RHETAN TMT 2023-24 Annual Report Analysis

Thu, 22 Aug

RHETAN TMT 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.

RHETAN TMT Income Statement Analysis

• Operating income during the year fell 24.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.9% in FY24 as against 9.5% in FY23.
• Depreciation charges increased by 8.2% and finance costs increased by 17.7% YoY, respectively.
• Other income declined by 51.4% YoY.
• Net profit for the year declined by 28.6% YoY.
• Net profit margins during the year declined from 6.3% in FY23 to 6.0% in FY24.

RHETAN TMT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	860	648	-24.7%
Other income	Rs m	9	4	-51.4%
Total Revenues	Rs m	869	652	-25.0%
Gross profit	Rs m	82	70	-13.9%
Depreciation	Rs m	7	7	8.2%
Interest	Rs m	13	15	17.7%
Profit before tax	Rs m	71	53	-26.5%
Tax	Rs m	17	14	-20.2%
Profit after tax	Rs m	54	39	-28.6%
Gross profit margin	%	9.5	10.9
Effective tax rate	%	24.2	26.3
Net profit margin	%	6.3	6.0

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RHETAN TMT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 229 million as compared to Rs 212 million in FY23, thereby witnessing an increase of 8.0%.
• Long-term debt down at Rs 12 million as compared to Rs 54 million during FY23, a fall of 76.9%.
• Current assets fell 9% and stood at Rs 915 million, while fixed assets rose 85% and stood at Rs 217 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 1%.

RHETAN TMT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	852	890	4.5
Current Liabilities	Rs m	212	229	8.0
Long-term Debt	Rs m	54	12	-76.9
Total Liabilities	Rs m	1,125	1,141	1.4
Current assets	Rs m	1,003	915	-8.8
Fixed Assets	Rs m	118	217	84.7
Total Assets	Rs m	1,125	1,141	1.4

RHETAN TMT Cash Flow Statement Analysis

• RHETAN TMT's cash flow from operating activities (CFO) during FY24 stood at Rs 145 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -88 million, an improvement of 1,100.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -41 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 16 million from the Rs 2 million net cash flows seen during FY23.

RHETAN TMT 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	-443	145	-
Cash Flow from Investing Activities	Rs m	-7	-88	-
Cash Flow from Financing Activities	Rs m	452	-41	-
Net Cash Flow	Rs m	2	16	891.9%

Current Valuations for RHETAN TMT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an decline from the EPS of Rs 0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 13.4, stands at 275.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.0 times, while the price to sales ratio stands at 16.5 times.
• The company's price to cash flow (P/CF) ratio stood at 200.3 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	1.1	0.8
TTM Earnings per share	Rs	0.1	0.0
Diluted earnings per share	Rs	0.1	0.0
Price to Cash Flow	x	194.0	200.3
TTM P/E ratio	x	217.7	275.3
Price / Book Value ratio	x	254.6	10.3
Market Cap	Rs m	216,810	9,184
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RHETAN TMT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.0x during FY24, from 4.7x 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 deteriorated and stood at 4.4x during FY24, from 6.5x 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 4.3% during FY24, from 6.4% 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 7.5% during FY24, from 9.3% 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 4.7% during FY24, from 6.0% 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	4.7	4.0
Debtors’ Days	Days	1,150	1,302
Interest coverage	x	6.5	4.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	6.0	4.7
Return on equity	%	6.4	4.3
Return on capital employed	%	9.3	7.5

To see how RHETAN TMT has performed over the last 5 years, please visit here.

RHETAN TMT Share Price Performance

Over the last one year, RHETAN TMT share price has moved up from Rs 8.9 to Rs 13.4, registering a gain of Rs 4.5 or around 50.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 32,011.5 (up 0.1%). Over the last one year it has moved up from 21,368.5 to 32,011.5, a gain of 10,643 points (up 49.8%).

Overall, the S&P BSE SENSEX is up 24.2% over the year.

(To know more, check out historical annual results for RHETAN TMT and quarterly results for RHETAN TMT)