RESPONSIVE INDUSTRIES 2023-24 Annual Report Analysis

Tue, 27 Aug

RESPONSIVE 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.

RESPONSIVE INDUSTRIES Income Statement Analysis

• Operating income during the year rose 11.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 120.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.3% in FY24 as against 11.3% in FY23.
• Depreciation charges decreased by 4.2% and finance costs decreased by 19.5% YoY, respectively.
• Other income grew by 14.8% YoY.
• Net profit for the year grew by 561.1% YoY.
• Net profit margins during the year grew from 2.5% in FY23 to 14.8% in FY24.

RESPONSIVE INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,737	10,870	11.6%
Other income	Rs m	161	184	14.8%
Total Revenues	Rs m	9,897	11,054	11.7%
Gross profit	Rs m	1,099	2,428	120.9%
Depreciation	Rs m	691	662	-4.2%
Interest	Rs m	285	229	-19.5%
Profit before tax	Rs m	284	1,721	506.2%
Tax	Rs m	40	108	171.1%
Profit after tax	Rs m	244	1,613	561.1%
Gross profit margin	%	11.3	22.3
Effective tax rate	%	14.1	6.3
Net profit margin	%	2.5	14.8

Don't Miss: Key Information for Long-term Investors

RESPONSIVE INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 15.3%.
• Long-term debt down at Rs 89 million as compared to Rs 185 million during FY23, a fall of 51.6%.
• Current assets rose 14% and stood at Rs 7 billion, while fixed assets rose 17% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 13 billion during FY23, thereby witnessing a growth of 16%.

RESPONSIVE INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,723	11,371	16.9
Current Liabilities	Rs m	3,219	3,711	15.3
Long-term Debt	Rs m	185	89	-51.6
Total Liabilities	Rs m	13,345	15,460	15.9
Current assets	Rs m	6,354	7,272	14.5
Fixed Assets	Rs m	6,991	8,188	17.1
Total Assets	Rs m	13,345	15,460	15.9

RESPONSIVE INDUSTRIES Cash Flow Statement Analysis

• RESPONSIVE INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 3,099.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 3,130.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -771 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -79 million from the Rs -73 million net cash flows seen during FY23.

RESPONSIVE 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	70	2,251	3,099.4%
Cash Flow from Investing Activities	Rs m	-48	-1,559	-
Cash Flow from Financing Activities	Rs m	-95	-771	-
Net Cash Flow	Rs m	-73	-79	-

Current Valuations for RESPONSIVE INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.0, an improvement from the EPS of Rs 0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 268.7, stands at 39.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 6.6 times.
• The company's price to cash flow (P/CF) ratio stood at 28.3 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	36.5	40.8
TTM Earnings per share	Rs	0.9	6.0
Diluted earnings per share	Rs	0.9	6.0
Price to Cash Flow	x	35.4	28.3
TTM P/E ratio	x	135.9	39.9
Price / Book Value ratio	x	4.0	5.7
Market Cap	Rs m	39,131	64,293
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for RESPONSIVE INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY24, from 2.0x 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 improved and stood at 8.5x during FY24, from 2.0x 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 14.2% during FY24, from 2.5% 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 17.0% during FY24, from 5.7% 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 11.9% during FY24, from 4.0% 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	2.0	2.0
Debtors’ Days	Days	127	186
Interest coverage	x	2.0	8.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.0	11.9
Return on equity	%	2.5	14.2
Return on capital employed	%	5.7	17.0

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

RESPONSIVE INDUSTRIES Share Price Performance

Over the last one year, RESPONSIVE INDUSTRIES share price has moved up from Rs 235.3 to Rs 268.7, registering a gain of Rs 33.4 or around 14.2%.

Overall, the S&P BSE SENSEX is up 25.0% over the year.

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