RITCO LOGISTICS 2023-24 Annual Report Analysis

Thu, 17 Oct

RITCO LOGISTICS 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.

RITCO LOGISTICS Income Statement Analysis

• Operating income during the year rose 24.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 43.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.0% in FY24 as against 7.0% in FY23.
• Depreciation charges increased by 138.2% and finance costs increased by 31.8% YoY, respectively.
• Other income grew by 32.3% YoY.
• Net profit for the year grew by 34.2% YoY.
• Net profit margins during the year grew from 3.2% in FY23 to 3.5% in FY24.

RITCO LOGISTICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,511	9,333	24.3%
Other income	Rs m	29	38	32.3%
Total Revenues	Rs m	7,540	9,371	24.3%
Gross profit	Rs m	523	751	43.7%
Depreciation	Rs m	52	124	138.2%
Interest	Rs m	165	217	31.8%
Profit before tax	Rs m	335	448	33.8%
Tax	Rs m	92	122	32.7%
Profit after tax	Rs m	243	326	34.2%
Gross profit margin	%	7.0	8.0
Effective tax rate	%	27.4	27.1
Net profit margin	%	3.2	3.5

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RITCO LOGISTICS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 10.5%.
• Long-term debt stood at Rs 495 million as compared to Rs 169 million during FY23, a growth of 193.0%.
• Current assets rose 17% and stood at Rs 3 billion, while fixed assets rose 53% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 24%.

RITCO LOGISTICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,486	1,815	22.2
Current Liabilities	Rs m	1,966	2,172	10.5
Long-term Debt	Rs m	169	495	193.0
Total Liabilities	Rs m	3,645	4,534	24.4
Current assets	Rs m	2,931	3,443	17.5
Fixed Assets	Rs m	714	1,091	52.8
Total Assets	Rs m	3,645	4,534	24.4

RITCO LOGISTICS Cash Flow Statement Analysis

• RITCO LOGISTICS's cash flow from operating activities (CFO) during FY24 stood at Rs 148 million, an improvement of 44.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -356 million, an improvement of 91.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 329 million, an improvement of 97% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 121 million from the Rs 84 million net cash flows seen during FY23.

RITCO LOGISTICS 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	102	148	44.5%
Cash Flow from Investing Activities	Rs m	-186	-356	-
Cash Flow from Financing Activities	Rs m	167	329	96.7%
Net Cash Flow	Rs m	84	121	44.8%

Current Valuations for RITCO LOGISTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.3, an improvement from the EPS of Rs 9.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 396.6, stands at 32.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 12.3 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	306.8	381.3
TTM Earnings per share	Rs	9.9	13.3
Diluted earnings per share	Rs	8.6	11.5
Price to Cash Flow	x	14.4	12.3
TTM P/E ratio	x	17.5	32.9
Price / Book Value ratio	x	2.6	3.1
Market Cap	Rs m	3,930	5,549
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RITCO LOGISTICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.5x 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 3.1x during FY24, from 3.0x 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 18.0% during FY24, from 16.4% 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 28.8% during FY24, from 30.2% 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 12.0% during FY24, from 11.2% 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	1.5	1.6
Debtors’ Days	Days	1,178	1,154
Interest coverage	x	3.0	3.1
Debt to equity ratio	x	0.1	0.3
Return on assets	%	11.2	12.0
Return on equity	%	16.4	18.0
Return on capital employed	%	30.2	28.8

To see how RITCO LOGISTICS has performed over the last 5 years, please visit here.

RITCO LOGISTICS Share Price Performance

Over the last one year, RITCO LOGISTICS share price has moved up from Rs 242.0 to Rs 396.6, registering a gain of Rs 154.6 or around 63.9%.

Overall, the S&P BSE SENSEX is up 22.8% over the year.

(To know more, check out historical annual results for RITCO LOGISTICS and quarterly results for RITCO LOGISTICS)