RAMCO SYSTEMS 2023-24 Annual Report Analysis

Wed, 24 Jul

RAMCO SYSTEMS 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.

RAMCO SYSTEMS Income Statement Analysis

• Operating income during the year rose 6.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 40.3% in FY24 as against 32.7% in FY23.
• Depreciation charges increased by 7.9% and finance costs decreased by 30.2% YoY, respectively.
• Other income grew by 95.6% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 42.0% in FY23 to 46.0% in FY24.

RAMCO SYSTEMS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,922	5,258	6.8%
Other income	Rs m	323	633	95.6%
Total Revenues	Rs m	5,246	5,891	12.3%
Gross profit	Rs m	-1,610	-2,119	NA
Depreciation	Rs m	808	872	7.9%
Interest	Rs m	112	78	-30.2%
Profit before tax	Rs m	-2,207	-2,437	NA
Tax	Rs m	-138	-21	NA
Profit after tax	Rs m	-2,069	-2,417	NA
Gross profit margin	%	-32.7	-40.3
Effective tax rate	%	6.3	0.8
Net profit margin	%	-42.0	-46.0

Don't Miss: Key Information for Long-term Investors

RAMCO SYSTEMS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -16.5%.
• Current assets fell 54% and stood at Rs 2 billion, while fixed assets fell 8% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 9 billion during FY23, thereby witnessing a fall of 30%.

RAMCO SYSTEMS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,843	2,543	-47.5
Current Liabilities	Rs m	3,119	2,603	-16.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,116	6,404	-29.7
Current assets	Rs m	4,299	1,964	-54.3
Fixed Assets	Rs m	4,817	4,440	-7.8
Total Assets	Rs m	9,116	6,404	-29.7

RAMCO SYSTEMS Cash Flow Statement Analysis

• RAMCO SYSTEMS's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 157.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -767 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -560 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -392 million from the Rs 550 million net cash flows seen during FY23.

RAMCO SYSTEMS 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	403	1,038	157.5%
Cash Flow from Investing Activities	Rs m	-1,271	-767	-
Cash Flow from Financing Activities	Rs m	1,476	-560	-
Net Cash Flow	Rs m	550	-392	-

Current Valuations for RAMCO SYSTEMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -68.2, an decline from the EPS of Rs -58.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 373.7, stands at -5.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at -6.3 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	139.7	148.5
TTM Earnings per share	Rs	-58.7	-68.2
Diluted earnings per share	Rs	-58.2	-68.0
Price to Cash Flow	x	-5.4	-6.3
TTM P/E ratio	x	-3.3	-5.5
Price / Book Value ratio	x	2.0	3.8
Market Cap	Rs m	9,916	9,689
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RAMCO SYSTEMS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY24, from 1.4x 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 -30.1x during FY24, from -18.7x 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 -95.0% during FY24, from -42.7% 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 declined and down at -92.8% during FY24, from -43.3% 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 -36.5% during FY24, from -21.5% 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	1.4	0.8
Debtors’ Days	Days	113	66
Interest coverage	x	-18.7	-30.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-21.5	-36.5
Return on equity	%	-42.7	-95.0
Return on capital employed	%	-43.3	-92.8

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

RAMCO SYSTEMS Share Price Performance

Over the last one year, RAMCO SYSTEMS share price has moved up from Rs 265.2 to Rs 373.7, registering a gain of Rs 108.6 or around 40.9%.

Meanwhile, the S&P BSE IT Index is trading at Rs 41,097.2 (up 0.4%). Over the last one year it has moved up from 30,124.1 to 41,097.2, a gain of 10,973 points (up 36.4%).

Overall, the S&P BSE SENSEX is up 20.9% over the year.

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