RAMKRISHNA FORG 2023-24 Annual Report Analysis

Mon, 12 Aug

RAMKRISHNA FORG 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.

RAMKRISHNA FORG Income Statement Analysis

• Operating income during the year rose 23.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.3% in FY24 as against 21.7% in FY23.
• Depreciation charges increased by 27.7% and finance costs increased by 26.4% YoY, respectively.
• Other income grew by 630.9% YoY.
• Net profit for the year grew by 37.6% YoY.
• Net profit margins during the year grew from 7.8% in FY23 to 8.6% in FY24.

RAMKRISHNA FORG Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	31,929	39,549	23.9%
Other income	Rs m	40	289	630.9%
Total Revenues	Rs m	31,969	39,838	24.6%
Gross profit	Rs m	6,939	8,416	21.3%
Depreciation	Rs m	2,016	2,576	27.7%
Interest	Rs m	1,218	1,539	26.4%
Profit before tax	Rs m	3,744	4,591	22.6%
Tax	Rs m	1,263	1,176	-6.9%
Profit after tax	Rs m	2,481	3,414	37.6%
Gross profit margin	%	21.7	21.3
Effective tax rate	%	33.7	25.6
Net profit margin	%	7.8	8.6

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RAMKRISHNA FORG Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 16 billion as compared to Rs 15 billion in FY23, thereby witnessing an increase of 1.2%.
• Long-term debt stood at Rs 8 billion as compared to Rs 8 billion during FY23, a growth of 1.2%.
• Current assets rose 24% and stood at Rs 24 billion, while fixed assets rose 62% and stood at Rs 30 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 54 billion as against Rs 38 billion during FY23, thereby witnessing a growth of 43%.

RAMKRISHNA FORG Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	12,907	26,748	107.2
Current Liabilities	Rs m	15,348	15,532	1.2
Long-term Debt	Rs m	7,576	7,666	1.2
Total Liabilities	Rs m	37,944	54,126	42.6
Current assets	Rs m	19,150	23,738	24.0
Fixed Assets	Rs m	18,794	30,389	61.7
Total Assets	Rs m	37,944	54,126	42.6

RAMKRISHNA FORG Cash Flow Statement Analysis

• RAMKRISHNA FORG's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -11 billion, an improvement of 273.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 6 billion, an improvement of 243% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs 84 million net cash flows seen during FY23.

RAMKRISHNA FORG 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	7,453	6,211	-16.7%
Cash Flow from Investing Activities	Rs m	-2,992	-11,175	-
Cash Flow from Financing Activities	Rs m	-4,377	6,250	-
Net Cash Flow	Rs m	84	1,286	1,439.8%

Current Valuations for RAMKRISHNA FORG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.9, an improvement from the EPS of Rs 15.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 926.7, stands at 48.6 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 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 16.5 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	199.7	218.8
TTM Earnings per share	Rs	15.5	18.9
Diluted earnings per share	Rs	13.7	18.9
Price to Cash Flow	x	11.5	16.5
TTM P/E ratio	x	20.9	48.6
Price / Book Value ratio	x	2.7	3.7
Market Cap	Rs m	34,876	99,007
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for RAMKRISHNA FORG

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x 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 4.0x during FY24, from 4.1x 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 12.8% during FY24, from 19.2% 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 17.8% during FY24, from 24.2% 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 declined and down at 9.2% during FY24, from 9.7% 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	1.5
Debtors’ Days	Days	886	784
Interest coverage	x	4.1	4.0
Debt to equity ratio	x	0.6	0.3
Return on assets	%	9.7	9.2
Return on equity	%	19.2	12.8
Return on capital employed	%	24.2	17.8

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

RAMKRISHNA FORG Share Price Performance

Over the last one year, RAMKRISHNA FORG share price has moved up from Rs 582.4 to Rs 926.7, registering a gain of Rs 344.3 or around 59.1%.

Overall, the S&P BSE SENSEX is up 21.4% over the year.

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