ROTO PUMPS 2023-24 Annual Report Analysis

Tue, 8 Oct

ROTO PUMPS 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.

ROTO PUMPS Income Statement Analysis

• Operating income during the year rose 21.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.1% in FY24 as against 23.9% in FY23.
• Depreciation charges increased by 48.6% and finance costs increased by 15.7% YoY, respectively.
• Other income grew by 2.5% YoY.
• Net profit for the year grew by 19.0% YoY.
• Net profit margins during the year declined from 14.7% in FY23 to 14.4% in FY24.

ROTO PUMPS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,258	2,745	21.6%
Other income	Rs m	44	45	2.5%
Total Revenues	Rs m	2,301	2,790	21.2%
Gross profit	Rs m	540	663	22.6%
Depreciation	Rs m	87	129	48.6%
Interest	Rs m	42	49	15.7%
Profit before tax	Rs m	455	529	16.4%
Tax	Rs m	124	135	9.3%
Profit after tax	Rs m	331	394	19.0%
Gross profit margin	%	23.9	24.1
Effective tax rate	%	27.2	25.5
Net profit margin	%	14.7	14.4

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ROTO PUMPS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 898 million as compared to Rs 959 million in FY23, thereby witnessing an decrease of -6.4%.
• Long-term debt stood at Rs 21 million as compared to Rs 19 million during FY23, a growth of 7.6%.
• Current assets rose 7% and stood at Rs 2 billion, while fixed assets rose 14% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 10%.

ROTO PUMPS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,620	1,949	20.4
Current Liabilities	Rs m	959	898	-6.4
Long-term Debt	Rs m	19	21	7.6
Total Liabilities	Rs m	2,736	3,012	10.1
Current assets	Rs m	1,638	1,758	7.4
Fixed Assets	Rs m	1,098	1,254	14.2
Total Assets	Rs m	2,736	3,012	10.1

ROTO PUMPS Cash Flow Statement Analysis

• ROTO PUMPS's cash flow from operating activities (CFO) during FY24 stood at Rs 386 million, an improvement of 30.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -251 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -149 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -13 million from the Rs 42 million net cash flows seen during FY23.

ROTO PUMPS 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	297	386	30.0%
Cash Flow from Investing Activities	Rs m	-391	-251	-
Cash Flow from Financing Activities	Rs m	136	-149	-
Net Cash Flow	Rs m	42	-13	-

Current Valuations for ROTO PUMPS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.5, an decline from the EPS of Rs 21.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 526.1, stands at 44.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 33.6 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	143.8	87.4
TTM Earnings per share	Rs	21.1	12.5
Diluted earnings per share	Rs	10.5	12.5
Price to Cash Flow	x	43.6	33.6
TTM P/E ratio	x	55.1	44.1
Price / Book Value ratio	x	4.9	9.0
Market Cap	Rs m	7,978	17,551
Dividends per share (Unadj.)	Rs	3.2	1.9

Ratio Analysis for ROTO PUMPS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY24, from 1.7x 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 11.8x during FY24, from 11.7x 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 20.2% during FY24, from 20.4% 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 29.4% during FY24, from 30.3% 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 14.7% during FY24, from 13.7% 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	1.7	2.0
Debtors’ Days	Days	804	795
Interest coverage	x	11.7	11.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.7	14.7
Return on equity	%	20.4	20.2
Return on capital employed	%	30.3	29.4

To see how ROTO PUMPS has performed over the last 5 years, please visit here.

ROTO PUMPS Share Price Performance

Over the last one year, ROTO PUMPS share price has moved up from Rs 351.8 to Rs 526.1, registering a gain of Rs 174.3 or around 49.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 69,554.8 (up 1.1%). Over the last one year it has moved up from 48,205.1 to 69,554.8, a gain of 21,350 points (up 44.3%).

Overall, the S&P BSE SENSEX is up 24.5% over the year.

(To know more, check out historical annual results for ROTO PUMPS and quarterly results for ROTO PUMPS)