RAJOO ENGIN. 2023-24 Annual Report Analysis

Thu, 14 Nov

RAJOO ENGIN. 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.

RAJOO ENGIN. Income Statement Analysis

• Operating income during the year rose 23.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 89.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.5% in FY24 as against 8.8% in FY23.
• Depreciation charges increased by 2.0% and finance costs increased by 104.0% YoY, respectively.
• Other income grew by 47.0% YoY.
• Net profit for the year grew by 96.7% YoY.
• Net profit margins during the year grew from 6.3% in FY23 to 10.0% in FY24.

RAJOO ENGIN. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,598	1,974	23.5%
Other income	Rs m	28	41	47.0%
Total Revenues	Rs m	1,626	2,014	23.9%
Gross profit	Rs m	140	266	89.4%
Depreciation	Rs m	35	35	2.0%
Interest	Rs m	3	7	104.0%
Profit before tax	Rs m	130	264	103.4%
Tax	Rs m	30	67	125.8%
Profit after tax	Rs m	100	197	96.7%
Gross profit margin	%	8.8	13.5
Effective tax rate	%	22.9	25.4
Net profit margin	%	6.3	10.0

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RAJOO ENGIN. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 964 million as compared to Rs 671 million in FY23, thereby witnessing an increase of 43.7%.
• Current assets rose 27% and stood at Rs 2 billion, while fixed assets rose 24% and stood at Rs 596 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 26%.

RAJOO ENGIN. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,089	1,267	16.3
Current Liabilities	Rs m	671	964	43.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,803	2,274	26.1
Current assets	Rs m	1,323	1,678	26.8
Fixed Assets	Rs m	480	596	24.1
Total Assets	Rs m	1,803	2,274	26.1

RAJOO ENGIN. Cash Flow Statement Analysis

• RAJOO ENGIN.'s cash flow from operating activities (CFO) during FY24 stood at Rs 19 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -110 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -38 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -126 million from the Rs 49 million net cash flows seen during FY23.

RAJOO ENGIN. 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	202	19	-90.5%
Cash Flow from Investing Activities	Rs m	-134	-110	-
Cash Flow from Financing Activities	Rs m	-21	-38	-
Net Cash Flow	Rs m	49	-126	-

Current Valuations for RAJOO ENGIN.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.2, an improvement from the EPS of Rs 1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 360.0, stands at 180.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 35.0 times, while the price to sales ratio stands at 11.2 times.
• The company's price to cash flow (P/CF) ratio stood at 18.1 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	26.0	32.1
TTM Earnings per share	Rs	1.6	3.2
Diluted earnings per share	Rs	0.8	1.6
Price to Cash Flow	x	11.3	18.1
TTM P/E ratio	x	15.3	180.5
Price / Book Value ratio	x	1.9	3.3
Market Cap	Rs m	2,020	4,196
Dividends per share (Unadj.)	Rs	0.4	0.3

Ratio Analysis for RAJOO ENGIN.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x 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 deteriorated and stood at 40.7x during FY24, from 40.8x 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 15.6% during FY24, from 9.2% 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 21.4% during FY24, from 12.2% 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 9.0% during FY24, from 5.7% 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	1.7
Debtors’ Days	Days	377	293
Interest coverage	x	40.8	40.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.7	9.0
Return on equity	%	9.2	15.6
Return on capital employed	%	12.2	21.4

To see how RAJOO ENGIN. has performed over the last 5 years, please visit here.

RAJOO ENGIN. Share Price Performance

Over the last one year, RAJOO ENGIN. share price has moved up from Rs 68.4 to Rs 360.0, registering a gain of Rs 291.6 or around 426.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 65,748.7 (down 0.3%). Over the last one year it has moved up from 47,959.5 to 65,748.7, a gain of 17,789 points (up 37.1%).

Overall, the S&P BSE SENSEX is up 19.3% over the year.

(To know more, check out historical annual results for RAJOO ENGIN. and quarterly results for RAJOO ENGIN.)