RANE HOLDINGS 2023-24 Annual Report Analysis

Tue, 9 Jul

RANE HOLDINGS 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.

RANE HOLDINGS Income Statement Analysis

• Operating income during the year rose 0.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 10.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.6% in FY24 as against 8.6% in FY23.
• Depreciation charges decreased by 3.3% and finance costs increased by 43.2% YoY, respectively.
• Other income declined by 51.4% YoY.
• Net profit for the year grew by 71.4% YoY.
• Net profit margins during the year grew from 2.5% in FY23 to 4.2% in FY24.

RANE HOLDINGS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	35,083	35,298	0.6%
Other income	Rs m	291	142	-51.4%
Total Revenues	Rs m	35,375	35,440	0.2%
Gross profit	Rs m	3,002	2,699	-10.1%
Depreciation	Rs m	1,417	1,370	-3.3%
Interest	Rs m	498	713	43.2%
Profit before tax	Rs m	1,378	757	-45.1%
Tax	Rs m	505	-739	NA
Profit after tax	Rs m	873	1,496	71.4%
Gross profit margin	%	8.6	7.6
Effective tax rate	%	36.6	-97.6
Net profit margin	%	2.5	4.2

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RANE HOLDINGS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 11 billion as compared to Rs 11 billion in FY23, thereby witnessing an decrease of -2.3%.
• Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY23, a fall of 8.9%.
• Current assets fell 2% and stood at Rs 12 billion, while fixed assets fell 1% and stood at Rs 13 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 25 billion as against Rs 26 billion during FY23, thereby witnessing a fall of 2%.

RANE HOLDINGS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,079	9,062	12.2
Current Liabilities	Rs m	11,387	11,125	-2.3
Long-term Debt	Rs m	3,348	3,050	-8.9
Total Liabilities	Rs m	25,522	25,046	-1.9
Current assets	Rs m	12,369	12,076	-2.4
Fixed Assets	Rs m	13,153	12,970	-1.4
Total Assets	Rs m	25,522	25,046	-1.9

RANE HOLDINGS Cash Flow Statement Analysis

• RANE HOLDINGS's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 25.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -94 million from the Rs 204 million net cash flows seen during FY23.

RANE HOLDINGS 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	1,862	2,334	25.3%
Cash Flow from Investing Activities	Rs m	-1,516	-1,140	-
Cash Flow from Financing Activities	Rs m	-142	-1,379	-
Net Cash Flow	Rs m	204	-94	-

Current Valuations for RANE HOLDINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 104.8, an improvement from the EPS of Rs 61.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,760.5, stands at 27.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 5.5 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	2,456.8	2,471.9
TTM Earnings per share	Rs	61.1	104.8
Diluted earnings per share	Rs	61.2	104.8
Price to Cash Flow	x	5.4	5.5
TTM P/E ratio	x	14.0	27.3
Price / Book Value ratio	x	1.4	1.8
Market Cap	Rs m	11,458	15,871
Dividends per share (Unadj.)	Rs	17.0	25.0

Ratio Analysis for RANE HOLDINGS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x 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 deteriorated and stood at 2.1x during FY24, from 3.8x 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 16.5% during FY24, from 10.8% 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 12.1% during FY24, from 16.4% 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 8.8% during FY24, from 5.4% 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	1.1
Debtors’ Days	Days	668	624
Interest coverage	x	3.8	2.1
Debt to equity ratio	x	0.4	0.3
Return on assets	%	5.4	8.8
Return on equity	%	10.8	16.5
Return on capital employed	%	16.4	12.1

To see how RANE HOLDINGS has performed over the last 5 years, please visit here.

RANE HOLDINGS Share Price Performance

Over the last one year, RANE HOLDINGS share price has moved up from Rs 1,111.3 to Rs 1,760.5, registering a gain of Rs 649.3 or around 58.4%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for RANE HOLDINGS and quarterly results for RANE HOLDINGS)