RADICO KHAITAN 2023-24 Annual Report Analysis

Wed, 17 Jul

RADICO KHAITAN 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.

RADICO KHAITAN Income Statement Analysis

• Operating income during the year was NA on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.5% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 6.9% in FY24 as against 5.5% in FY23.
• Depreciation charges increased by 60.5% and finance costs increased by 165.4% YoY, respectively.
• Other income declined by 17.7% YoY.
• Net profit for the year grew by 25.1% YoY.
• Net profit margins during the year declined from 3.2% in FY23 to 3.5% in FY24.

RADICO KHAITAN Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	-64,583	-72,468	NA
Other income	Rs m	152	125	-17.7%
Total Revenues	Rs m	-64,431	-72,343	NA
Gross profit	Rs m	3,529	5,030	42.5%
Depreciation	Rs m	709	1,138	60.5%
Interest	Rs m	225	597	165.4%
Profit before tax	Rs m	2,747	3,420	24.5%
Tax	Rs m	704	863	22.6%
Profit after tax	Rs m	2,044	2,558	25.1%
Gross profit margin	%	-5.5	-6.9
Effective tax rate	%	25.6	25.2
Net profit margin	%	-3.2	-3.5

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RADICO KHAITAN Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 12 billion as compared to Rs 14 billion in FY23, thereby witnessing an decrease of -13.5%.
• Long-term debt stood at Rs 3 billion as compared to Rs 3 billion during FY23, a growth of 1.1%.
• Current assets fell 5% and stood at Rs 21 billion, while fixed assets rose 6% and stood at Rs 20 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 40 billion as against Rs 40 billion during FY23, thereby witnessing a growth of 0%.

RADICO KHAITAN Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	22,038	23,706	7.6
Current Liabilities	Rs m	14,006	12,120	-13.5
Long-term Debt	Rs m	2,869	2,900	1.1
Total Liabilities	Rs m	40,307	40,327	0.0
Current assets	Rs m	21,926	20,782	-5.2
Fixed Assets	Rs m	18,381	19,545	6.3
Total Assets	Rs m	40,307	40,327	0.0

RADICO KHAITAN Cash Flow Statement Analysis

• RADICO KHAITAN's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 237 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -360 million from the Rs 208 million net cash flows seen during FY23.

RADICO KHAITAN 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	2,386	1,829	-23.4%
Cash Flow from Investing Activities	Rs m	-7,052	-2,426	-
Cash Flow from Financing Activities	Rs m	4,874	237	-95.1%
Net Cash Flow	Rs m	208	-360	-

Current Valuations for RADICO KHAITAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.1, an improvement from the EPS of Rs 15.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,702.8, stands at 89.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.6 times, while the price to sales ratio stands at -3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 53.4 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	-483.2	-542.1
TTM Earnings per share	Rs	15.3	19.1
Diluted earnings per share	Rs	15.3	19.1
Price to Cash Flow	x	58.0	53.4
TTM P/E ratio	x	78.1	89.0
Price / Book Value ratio	x	5.9	8.3
Market Cap	Rs m	131,084	197,279
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for RADICO KHAITAN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.6x 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 6.7x during FY24, from 13.2x 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 improved and stood at 10.8% during FY24, from 9.3% 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 improved and stood at 15.1% during FY24, from 11.9% 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 7.8% during FY24, from 5.6% 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	1.6	1.7
Debtors’ Days	Days	-466	-493
Interest coverage	x	13.2	6.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.6	7.8
Return on equity	%	9.3	10.8
Return on capital employed	%	11.9	15.1

To see how RADICO KHAITAN has performed over the last 5 years, please visit here.

RADICO KHAITAN Share Price Performance

Over the last one year, RADICO KHAITAN share price has moved up from Rs 1,379.0 to Rs 1,702.8, registering a gain of Rs 323.9 or around 23.5%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for RADICO KHAITAN and quarterly results for RADICO KHAITAN)