RADHIKA JEWELTECH 2023-24 Annual Report Analysis

Thu, 26 Sep

RADHIKA JEWELTECH 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.

RADHIKA JEWELTECH Income Statement Analysis

• Operating income during the year rose 74.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 71.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.9% in FY24 as against 13.1% in FY23.
• Depreciation charges increased by 33.9% and finance costs increased by 153.3% YoY, respectively.
• Other income declined by 17.6% YoY.
• Net profit for the year grew by 66.8% YoY.
• Net profit margins during the year declined from 9.5% in FY23 to 9.1% in FY24.

RADHIKA JEWELTECH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,127	5,441	74.0%
Other income	Rs m	19	16	-17.6%
Total Revenues	Rs m	3,146	5,456	73.4%
Gross profit	Rs m	408	701	71.7%
Depreciation	Rs m	17	22	33.9%
Interest	Rs m	10	25	153.3%
Profit before tax	Rs m	401	669	67.0%
Tax	Rs m	104	174	67.7%
Profit after tax	Rs m	297	495	66.8%
Gross profit margin	%	13.1	12.9
Effective tax rate	%	25.9	26.0
Net profit margin	%	9.5	9.1

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RADHIKA JEWELTECH Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 625 million as compared to Rs 422 million in FY23, thereby witnessing an increase of 48.0%.
• Long-term debt down at Rs 101 million as compared to Rs 108 million during FY23, a fall of 6.3%.
• Current assets rose 30% and stood at Rs 3 billion, while fixed assets fell 34% and stood at Rs 127 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 26%.

RADHIKA JEWELTECH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,154	2,649	23.0
Current Liabilities	Rs m	422	625	48.0
Long-term Debt	Rs m	108	101	-6.3
Total Liabilities	Rs m	2,682	3,373	25.7
Current assets	Rs m	2,491	3,246	30.3
Fixed Assets	Rs m	191	127	-33.6
Total Assets	Rs m	2,682	3,373	25.7

RADHIKA JEWELTECH Cash Flow Statement Analysis

• RADHIKA JEWELTECH's cash flow from operating activities (CFO) during FY24 stood at Rs -258 million, an improvement of 7.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -20 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 164 million, an improvement of 840% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -114 million from the Rs -283 million net cash flows seen during FY23.

RADHIKA JEWELTECH 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	-240	-258	-
Cash Flow from Investing Activities	Rs m	-21	-20	-
Cash Flow from Financing Activities	Rs m	-22	164	-
Net Cash Flow	Rs m	-283	-114	-

Current Valuations for RADHIKA JEWELTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.2, an decline from the EPS of Rs 12.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 128.2, stands at 31.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.7 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 25.3 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	132.5	46.1
TTM Earnings per share	Rs	12.6	4.2
Diluted earnings per share	Rs	2.5	4.2
Price to Cash Flow	x	55.5	25.3
TTM P/E ratio	x	58.6	31.0
Price / Book Value ratio	x	2.3	5.0
Market Cap	Rs m	4,963	13,116
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for RADHIKA JEWELTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 5.2x during FY24, from 5.9x 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 27.9x during FY24, from 41.7x 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 18.7% during FY24, from 13.8% 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 25.2% during FY24, from 18.2% 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 15.4% during FY24, from 11.4% 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	5.9	5.2
Debtors’ Days	Days	7	5
Interest coverage	x	41.7	27.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	11.4	15.4
Return on equity	%	13.8	18.7
Return on capital employed	%	18.2	25.2

To see how RADHIKA JEWELTECH has performed over the last 5 years, please visit here.

RADHIKA JEWELTECH Share Price Performance

Over the last one year, RADHIKA JEWELTECH share price has moved up from Rs 37.3 to Rs 128.2, registering a gain of Rs 90.9 or around 243.7%.

Overall, the S&P BSE SENSEX is up 29.4% over the year.

(To know more, check out historical annual results for RADHIKA JEWELTECH and quarterly results for RADHIKA JEWELTECH)