REGENCY INVESTMENTS 2022-23 Annual Report Analysis

Sat, 3 Jun

REGENCY INVESTMENTS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

REGENCY INVESTMENTS Income Statement Analysis

• Operating income during the year rose 156.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 201.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 81.8% in FY23 as against 69.4% in FY22.
• Depreciation charges increased by 20.6% and finance costs increased by 235.7% YoY, respectively.
• Other income declined by 84.0% YoY.
• Net profit for the year grew by 67.0% YoY.
• Net profit margins during the year declined from 10.5% in FY22 to 6.9% in FY23.

REGENCY INVESTMENTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	53	135	156.2%
Other income	Rs m	2	0	-84.0%
Total Revenues	Rs m	55	135	147.4%
Gross profit	Rs m	37	110	201.9%
Depreciation	Rs m	3	4	20.6%
Interest	Rs m	28	94	235.7%
Profit before tax	Rs m	7	13	76.9%
Tax	Rs m	2	3	110.2%
Profit after tax	Rs m	6	9	67.0%
Gross profit margin	%	69.4	81.8
Effective tax rate	%	23.1	27.4
Net profit margin	%	10.5	6.9

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REGENCY INVESTMENTS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 28 million as compared to Rs 15 million in FY22, thereby witnessing an increase of 88.3%.
• Long-term debt stood at Rs 897 million as compared to Rs 767 million during FY22, a growth of 17.0%.
• Current assets rose 43% and stood at Rs 37 million, while fixed assets rose 16% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 910 million during FY22, thereby witnessing a growth of 17%.

REGENCY INVESTMENTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	127	137	7.3
Current Liabilities	Rs m	15	28	88.3
Long-term Debt	Rs m	767	897	17.0
Total Liabilities	Rs m	910	1,063	16.8
Current assets	Rs m	26	37	43.2
Fixed Assets	Rs m	884	1,026	16.0
Total Assets	Rs m	910	1,063	16.8

REGENCY INVESTMENTS Cash Flow Statement Analysis

• REGENCY INVESTMENTS's cash flow from operating activities (CFO) during FY23 stood at Rs -5 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 10 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 91 million, an improvement of 782% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 96 million from the Rs 6 million net cash flows seen during FY22.

REGENCY INVESTMENTS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	2	-5	-
Cash Flow from Investing Activities	Rs m	-6	10	-
Cash Flow from Financing Activities	Rs m	10	91	782.4%
Net Cash Flow	Rs m	6	96	1,402.2%

Current Valuations for REGENCY INVESTMENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.9, an decline from the EPS of Rs 1.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 10.7, stands at 12.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 5.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	9.9	12.6
TTM Earnings per share	Rs	1.0	0.9
Diluted earnings per share	Rs	0.5	0.9
Price to Cash Flow	x	6.4	5.2
TTM P/E ratio	x	11.7	12.3
Price / Book Value ratio	x	0.3	0.5
Market Cap	Rs m	34	70
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for REGENCY INVESTMENTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.8x during FY22. 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 1.1x during FY23, from 1.3x during FY22. 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 6.8% during FY23, from 4.3% during FY23. 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 10.3% during FY23, from 3.9% during FY22. 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 9.7% during FY23, from 3.7% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.8	1.3
Debtors’ Days	Days	0	0
Interest coverage	x	1.3	1.1
Debt to equity ratio	x	6.0	6.6
Return on assets	%	3.7	9.7
Return on equity	%	4.3	6.8
Return on capital employed	%	3.9	10.3

To see how REGENCY INVESTMENTS has performed over the last 5 years, please visit here.

REGENCY INVESTMENTS Share Price Performance

Over the last one year, REGENCY INVESTMENTS share price has moved up from Rs 4.5 to Rs 10.7, registering a gain of Rs 6.2 or around 138.5%.

Overall, the S&P BSE SENSEX is up 12.9% over the year.

(To know more, check out historical annual results for REGENCY INVESTMENTS and quarterly results for REGENCY INVESTMENTS)