RAMA PHOSPHATES 2022-23 Annual Report Analysis

Thu, 17 Aug

RAMA PHOSPHATES has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

RAMA PHOSPHATES Income Statement Analysis

• Operating income during the year fell 0.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 33.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.3% in FY23 as against 12.5% in FY22.
• Depreciation charges decreased by 8.7% and finance costs decreased by 18.2% YoY, respectively.
• Other income declined by 88.3% YoY.
• Net profit for the year declined by 41.6% YoY.
• Net profit margins during the year declined from 8.0% in FY22 to 4.7% in FY23.

RAMA PHOSPHATES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,783	8,748	-0.4%
Other income	Rs m	57	7	-88.3%
Total Revenues	Rs m	8,840	8,755	-1.0%
Gross profit	Rs m	1,097	727	-33.7%
Depreciation	Rs m	108	99	-8.7%
Interest	Rs m	106	86	-18.2%
Profit before tax	Rs m	939	549	-41.6%
Tax	Rs m	239	139	-41.7%
Profit after tax	Rs m	700	409	-41.6%
Gross profit margin	%	12.5	8.3
Effective tax rate	%	25.4	25.4
Net profit margin	%	8.0	4.7

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RAMA PHOSPHATES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 29.9%.
• Long-term debt down at Rs 0 million as compared to Rs 0 million during FY22, a fall of 75.0%.
• Current assets rose 26% and stood at Rs 4 billion, while fixed assets rose 3% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 21%.

RAMA PHOSPHATES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,696	3,090	14.6
Current Liabilities	Rs m	1,668	2,166	29.9
Long-term Debt	Rs m	0	0	-75.0
Total Liabilities	Rs m	4,430	5,344	20.6
Current assets	Rs m	3,373	4,256	26.2
Fixed Assets	Rs m	1,057	1,087	2.9
Total Assets	Rs m	4,430	5,344	20.6

RAMA PHOSPHATES Cash Flow Statement Analysis

• RAMA PHOSPHATES's cash flow from operating activities (CFO) during FY23 stood at Rs -362 million, an improvement of 322.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -81 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 447 million, an improvement of 11% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 million from the Rs 0 million net cash flows seen during FY22.

RAMA PHOSPHATES Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-86	-362	-
Cash Flow from Investing Activities	Rs m	-317	-81	-
Cash Flow from Financing Activities	Rs m	402	447	11.3%
Net Cash Flow	Rs m	0	3	-

Current Valuations for RAMA PHOSPHATES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.1, an decline from the EPS of Rs 39.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 250.6, stands at 17.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 12.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	496.5	494.5
TTM Earnings per share	Rs	39.6	23.1
Diluted earnings per share	Rs	39.6	23.1
Price to Cash Flow	x	9.4	12.0
TTM P/E ratio	x	10.9	17.2
Price / Book Value ratio	x	2.1	2.0
Market Cap	Rs m	5,534	6,078
Dividends per share (Unadj.)	Rs	2.0	1.0

Ratio Analysis for RAMA PHOSPHATES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY23, from 2.0x during FY22. 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 7.4x during FY23, from 9.9x during FY22. 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 13.2% during FY23, from 26.0% during FY23. 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 20.5% during FY23, from 38.7% during FY22. 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 9.3% during FY23, from 18.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.0	2.0
Debtors’ Days	Days	88	263
Interest coverage	x	9.9	7.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.2	9.3
Return on equity	%	26.0	13.2
Return on capital employed	%	38.7	20.5

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

RAMA PHOSPHATES Share Price Performance

Over the last one year, RAMA PHOSPHATES share price has moved down from Rs 269.3 to Rs 250.6, registering a loss of Rs 18.7 or around 6.9%.

Overall, the S&P BSE SENSEX is up 8.9% over the year.

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