REFEX INDUSTRIES 2023-24 Annual Report Analysis

Mon, 12 Aug

REFEX INDUSTRIES 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.

REFEX INDUSTRIES Income Statement Analysis

• Operating income during the year fell 15.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 16.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.6% in FY24 as against 10.7% in FY23.
• Depreciation charges increased by 96.5% and finance costs increased by 51.3% YoY, respectively.
• Other income grew by 120.3% YoY.
• Net profit for the year declined by 19.9% YoY.
• Net profit margins during the year declined from 7.1% in FY23 to 6.7% in FY24.

REFEX INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	16,292	13,829	-15.1%
Other income	Rs m	83	183	120.3%
Total Revenues	Rs m	16,374	14,011	-14.4%
Gross profit	Rs m	1,744	1,460	-16.3%
Depreciation	Rs m	69	135	96.5%
Interest	Rs m	194	294	51.3%
Profit before tax	Rs m	1,564	1,213	-22.4%
Tax	Rs m	403	284	-29.7%
Profit after tax	Rs m	1,161	930	-19.9%
Gross profit margin	%	10.7	10.6
Effective tax rate	%	25.8	23.4
Net profit margin	%	7.1	6.7

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REFEX INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -41.6%.
• Long-term debt stood at Rs 530 million as compared to Rs 405 million during FY23, a growth of 30.9%.
• Current assets fell 5% and stood at Rs 5 billion, while fixed assets rose 30% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 6%.

REFEX INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,141	4,652	48.1
Current Liabilities	Rs m	3,320	1,939	-41.6
Long-term Debt	Rs m	405	530	30.9
Total Liabilities	Rs m	7,504	7,934	5.7
Current assets	Rs m	5,263	5,021	-4.6
Fixed Assets	Rs m	2,241	2,913	30.0
Total Assets	Rs m	7,504	7,934	5.7

REFEX INDUSTRIES Cash Flow Statement Analysis

• REFEX INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 29 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -419 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 619 million, an improvement of 3% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 228 million from the Rs 99 million net cash flows seen during FY23.

REFEX INDUSTRIES 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	276	29	-89.7%
Cash Flow from Investing Activities	Rs m	-776	-419	-
Cash Flow from Financing Activities	Rs m	599	619	3.3%
Net Cash Flow	Rs m	99	228	129.7%

Current Valuations for REFEX INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.0, an decline from the EPS of Rs 52.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 281.3, stands at 33.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.3 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 57.2 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	736.8	119.5
TTM Earnings per share	Rs	52.5	8.0
Diluted earnings per share	Rs	9.6	7.7
Price to Cash Flow	x	23.3	57.2
TTM P/E ratio	x	24.7	33.6
Price / Book Value ratio	x	1.5	13.1
Market Cap	Rs m	4,770	60,961
Dividends per share (Unadj.)	Rs	0.4	0.5

Ratio Analysis for REFEX INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x 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 5.1x during FY24, from 9.1x 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 20.0% during FY24, from 36.9% 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 29.1% during FY24, from 49.6% 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 15.4% during FY24, from 18.1% 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	2.6
Debtors’ Days	Days	549	808
Interest coverage	x	9.1	5.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	18.1	15.4
Return on equity	%	36.9	20.0
Return on capital employed	%	49.6	29.1

To see how REFEX INDUSTRIES has performed over the last 5 years, please visit here.

REFEX INDUSTRIES Share Price Performance

Over the last one year, REFEX INDUSTRIES share price has moved down from Rs 669.6 to Rs 281.3, registering a loss of Rs 388.3 or around 58.0%.

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

(To know more, check out historical annual results for REFEX INDUSTRIES and quarterly results for REFEX INDUSTRIES)