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RNFI SERVICES LTD. 2023-24 Annual Report Analysis

Wed, 31 Jul

RNFI SERVICES LTD. 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.

RNFI SERVICES LTD. Income Statement Analysis

• Operating income during the year fell 12.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 49.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 1.4% in FY24 as against 0.8% in FY23.
• Depreciation charges increased by 89.3% and finance costs increased by 28.5% YoY, respectively.
• Other income grew by 172.1% YoY.
• Net profit for the year grew by 103.8% YoY.
• Net profit margins during the year grew from 0.5% in FY23 to 1.1% in FY24.

RNFI SERVICES LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,666	9,354	-12.3%
Other income	Rs m	28	76	172.1%
Total Revenues	Rs m	10,694	9,431	-11.8%
Gross profit	Rs m	88	131	49.2%
Depreciation	Rs m	20	38	89.3%
Interest	Rs m	30	39	28.5%
Profit before tax	Rs m	65	130	99.2%
Tax	Rs m	16	31	85.6%
Profit after tax	Rs m	49	100	103.8%
Gross profit margin	%	0.8	1.4
Effective tax rate	%	25.2	23.5
Net profit margin	%	0.5	1.1

For Investors: Our Big Prediction

RNFI SERVICES LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 905 million in FY23, thereby witnessing an increase of 54.8%.
• Long-term debt stood at Rs 165 million as compared to Rs 123 million during FY23, a growth of 34.3%.
• Current assets rose 36% and stood at Rs 1 billion, while fixed assets rose 115% and stood at Rs 538 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 52%.

RNFI SERVICES LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	205	317	54.5
Current Liabilities	Rs m	905	1,401	54.8
Long-term Debt	Rs m	123	165	34.3
Total Liabilities	Rs m	1,247	1,897	52.1
Current assets	Rs m	997	1,359	36.3
Fixed Assets	Rs m	250	538	115.2
Total Assets	Rs m	1,247	1,897	52.1

RNFI SERVICES LTD. Cash Flow Statement Analysis

• RNFI SERVICES LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 471 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -262 million, an improvement of 223.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 74 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 283 million from the Rs -203 million net cash flows seen during FY23.

RNFI SERVICES LTD. 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	-201	471	-
Cash Flow from Investing Activities	Rs m	-81	-262	-
Cash Flow from Financing Activities	Rs m	79	74	-6.9%
Net Cash Flow	Rs m	-203	283	-

Current Valuations for RNFI SERVICES LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.5, an decline from the EPS of Rs 488.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 171.1, stands at 42.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.5 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 31.1 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	106,659.4	513.7
TTM Earnings per share	Rs	488.7	5.5
Diluted earnings per share	Rs	2.0	4.0
Price to Cash Flow	x	0.0	31.1
TTM P/E ratio	x	0.0	42.9
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	4,269
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RNFI SERVICES LTD.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.1x 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 4.3x during FY24, from 3.2x 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 improved and stood at 31.4% during FY24, from 23.8% 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 improved and stood at 35.1% during FY24, from 29.2% 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 improved and stood at 7.3% during FY24, from 6.3% 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	1.1	1.0
Debtors’ Days	Days	49	115
Interest coverage	x	3.2	4.3
Debt to equity ratio	x	0.6	0.5
Return on assets	%	6.3	7.3
Return on equity	%	23.8	31.4
Return on capital employed	%	29.2	35.1

To see how RNFI SERVICES LTD. has performed over the last 5 years, please visit here.

RNFI SERVICES LTD. Share Price Performance

Over the last one year, RNFI SERVICES LTD. share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 0.4% over the year.

(To know more, check out historical annual results for RNFI SERVICES LTD. and quarterly results for RNFI SERVICES LTD.)