ROSSELL INDIA 2023-24 Annual Report Analysis

Mon, 29 Jul

ROSSELL INDIA 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.

ROSSELL INDIA Income Statement Analysis

• Operating income during the year rose 3.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 28.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.3% in FY24 as against 14.9% in FY23.
• Depreciation charges increased by 0.4% and finance costs increased by 20.8% YoY, respectively.
• Other income grew by 43.0% YoY.
• Net profit for the year declined by 54.0% YoY.
• Net profit margins during the year declined from 7.8% in FY23 to 3.5% in FY24.

ROSSELL INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,536	3,667	3.7%
Other income	Rs m	40	57	43.0%
Total Revenues	Rs m	3,576	3,723	4.1%
Gross profit	Rs m	528	376	-28.8%
Depreciation	Rs m	137	138	0.4%
Interest	Rs m	118	142	20.8%
Profit before tax	Rs m	312	153	-51.2%
Tax	Rs m	36	25	-29.4%
Profit after tax	Rs m	276	127	-54.0%
Gross profit margin	%	14.9	10.3
Effective tax rate	%	11.5	16.6
Net profit margin	%	7.8	3.5

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ROSSELL INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 27.8%.
• Long-term debt down at Rs 50 million as compared to Rs 150 million during FY23, a fall of 66.7%.
• Current assets rose 24% and stood at Rs 3 billion, while fixed assets rose 0% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 11%.

ROSSELL INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,871	2,969	3.4
Current Liabilities	Rs m	2,083	2,663	27.8
Long-term Debt	Rs m	150	50	-66.7
Total Liabilities	Rs m	5,137	5,718	11.3
Current assets	Rs m	2,354	2,925	24.3
Fixed Assets	Rs m	2,783	2,793	0.4
Total Assets	Rs m	5,137	5,718	11.3

ROSSELL INDIA Cash Flow Statement Analysis

• ROSSELL INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 58 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -240 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 200 million, an improvement of 46% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 17 million from the Rs -8 million net cash flows seen during FY23.

ROSSELL INDIA 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	259	58	-77.7%
Cash Flow from Investing Activities	Rs m	-403	-240	-
Cash Flow from Financing Activities	Rs m	137	200	46.2%
Net Cash Flow	Rs m	-8	17	-

Current Valuations for ROSSELL INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.4, an decline from the EPS of Rs 7.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 607.0, stands at 179.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.7 times, while the price to sales ratio stands at 6.2 times.
• The company's price to cash flow (P/CF) ratio stood at 56.1 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	93.8	97.3
TTM Earnings per share	Rs	7.3	3.4
Diluted earnings per share	Rs	7.3	3.4
Price to Cash Flow	x	22.1	56.1
TTM P/E ratio	x	33.0	179.7
Price / Book Value ratio	x	3.5	5.0
Market Cap	Rs m	9,913	14,875
Dividends per share (Unadj.)	Rs	0.4	0.3

Ratio Analysis for ROSSELL INDIA

• 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 3.7x 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 4.3% during FY24, from 9.6% 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 9.8% during FY24, from 14.2% 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 declined and down at 4.7% 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	1.1	1.1
Debtors’ Days	Days	493	632
Interest coverage	x	3.7	2.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	7.7	4.7
Return on equity	%	9.6	4.3
Return on capital employed	%	14.2	9.8

To see how ROSSELL INDIA has performed over the last 5 years, please visit here.

ROSSELL INDIA Share Price Performance

Over the last one year, ROSSELL INDIA share price has moved up from Rs 451.9 to Rs 607.0, registering a gain of Rs 155.1 or around 34.3%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, check out historical annual results for ROSSELL INDIA and quarterly results for ROSSELL INDIA)