REMSONS IND. 2023-24 Annual Report Analysis

Tue, 24 Sep

REMSONS IND. 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.

REMSONS IND. Income Statement Analysis

• Operating income during the year fell 0.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.8% in FY24 as against 8.3% in FY23.
• Depreciation charges increased by 20.4% and finance costs increased by 7.4% YoY, respectively.
• Other income grew by 101.5% YoY.
• Net profit for the year grew by 59.1% YoY.
• Net profit margins during the year grew from 2.7% in FY23 to 4.3% in FY24.

REMSONS IND. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,128	3,123	-0.2%
Other income	Rs m	17	34	101.5%
Total Revenues	Rs m	3,145	3,157	0.4%
Gross profit	Rs m	258	306	18.6%
Depreciation	Rs m	91	110	20.4%
Interest	Rs m	63	68	7.4%
Profit before tax	Rs m	121	162	34.7%
Tax	Rs m	37	29	-20.7%
Profit after tax	Rs m	84	133	59.1%
Gross profit margin	%	8.3	9.8
Effective tax rate	%	30.6	18.0
Net profit margin	%	2.7	4.3

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REMSONS IND. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -5.1%.
• Long-term debt down at Rs 154 million as compared to Rs 321 million during FY23, a fall of 52.1%.
• Current assets rose 33% and stood at Rs 2 billion, while fixed assets rose 11% and stood at Rs 744 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 25%.

REMSONS IND. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	423	1,113	163.3
Current Liabilities	Rs m	1,067	1,013	-5.1
Long-term Debt	Rs m	321	154	-52.1
Total Liabilities	Rs m	1,903	2,375	24.8
Current assets	Rs m	1,230	1,631	32.6
Fixed Assets	Rs m	673	744	10.5
Total Assets	Rs m	1,903	2,375	24.8

REMSONS IND. Cash Flow Statement Analysis

• REMSONS IND.'s cash flow from operating activities (CFO) during FY24 stood at Rs 155 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -480 million, an improvement of 191.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 283 million, an improvement of 620% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -43 million from the Rs 58 million net cash flows seen during FY23.

REMSONS IND. 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	277	155	-44.1%
Cash Flow from Investing Activities	Rs m	-165	-480	-
Cash Flow from Financing Activities	Rs m	-54	283	-
Net Cash Flow	Rs m	58	-43	-

Current Valuations for REMSONS IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.8, an decline from the EPS of Rs 14.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 196.4, stands at 48.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 18.5 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	547.8	89.5
TTM Earnings per share	Rs	14.7	3.8
Diluted earnings per share	Rs	2.4	3.8
Price to Cash Flow	x	7.7	18.5
TTM P/E ratio	x	16.2	48.7
Price / Book Value ratio	x	3.2	4.0
Market Cap	Rs m	1,366	4,501
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for REMSONS IND.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x 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 improved and stood at 3.4x during FY24, from 2.9x 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 12.0% during FY24, from 19.8% 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 18.2% during FY24, from 24.7% 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 improved and stood at 8.5% during FY24, from 7.7% 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	1.6
Debtors’ Days	Days	638	680
Interest coverage	x	2.9	3.4
Debt to equity ratio	x	0.8	0.1
Return on assets	%	7.7	8.5
Return on equity	%	19.8	12.0
Return on capital employed	%	24.7	18.2

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

REMSONS IND. Share Price Performance

Over the last one year, REMSONS IND. share price has moved up from Rs 85.0 to Rs 196.4, registering a gain of Rs 111.3 or around 130.9%.

Overall, the S&P BSE SENSEX is up 27.1% over the year.

(To know more, check out historical annual results for REMSONS IND. and quarterly results for REMSONS IND.)