RSWM 2023-24 Annual Report Analysis

Mon, 19 Aug

RSWM 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.

RSWM Income Statement Analysis

• Operating income during the year rose 7.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 29.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.6% in FY24 as against 6.9% in FY23.
• Depreciation charges increased by 20.3% and finance costs increased by 31.0% YoY, respectively.
• Other income declined by 60.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 3.2% in FY23 to 0.5% in FY24.

RSWM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	37,889	40,579	7.1%
Other income	Rs m	914	364	-60.2%
Total Revenues	Rs m	38,803	40,943	5.5%
Gross profit	Rs m	2,613	1,853	-29.1%
Depreciation	Rs m	1,273	1,532	20.3%
Interest	Rs m	739	969	31.0%
Profit before tax	Rs m	1,515	-283	NA
Tax	Rs m	287	-72	NA
Profit after tax	Rs m	1,229	-211	NA
Gross profit margin	%	6.9	4.6
Effective tax rate	%	18.9	25.6
Net profit margin	%	3.2	-0.5

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RSWM Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 19 billion as compared to Rs 13 billion in FY23, thereby witnessing an increase of 42.0%.
• Long-term debt stood at Rs 8 billion as compared to Rs 5 billion during FY23, a growth of 50.9%.
• Current assets rose 20% and stood at Rs 21 billion, while fixed assets rose 27% and stood at Rs 19 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 41 billion as against Rs 33 billion during FY23, thereby witnessing a growth of 25%.

RSWM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,170	12,974	-1.5
Current Liabilities	Rs m	13,467	19,121	42.0
Long-term Debt	Rs m	4,997	7,539	50.9
Total Liabilities	Rs m	32,687	40,712	24.6
Current assets	Rs m	17,710	21,321	20.4
Fixed Assets	Rs m	14,976	18,996	26.8
Total Assets	Rs m	32,687	40,712	24.6

RSWM Cash Flow Statement Analysis

• RSWM's cash flow from operating activities (CFO) during FY24 stood at Rs -758 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 51.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 4 billion, an improvement of 198% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 12 million from the Rs -27 million net cash flows seen during FY23.

RSWM 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	889	-758	-
Cash Flow from Investing Activities	Rs m	-2,389	-3,622	-
Cash Flow from Financing Activities	Rs m	1,473	4,390	198.1%
Net Cash Flow	Rs m	-27	12	-

Current Valuations for RSWM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.5, an decline from the EPS of Rs 26.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 223.9, stands at -36.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.0 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	804.4	861.5
TTM Earnings per share	Rs	26.1	-4.5
Diluted earnings per share	Rs	26.1	-4.5
Price to Cash Flow	x	2.8	7.0
TTM P/E ratio	x	6.5	-36.7
Price / Book Value ratio	x	0.9	0.7
Market Cap	Rs m	12,031	9,298
Dividends per share (Unadj.)	Rs	5.0	0.0

Ratio Analysis for RSWM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.3x 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 0.7x 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 declined and down at -1.6% during FY24, from 9.3% 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 3.3% during FY24, from 12.4% 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 declined and down at 1.9% 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	1.3	1.1
Debtors’ Days	Days	438	580
Interest coverage	x	3.0	0.7
Debt to equity ratio	x	0.4	0.6
Return on assets	%	6.0	1.9
Return on equity	%	9.3	-1.6
Return on capital employed	%	12.4	3.3

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

RSWM Share Price Performance

Over the last one year, RSWM share price has moved up from Rs 187.5 to Rs 223.9, registering a gain of Rs 36.5 or around 19.4%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

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