RUCHIRA PAPERS 2022-23 Annual Report Analysis

Thu, 21 Sep

RUCHIRA PAPERS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

RUCHIRA PAPERS Income Statement Analysis

• Operating income during the year rose 31.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 71.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.6% in FY23 as against 10.4% in FY22.
• Depreciation charges increased by 5.7% and finance costs decreased by 17.5% YoY, respectively.
• Other income grew by 22.2% YoY.
• Net profit for the year grew by 104.3% YoY.
• Net profit margins during the year grew from 5.4% in FY22 to 8.4% in FY23.

RUCHIRA PAPERS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,129	8,027	31.0%
Other income	Rs m	14	18	22.2%
Total Revenues	Rs m	6,143	8,045	31.0%
Gross profit	Rs m	637	1,092	71.5%
Depreciation	Rs m	145	153	5.7%
Interest	Rs m	61	50	-17.5%
Profit before tax	Rs m	445	906	103.5%
Tax	Rs m	114	230	101.2%
Profit after tax	Rs m	331	676	104.3%
Gross profit margin	%	10.4	13.6
Effective tax rate	%	25.7	25.4
Net profit margin	%	5.4	8.4

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RUCHIRA PAPERS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 906 million as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -12.3%.
• Long-term debt down at Rs 5 million as compared to Rs 96 million during FY22, a fall of 94.8%.
• Current assets rose 14% and stood at Rs 2 billion, while fixed assets rose 8% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 11%.

RUCHIRA PAPERS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,066	3,805	24.1
Current Liabilities	Rs m	1,033	906	-12.3
Long-term Debt	Rs m	96	5	-94.8
Total Liabilities	Rs m	4,603	5,090	10.6
Current assets	Rs m	1,825	2,087	14.4
Fixed Assets	Rs m	2,778	3,003	8.1
Total Assets	Rs m	4,603	5,090	10.6

RUCHIRA PAPERS Cash Flow Statement Analysis

• RUCHIRA PAPERS's cash flow from operating activities (CFO) during FY23 stood at Rs 619 million, an improvement of 77.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -360 million, an improvement of 40.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -257 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 million from the Rs 0 million net cash flows seen during FY22.

RUCHIRA PAPERS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	350	619	77.1%
Cash Flow from Investing Activities	Rs m	-256	-360	-
Cash Flow from Financing Activities	Rs m	-94	-257	-
Net Cash Flow	Rs m	0	3	-

Current Valuations for RUCHIRA PAPERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.7, an improvement from the EPS of Rs 13.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 150.1, stands at 5.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 4.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	243.2	268.9
TTM Earnings per share	Rs	13.1	22.7
Diluted earnings per share	Rs	11.1	22.7
Price to Cash Flow	x	6.6	4.0
TTM P/E ratio	x	9.4	5.8
Price / Book Value ratio	x	0.7	0.9
Market Cap	Rs m	2,294	3,339
Dividends per share (Unadj.)	Rs	2.0	5.0

Ratio Analysis for RUCHIRA PAPERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY23, from 1.8x during FY22. 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 19.0x during FY23, from 8.3x during FY22. 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 17.8% during FY23, from 10.8% during FY23. 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 25.1% during FY23, from 16.0% during FY22. 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 14.3% during FY23, from 8.5% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.8	2.3
Debtors’ Days	Days	413	379
Interest coverage	x	8.3	19.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.5	14.3
Return on equity	%	10.8	17.8
Return on capital employed	%	16.0	25.1

To see how RUCHIRA PAPERS has performed over the last 5 years, please visit here.

RUCHIRA PAPERS Share Price Performance

Over the last one year, RUCHIRA PAPERS share price has moved up from Rs 123.5 to Rs 150.1, registering a gain of Rs 26.7 or around 21.6%.

Overall, the S&P BSE SENSEX is up 10.9% over the year.

(To know more, check out historical annual results for RUCHIRA PAPERS and quarterly results for RUCHIRA PAPERS)