RAGHAV PRODUCTIVITY ENHANCERS 2023-24 Annual Report Analysis

Thu, 11 Jul

RAGHAV PRODUCTIVITY ENHANCERS 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.

RAGHAV PRODUCTIVITY ENHANCERS Income Statement Analysis

• Operating income during the year fell 14.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 34.7% in FY24 as against 29.6% in FY23.
• Depreciation charges increased by 3.4% and finance costs increased by 15.7% YoY, respectively.
• Other income grew by 93.4% YoY.
• Net profit for the year grew by 0.1% YoY.
• Net profit margins during the year grew from 20.8% in FY23 to 24.3% in FY24.

RAGHAV PRODUCTIVITY ENHANCERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,214	1,038	-14.5%
Other income	Rs m	4	8	93.4%
Total Revenues	Rs m	1,218	1,046	-14.1%
Gross profit	Rs m	359	360	0.1%
Depreciation	Rs m	26	27	3.4%
Interest	Rs m	2	2	15.7%
Profit before tax	Rs m	336	339	1.0%
Tax	Rs m	84	87	3.5%
Profit after tax	Rs m	252	252	0.1%
Gross profit margin	%	29.6	34.7
Effective tax rate	%	24.9	25.6
Net profit margin	%	20.8	24.3

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RAGHAV PRODUCTIVITY ENHANCERS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 124 million as compared to Rs 161 million in FY23, thereby witnessing an decrease of -22.8%.
• Current assets rose 9% and stood at Rs 773 million, while fixed assets rose 9% and stood at Rs 974 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 9%.

RAGHAV PRODUCTIVITY ENHANCERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,332	1,587	19.1
Current Liabilities	Rs m	161	124	-22.8
Long-term Debt	Rs m	87	0	-100.0
Total Liabilities	Rs m	1,609	1,747	8.6
Current assets	Rs m	712	773	8.7
Fixed Assets	Rs m	897	974	8.5
Total Assets	Rs m	1,609	1,747	8.6

RAGHAV PRODUCTIVITY ENHANCERS Cash Flow Statement Analysis

• RAGHAV PRODUCTIVITY ENHANCERS's cash flow from operating activities (CFO) during FY24 stood at Rs 233 million, an improvement of 16.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -189 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -13 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 31 million from the Rs -6 million net cash flows seen during FY23.

RAGHAV PRODUCTIVITY ENHANCERS 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	200	233	16.7%
Cash Flow from Investing Activities	Rs m	-240	-189	-
Cash Flow from Financing Activities	Rs m	34	-13	-
Net Cash Flow	Rs m	-6	31	-

Current Valuations for RAGHAV PRODUCTIVITY ENHANCERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.0, an decline from the EPS of Rs 22.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 907.0, stands at 80.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.1 times, while the price to sales ratio stands at 20.1 times.
• The company's price to cash flow (P/CF) ratio stood at 50.0 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	105.7	45.2
TTM Earnings per share	Rs	22.0	11.0
Diluted earnings per share	Rs	11.0	11.0
Price to Cash Flow	x	34.0	50.0
TTM P/E ratio	x	37.5	80.2
Price / Book Value ratio	x	7.0	8.8
Market Cap	Rs m	9,261	13,967
Dividends per share (Unadj.)	Rs	1.0	0.9

Ratio Analysis for RAGHAV PRODUCTIVITY ENHANCERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.2x during FY24, from 4.4x 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 171.4x during FY24, from 196.3x 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 15.9% during FY24, from 18.9% 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 21.5% during FY24, from 23.8% 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 14.6% during FY24, from 15.8% 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	4.4	6.2
Debtors’ Days	Days	1,111	1,185
Interest coverage	x	196.3	171.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	15.8	14.6
Return on equity	%	18.9	15.9
Return on capital employed	%	23.8	21.5

To see how RAGHAV PRODUCTIVITY ENHANCERS has performed over the last 5 years, please visit here.

RAGHAV PRODUCTIVITY ENHANCERS Share Price Performance

Over the last one year, RAGHAV PRODUCTIVITY ENHANCERS share price has moved up from Rs 520.9 to Rs 907.0, registering a gain of Rs 386.2 or around 74.1%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for RAGHAV PRODUCTIVITY ENHANCERS and quarterly results for RAGHAV PRODUCTIVITY ENHANCERS)