RAJRATAN GLOBAL WIRE 2023-24 Annual Report Analysis

Wed, 10 Jul

RAJRATAN GLOBAL WIRE 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.

RAJRATAN GLOBAL WIRE Income Statement Analysis

• Operating income during the year fell 0.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.3% in FY24 as against 18.1% in FY23.
• Depreciation charges decreased by 2.0% and finance costs increased by 16.2% YoY, respectively.
• Other income grew by 2.7% YoY.
• Net profit for the year declined by 28.3% YoY.
• Net profit margins during the year declined from 11.2% in FY23 to 8.1% in FY24.

RAJRATAN GLOBAL WIRE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,954	8,905	-0.5%
Other income	Rs m	33	34	2.7%
Total Revenues	Rs m	8,987	8,939	-0.5%
Gross profit	Rs m	1,620	1,277	-21.2%
Depreciation	Rs m	181	177	-2.0%
Interest	Rs m	168	196	16.2%
Profit before tax	Rs m	1,304	938	-28.0%
Tax	Rs m	302	220	-27.3%
Profit after tax	Rs m	1,001	718	-28.3%
Gross profit margin	%	18.1	14.3
Effective tax rate	%	23.2	23.4
Net profit margin	%	11.2	8.1

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RAJRATAN GLOBAL WIRE 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 4.3%.
• Long-term debt stood at Rs 1 billion as compared to Rs 864 million during FY23, a growth of 20.9%.
• Current assets rose 4% and stood at Rs 3 billion, while fixed assets rose 15% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 11%.

RAJRATAN GLOBAL WIRE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,394	4,926	12.1
Current Liabilities	Rs m	2,262	2,360	4.3
Long-term Debt	Rs m	864	1,044	20.9
Total Liabilities	Rs m	7,644	8,464	10.7
Current assets	Rs m	2,761	2,867	3.9
Fixed Assets	Rs m	4,883	5,597	14.6
Total Assets	Rs m	7,644	8,464	10.7

RAJRATAN GLOBAL WIRE Cash Flow Statement Analysis

• RAJRATAN GLOBAL WIRE's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -958 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -97 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 0 million from the Rs 23 million net cash flows seen during FY23.

RAJRATAN GLOBAL WIRE 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	1,592	1,056	-33.7%
Cash Flow from Investing Activities	Rs m	-1,668	-958	-
Cash Flow from Financing Activities	Rs m	98	-97	-
Net Cash Flow	Rs m	23	0	-98.2%

Current Valuations for RAJRATAN GLOBAL WIRE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.1, an decline from the EPS of Rs 19.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 614.8, stands at 43.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 42.4 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	176.4	175.4
TTM Earnings per share	Rs	19.7	14.1
Diluted earnings per share	Rs	19.7	14.1
Price to Cash Flow	x	31.9	42.4
TTM P/E ratio	x	37.7	43.5
Price / Book Value ratio	x	11.1	7.7
Market Cap	Rs m	48,919	38,002
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for RAJRATAN GLOBAL WIRE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.2x 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 5.8x during FY24, from 8.7x 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 declined and down at 14.6% during FY24, from 22.8% 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 declined and down at 19.0% during FY24, from 28.0% 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 10.8% during FY24, from 15.3% 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	1.2	1.2
Debtors’ Days	Days	556	633
Interest coverage	x	8.7	5.8
Debt to equity ratio	x	0.2	0.2
Return on assets	%	15.3	10.8
Return on equity	%	22.8	14.6
Return on capital employed	%	28.0	19.0

To see how RAJRATAN GLOBAL WIRE has performed over the last 5 years, please visit here.

RAJRATAN GLOBAL WIRE Share Price Performance

Over the last one year, RAJRATAN GLOBAL WIRE share price has moved down from Rs 819.0 to Rs 614.8, registering a loss of Rs 204.2 or around 24.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 32,912.4 (down 1.7%). Over the last one year it has moved up from 21,107.3 to 32,912.4, a gain of 11,805 points (up 55.9%).

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for RAJRATAN GLOBAL WIRE and quarterly results for RAJRATAN GLOBAL WIRE)