RAGHUVIR SYNTHETICS 2023-24 Annual Report Analysis

Tue, 13 Aug

RAGHUVIR SYNTHETICS 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.

RAGHUVIR SYNTHETICS Income Statement Analysis

• Operating income during the year rose 157.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.4% in FY24 as against 4.5% in FY23.
• Depreciation charges increased by 14.6% and finance costs increased by 23.9% YoY, respectively.
• Other income grew by 38.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 10.5% in FY23 to 1.9% in FY24.

RAGHUVIR SYNTHETICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	935	2,407	157.5%
Other income	Rs m	26	35	38.3%
Total Revenues	Rs m	960	2,443	154.4%
Gross profit	Rs m	-42	129	NA
Depreciation	Rs m	67	76	14.6%
Interest	Rs m	30	37	23.9%
Profit before tax	Rs m	-113	51	NA
Tax	Rs m	-15	5	NA
Profit after tax	Rs m	-98	47	NA
Gross profit margin	%	-4.5	5.4
Effective tax rate	%	13.0	9.3
Net profit margin	%	-10.5	1.9

End of Year Sale: Grab our small cap recommendation service at 60% off!

RAGHUVIR SYNTHETICS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 533 million as compared to Rs 471 million in FY23, thereby witnessing an increase of 13.2%.
• Long-term debt down at Rs 235 million as compared to Rs 237 million during FY23, a fall of 1.2%.
• Current assets rose 26% and stood at Rs 410 million, while fixed assets rose 6% and stood at Rs 688 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 1,000 million during FY23, thereby witnessing a growth of 11%.

RAGHUVIR SYNTHETICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	215	262	22.0
Current Liabilities	Rs m	471	533	13.2
Long-term Debt	Rs m	237	235	-1.2
Total Liabilities	Rs m	1,000	1,107	10.7
Current assets	Rs m	326	410	25.6
Fixed Assets	Rs m	649	688	6.1
Total Assets	Rs m	1,000	1,107	10.7

RAGHUVIR SYNTHETICS Cash Flow Statement Analysis

• RAGHUVIR SYNTHETICS's cash flow from operating activities (CFO) during FY24 stood at Rs 162 million, an improvement of 19.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -111 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -50 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 million from the Rs 2 million net cash flows seen during FY23.

RAGHUVIR SYNTHETICS 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	135	162	19.9%
Cash Flow from Investing Activities	Rs m	-288	-111	-
Cash Flow from Financing Activities	Rs m	155	-50	-
Net Cash Flow	Rs m	2	2	-20.6%

Current Valuations for RAGHUVIR SYNTHETICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.2, an improvement from the EPS of Rs -2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 127.0, stands at 81.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.8 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 45.8 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	24.1	62.1
TTM Earnings per share	Rs	-2.5	1.2
Diluted earnings per share	Rs	-2.5	1.2
Price to Cash Flow	x	-112.9	45.8
TTM P/E ratio	x	-36.5	81.6
Price / Book Value ratio	x	27.2	21.5
Market Cap	Rs m	5,851	5,621
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RAGHUVIR SYNTHETICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY24, from 0.7x 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 2.4x during FY24, from -2.8x 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 17.8% during FY24, from -45.8% 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 17.8% during FY24, from -18.4% 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 7.5% during FY24, from -6.9% 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	0.7	0.8
Debtors’ Days	Days	137	93
Interest coverage	x	-2.8	2.4
Debt to equity ratio	x	1.1	0.9
Return on assets	%	-6.9	7.5
Return on equity	%	-45.8	17.8
Return on capital employed	%	-18.4	17.8

To see how RAGHUVIR SYNTHETICS has performed over the last 5 years, please visit here.

RAGHUVIR SYNTHETICS Share Price Performance

Over the last one year, RAGHUVIR SYNTHETICS share price has moved up from Rs 124.7 to Rs 127.0, registering a gain of Rs 2.3 or around 1.8%.

Overall, the S&P BSE SENSEX is up 19.6% over the year.

(To know more, check out historical annual results for RAGHUVIR SYNTHETICS and quarterly results for RAGHUVIR SYNTHETICS)