MAMAEARTH 2022-23 Annual Report Analysis

Fri, 31 Mar

MAMAEARTH 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.

MAMAEARTH Income Statement Analysis

• Operating income during the year rose 58.2% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 8.8% in FY23 as against 1.2% in FY22.
• Depreciation charges increased by 262.1% and finance costs increased by 121.7% YoY, respectively.
• Other income grew by 7.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 1.5% in FY22 to 10.1% in FY23.

MAMAEARTH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,435	14,927	58.2%
Other income	Rs m	209	225	7.9%
Total Revenues	Rs m	9,643	15,153	57.1%
Gross profit	Rs m	115	-1,319	NA
Depreciation	Rs m	69	250	262.1%
Interest	Rs m	30	67	121.7%
Profit before tax	Rs m	224	-1,410	NA
Tax	Rs m	80	99	24.1%
Profit after tax	Rs m	144	-1,510	NA
Gross profit margin	%	1.2	-8.8
Effective tax rate	%	35.6	-7.0
Net profit margin	%	1.5	-10.1

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MAMAEARTH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 34.4%.
• Current assets rose 5% and stood at Rs 6 billion, while fixed assets fell 22% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 10 billion as against Rs 10 billion during FY22, thereby witnessing a fall of 7%.

MAMAEARTH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,849	5,554	-18.9
Current Liabilities	Rs m	2,076	2,791	34.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	10,350	9,664	-6.6
Current assets	Rs m	6,020	6,304	4.7
Fixed Assets	Rs m	4,330	3,360	-22.4
Total Assets	Rs m	10,350	9,664	-6.6

MAMAEARTH Cash Flow Statement Analysis

• MAMAEARTH's cash flow from operating activities (CFO) during FY23 stood at Rs -516 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 429 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -141 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -257 million from the Rs 206 million net cash flows seen during FY22.

MAMAEARTH 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	446	-516	-
Cash Flow from Investing Activities	Rs m	-4,998	429	-
Cash Flow from Financing Activities	Rs m	4,808	-141	-
Net Cash Flow	Rs m	206	-257	-

Current Valuations for MAMAEARTH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -11.1, an decline from the EPS of Rs 14,443.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 0.0, stands at 0.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.0 times.
• The company's price to cash flow (P/CF) ratio stood at 0.0 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	943,465.0	109.5
TTM Earnings per share	Rs	14,443.0	-11.1
Diluted earnings per share	Rs	0.4	-4.7
Price to Cash Flow	x	0.0	0.0
TTM P/E ratio	x	0.0	0.0
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	0
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MAMAEARTH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY23, from 2.9x 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 deteriorated and stood at -20.2x during FY23, from 8.5x 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 declined and down at -27.2% during FY23, from 2.1% 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 declined and down at -24.2% during FY23, from 3.7% 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 declined and down at -14.9% during FY23, from 1.7% 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	2.9	2.3
Debtors’ Days	Days	28	31
Interest coverage	x	8.5	-20.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.7	-14.9
Return on equity	%	2.1	-27.2
Return on capital employed	%	3.7	-24.2

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

MAMAEARTH Share Price Performance

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