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RIR POWER ELECTRONICS 2023-24 Annual Report Analysis

Wed, 16 Oct

RIR POWER ELECTRONICS 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.

RIR POWER ELECTRONICS Income Statement Analysis

• Operating income during the year rose 16.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.8% in FY24 as against 14.1% in FY23.
• Depreciation charges decreased by 9.7% and finance costs increased by 19.1% YoY, respectively.
• Other income declined by 7.5% YoY.
• Net profit for the year grew by 17.7% YoY.
• Net profit margins during the year grew from 10.4% in FY23 to 10.5% in FY24.

RIR POWER ELECTRONICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	573	668	16.4%
Other income	Rs m	21	19	-7.5%
Total Revenues	Rs m	594	687	15.6%
Gross profit	Rs m	81	99	22.4%
Depreciation	Rs m	12	11	-9.7%
Interest	Rs m	10	12	19.1%
Profit before tax	Rs m	79	95	19.8%
Tax	Rs m	20	25	26.0%
Profit after tax	Rs m	60	70	17.7%
Gross profit margin	%	14.1	14.8
Effective tax rate	%	24.8	26.1
Net profit margin	%	10.4	10.5

For Investors: Our Big Prediction

RIR POWER ELECTRONICS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 275 million as compared to Rs 233 million in FY23, thereby witnessing an increase of 18.3%.
• Long-term debt down at Rs 223 million as compared to Rs 223 million during FY23, a fall of 0.0%.
• Current assets rose 65% and stood at Rs 785 million, while fixed assets rose 9% and stood at Rs 349 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 795 million during FY23, thereby witnessing a growth of 43%.

RIR POWER ELECTRONICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	330	415	25.5
Current Liabilities	Rs m	233	275	18.3
Long-term Debt	Rs m	223	223	0.0
Total Liabilities	Rs m	795	1,134	42.7
Current assets	Rs m	476	785	65.0
Fixed Assets	Rs m	319	349	9.4
Total Assets	Rs m	795	1,134	42.7

RIR POWER ELECTRONICS Cash Flow Statement Analysis

• RIR POWER ELECTRONICS's cash flow from operating activities (CFO) during FY24 stood at Rs 16 million, an improvement of 114.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -38 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 238 million, an improvement of 664% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 216 million from the Rs 0 million net cash flows seen during FY23.

RIR POWER ELECTRONICS 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	7	16	114.5%
Cash Flow from Investing Activities	Rs m	-38	-38	-
Cash Flow from Financing Activities	Rs m	31	238	663.9%
Net Cash Flow	Rs m	0	216	196,218.2%

Current Valuations for RIR POWER ELECTRONICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.1, an improvement from the EPS of Rs 8.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,780.0, stands at 359.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 67.1 times, while the price to sales ratio stands at 39.4 times.
• The company's price to cash flow (P/CF) ratio stood at 57.1 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	83.0	95.9
TTM Earnings per share	Rs	8.6	10.1
Diluted earnings per share	Rs	8.1	9.6
Price to Cash Flow	x	30.9	57.1
TTM P/E ratio	x	35.4	359.1
Price / Book Value ratio	x	6.2	11.2
Market Cap	Rs m	2,049	4,627
Dividends per share (Unadj.)	Rs	1.5	2.0

Ratio Analysis for RIR POWER ELECTRONICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY24, from 2.0x 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 8.6x during FY24, from 8.6x 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 17.0% during FY24, from 18.1% 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 16.9% during FY24, from 16.2% 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 7.3% during FY24, from 8.8% 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	2.0	2.9
Debtors’ Days	Days	1,047	1,056
Interest coverage	x	8.6	8.6
Debt to equity ratio	x	0.7	0.5
Return on assets	%	8.8	7.3
Return on equity	%	18.1	17.0
Return on capital employed	%	16.2	16.9

To see how RIR POWER ELECTRONICS has performed over the last 5 years, please visit here.

RIR POWER ELECTRONICS Share Price Performance

Over the last one year, RIR POWER ELECTRONICS share price has moved up from Rs 611.3 to Rs 3,780.0, registering a gain of Rs 3,168.7 or around 518.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,632.6 (up 0.4%). Over the last one year it has moved up from 48,111.6 to 72,632.6, a gain of 24,521 points (up 51.0%).

Overall, the S&P BSE SENSEX is up 23.6% over the year.

(To know more, check out historical annual results for RIR POWER ELECTRONICS and quarterly results for RIR POWER ELECTRONICS)