RMC SWITCHGEARS 2023-24 Annual Report Analysis

Wed, 20 Nov

RMC SWITCHGEARS 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.

RMC SWITCHGEARS Income Statement Analysis

• Operating income during the year rose 37.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.5% in FY24 as against 25.3% in FY23.
• Depreciation charges increased by 0.6% and finance costs increased by 24.2% YoY, respectively.
• Other income grew by 79.7% YoY.
• Net profit for the year grew by 26.8% YoY.
• Net profit margins during the year declined from 11.4% in FY23 to 10.5% in FY24.

RMC SWITCHGEARS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,031	1,419	37.7%
Other income	Rs m	5	8	79.7%
Total Revenues	Rs m	1,035	1,427	37.9%
Gross profit	Rs m	261	319	22.2%
Depreciation	Rs m	27	27	0.6%
Interest	Rs m	70	86	24.2%
Profit before tax	Rs m	170	214	26.3%
Tax	Rs m	52	65	25.3%
Profit after tax	Rs m	117	149	26.8%
Gross profit margin	%	25.3	22.5
Effective tax rate	%	30.7	30.5
Net profit margin	%	11.4	10.5

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RMC SWITCHGEARS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 761 million as compared to Rs 501 million in FY23, thereby witnessing an increase of 51.9%.
• Long-term debt down at Rs 157 million as compared to Rs 186 million during FY23, a fall of 15.5%.
• Current assets rose 51% and stood at Rs 1 billion, while fixed assets fell 10% and stood at Rs 301 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 33%.

RMC SWITCHGEARS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	457	604	32.1
Current Liabilities	Rs m	501	761	51.9
Long-term Debt	Rs m	186	157	-15.5
Total Liabilities	Rs m	1,166	1,552	33.1
Current assets	Rs m	829	1,249	50.7
Fixed Assets	Rs m	334	301	-9.8
Total Assets	Rs m	1,166	1,552	33.1

RMC SWITCHGEARS Cash Flow Statement Analysis

• RMC SWITCHGEARS's cash flow from operating activities (CFO) during FY24 stood at Rs 78 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -54 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 19 million from the Rs 1 million net cash flows seen during FY23.

RMC SWITCHGEARS 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	-3	78	-
Cash Flow from Investing Activities	Rs m	-31	-5	-
Cash Flow from Financing Activities	Rs m	35	-54	-
Net Cash Flow	Rs m	1	19	2,495.9%

Current Valuations for RMC SWITCHGEARS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.4, an decline from the EPS of Rs 17.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 757.4, stands at 52.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.9 times, while the price to sales ratio stands at 5.5 times.
• The company's price to cash flow (P/CF) ratio stood at 33.1 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	150.0	137.6
TTM Earnings per share	Rs	17.1	14.4
Diluted earnings per share	Rs	11.4	14.4
Price to Cash Flow	x	19.7	33.1
TTM P/E ratio	x	24.1	52.4
Price / Book Value ratio	x	2.6	9.6
Market Cap	Rs m	1,201	5,824
Dividends per share (Unadj.)	Rs	0.0	0.2

Ratio Analysis for RMC SWITCHGEARS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 1.7x 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 3.5x during FY24, from 3.4x 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 24.6% during FY24, from 25.7% 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 39.5% during FY24, from 37.2% 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 15.2% during FY24, from 16.0% 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	1.7	1.6
Debtors’ Days	Days	2,022	2,354
Interest coverage	x	3.4	3.5
Debt to equity ratio	x	0.4	0.3
Return on assets	%	16.0	15.2
Return on equity	%	25.7	24.6
Return on capital employed	%	37.2	39.5

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

RMC SWITCHGEARS Share Price Performance

Over the last one year, RMC SWITCHGEARS share price has moved up from Rs 580.0 to Rs 757.4, registering a gain of Rs 177.4 or around 30.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 66,327.9 (up 0.4%). Over the last one year it has moved up from 48,904.9 to 66,327.9, a gain of 17,423 points (up 35.6%).

Overall, the S&P BSE SENSEX is up 18.2% over the year.

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