Share the post "R&B Denims Reports Q1: Revenue Up by 50.79% Year-on-Year"
Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 50.79 % in the past year, decrease in net sales/revenue by -36.38 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 355.96 %. Marginal decrease of -4.34% in other income during this quarter.
- Profit over the Year and quarter: Challenges in sustaining profitability for R&B Denims Limited. Profit dropped by -0.06 % Year to Year, R&B Denims Limited’s profitability dropped by -30.92 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -16.44 % Year to Year. EPS decreased by -39 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 51.988 Cr | Rs. 123.209 Cr | Rs. 78.391 Cr | -36.38 % | + 50.79 % |
| Expenses | Rs. 40.44 Cr | Rs. 109.65 Cr | Rs. 67.89 Cr | -38.08 % | + 67.88 % |
| Operating Profit | Rs. 11.55 Cr | Rs. 13.56 Cr | Rs. 10.5 Cr | -22.57 % | -9.09 % |
| OPM % | 22.22 % | 11.01 % | 13.39 % | + 2.38 % | -8.83 % |
| Other Income | Rs. 0.445 Cr | Rs. 2.121 Cr | Rs. 2.029 Cr | -4.34 % | + 355.96 % |
| Interest | Rs. 1.23 Cr | Rs. 0.14 Cr | Rs. 1.76 Cr | + 1157.14 % | + 43.09 % |
| Depreciation | Rs. 2.92 Cr | Rs. 5.14 Cr | Rs. 4.18 Cr | -18.68 % | + 43.15 % |
| Profit before tax | Rs. 7.85 Cr | Rs. 10.4 Cr | Rs. 6.59 Cr | -36.63 % | -16.05 % |
| Tax % | 34.6 % | 28.66 % | 22.21 % | -6.45 % | -12.39 % |
| Net Profit | Rs. 5.13 Cr | Rs. 7.42 Cr | Rs. 5.13 Cr | -30.86 % | + 0 % |
| EPS in Rs | Rs. 0.73 | Rs. 1 | Rs. 0.61 | -39 % | -16.44 % |
Today, we’re looking at R&B Denims Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 50.79 %. However, it did see a marginal slip of -36.38 % from the previous quarter. Expenses decreased slightly by -38.08 % quarter-on-quarter, aligning with the annual rise of 67.88 %. Operating profit, while down -9.09 % compared to last year, faced a quarter-on-quarter dip of -22.57 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -8.83 %, but an expansion of 2.38 % sequentially. Other income fell by -4.34 % compared to the last quarter, despite an annual growth of 355.96 %. Interest expenses surged remarkably by 1157.14 % from the previous quarter, yet the year-over-year increase remains at a moderate 43.09 %. Depreciation costs fell by -18.68 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 43.15 %. Profit before tax declined annually by -16.05 % but saw a reduction from the preceding quarter by -36.63 %.
Tax expenses as a percentage of profits decreased slightly by -12.39 % compared to last year, with a more notable quarter-on-quarter decrease of -6.45 %. Net profit rose by 0 % year-on-year but witnessed a -30.86 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -16.44 % but a quarterly fall of -39 %. In summary, R&B Denims Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 51.988 Cr | Rs. 123.209 Cr | Rs. 78.391 Cr | -36.38 % | + 50.79 % |
| Expenses | Rs. 40.44 Cr | Rs. 109.65 Cr | Rs. 67.89 Cr | -38.08 % | + 67.88 % |
| Operating Profit | Rs. 11.55 Cr | Rs. 13.56 Cr | Rs. 10.5 Cr | -22.57 % | -9.09 % |
| Net Profit | Rs. 5.13 Cr | Rs. 7.42 Cr | Rs. 5.13 Cr | -30.86 % | + 0 % |
| EPS in Rs | Rs. 0.73 | Rs. 1 | Rs. 0.61 | -39 % | -16.44 % |
In reviewing R&B Denims Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 50.79 % year-on-year growth, although there was a slight dip of -36.38 % from the previous quarter. Expenses rose by 67.88 % compared to the previous year, with a decrease of -38.08 % quarter-on-quarter. Operating Profit dropped by -9.09 % annually, and saw a -22.57 % decrease from the last quarter.
Net Profit showed yearly increase of 0 %, and experienced a -30.86 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -16.44 % annually, however dipped by -39 % compared to the last quarter. In essence, while R&B Denims Limited faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
54
3-Year Profit
42
5-Year Profit
51
10-Year Profit
157
Current Price
3,820
Market Cap
For the company identified by BSE code 532406, the financial performance highlights a solid five-year profit of 42 percents. This figure escalates to 54 percents over the three-year period, pointing to positive momentum in its earnings. Despite these encouraging trends, the trailing twelve-month (TTM) figures uncover an alarming profit loss of 42 percents. This decline, coupled with the fact that the company recorded zero sales across all periods examined, raises red flags about the sustainability of its business model and its ability to generate consistent revenue. Furthermore, the stock price fluctuations during this period further reflect the company's uncertain position. The stock started at 112 percents but has since plummeted to 47 percents recently, painting a picture of rapid decline. Over a longer ten-year horizon, the stock price stood at 49 percents, further underscoring the long-term challenges the company faces in maintaining investor confidence and market value.
Currently valued at ₹3,820 crore, the company's stock price stands at ₹157. Over the years, it has seen significant fluctuations, with its price ranging from ₹224 / 86.0, a reflection of its sensitivity to market conditions and investor sentiment. The stock's Price-to-Earnings (P/E) ratio, currently at 65.0, suggests that it is highly valued in comparison to its earnings, possibly indicating strong future growth expectations or a high level of investor confidence. The book value per share is ₹8.09, which represents the net asset value of the company per share. The dividend yield of 0.12% provides some return to investors, though it may not be the primary attraction for those investing in the stock. The company's Return on Capital Employed (ROCE) is 47.4%, pointing to efficient use of its capital base to generate profits. The Return on Equity (ROE), at 38.7%, highlights the profitability for shareholders. The company's financial health is further underscored by its very low debt-to-equity ratio of 0.09, signaling conservative financial management. However, the net cash flow is negative at ₹0.86 crore, indicating possible liquidity concerns or heavy investment. The Piotroski score of 8.00 provides a snapshot of its financial stability, while the Graham Number, estimated at ₹21.0, offers an intrinsic value benchmark. With a Price-to-Book (P/B) ratio of 19.4, the stock seems to be trading at a premium relative to its book value, which could signal strong market expectations or overvaluation risks.
