RATNAMANI METALS 2023-24 Annual Report Analysis

Mon, 5 Aug

RATNAMANI METALS 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.

RATNAMANI METALS Income Statement Analysis

• Operating income during the year rose 13.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.7% in FY24 as against 17.3% in FY23.
• Depreciation charges increased by 17.0% and finance costs increased by 44.7% YoY, respectively.
• Other income grew by 124.0% YoY.
• Net profit for the year grew by 22.0% YoY.
• Net profit margins during the year grew from 11.4% in FY23 to 12.4% in FY24.

RATNAMANI METALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	44,744	50,591	13.1%
Other income	Rs m	327	732	124.0%
Total Revenues	Rs m	45,071	51,323	13.9%
Gross profit	Rs m	7,754	8,971	15.7%
Depreciation	Rs m	833	975	17.0%
Interest	Rs m	312	451	44.7%
Profit before tax	Rs m	6,935	8,277	19.3%
Tax	Rs m	1,813	2,026	11.8%
Profit after tax	Rs m	5,123	6,251	22.0%
Gross profit margin	%	17.3	17.7
Effective tax rate	%	26.1	24.5
Net profit margin	%	11.4	12.4

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RATNAMANI METALS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 9 billion in FY23, thereby witnessing an decrease of -30.3%.
• Long-term debt down at Rs 211 million as compared to Rs 572 million during FY23, a fall of 63.2%.
• Current assets rose 5% and stood at Rs 27 billion, while fixed assets rose 9% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 40 billion as against Rs 38 billion during FY23, thereby witnessing a growth of 6%.

RATNAMANI METALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	26,039	31,405	20.6
Current Liabilities	Rs m	8,608	6,000	-30.3
Long-term Debt	Rs m	572	211	-63.2
Total Liabilities	Rs m	37,803	40,198	6.3
Current assets	Rs m	25,330	26,657	5.2
Fixed Assets	Rs m	12,473	13,542	8.6
Total Assets	Rs m	37,803	40,198	6.3

RATNAMANI METALS Cash Flow Statement Analysis

• RATNAMANI METALS's cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion, an improvement of 64.7% 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 -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -97 million net cash flows seen during FY23.

RATNAMANI METALS 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	3,105	5,112	64.7%
Cash Flow from Investing Activities	Rs m	-2,077	-1,453	-
Cash Flow from Financing Activities	Rs m	-1,161	-1,930	-
Net Cash Flow	Rs m	-97	1,728	-

Current Valuations for RATNAMANI METALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 89.2, an improvement from the EPS of Rs 73.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,490.6, stands at 39.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.8 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 28.4 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	638.4	721.8
TTM Earnings per share	Rs	73.1	89.2
Diluted earnings per share	Rs	73.1	89.2
Price to Cash Flow	x	23.2	28.4
TTM P/E ratio	x	27.0	39.1
Price / Book Value ratio	x	5.3	6.5
Market Cap	Rs m	137,300	204,958
Dividends per share (Unadj.)	Rs	12.0	14.0

Ratio Analysis for RATNAMANI METALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.4x during FY24, from 2.9x 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 19.3x during FY24, from 23.2x 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 19.9% during FY24, from 19.7% 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 27.6% during FY24, from 27.2% 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 16.7% during FY24, from 14.4% 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	2.9	4.4
Debtors’ Days	Days	823	679
Interest coverage	x	23.2	19.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.4	16.7
Return on equity	%	19.7	19.9
Return on capital employed	%	27.2	27.6

To see how RATNAMANI METALS has performed over the last 5 years, please visit here.

RATNAMANI METALS Share Price Performance

Over the last one year, RATNAMANI METALS share price has moved up from Rs 2,580.8 to Rs 3,490.6, registering a gain of Rs 909.9 or around 35.3%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 30,341.3 (down 4.9%). Over the last one year it has moved up from 21,650.4 to 30,341.3, a gain of 8,691 points (up 40.1%).

Overall, the S&P BSE SENSEX is up 18.6% over the year.

(To know more, check out historical annual results for RATNAMANI METALS and quarterly results for RATNAMANI METALS)