x	17.0	36.9
Price / Book Value ratio	x	1.2	2.1
Market Cap	Rs m	8,584	14,933
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RICO AUTO

• 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 2.0x during FY24, from 2.4x 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 5.4% during FY24, from 7.4% 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 11.3% during FY24, from 12.0% 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 declined and down at 5.1% during FY24, from 5.4% 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	0.9
Debtors’ Days	Days	6	6
Interest coverage	x	2.4	2.0
Debt to equity ratio	x	0.5	0.4
Return on assets	%	5.4	5.1
Return on equity	%	7.4	5.4
Return on capital employed	%	12.0	11.3

To see how RICO AUTO has performed over the last 5 years, please visit here.

RICO AUTO Share Price Performance

Over the last one year, RICO AUTO share price has moved up from Rs 84.3 to Rs 105.9, registering a gain of Rs 21.6 or around 25.6%.

Overall, the S&P BSE SENSEX is up 24.1% over the year.

(To know more, check out historical annual results for RICO AUTO and quarterly results for RICO AUTO)