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MAHINDRA EPC IRRIGATION 2022-23 Annual Report Analysis

Mon, 17 Jul

MAHINDRA EPC IRRIGATION 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.

MAHINDRA EPC IRRIGATION Income Statement Analysis

• Operating income during the year fell 0.7% 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 6.4% in FY23 as against 2.8% in FY22.
• Depreciation charges decreased by 2.5% and finance costs increased by 12.1% YoY, respectively.
• Other income grew by 500.0% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 3.7% in FY22 to 5.9% in FY23.

MAHINDRA EPC IRRIGATION Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,119	2,104	-0.7%
Other income	Rs m	5	28	500.0%
Total Revenues	Rs m	2,124	2,131	0.3%
Gross profit	Rs m	-58	-135	NA
Depreciation	Rs m	32	31	-2.5%
Interest	Rs m	20	22	12.1%
Profit before tax	Rs m	-105	-160	NA
Tax	Rs m	-26	-37	NA
Profit after tax	Rs m	-79	-123	NA
Gross profit margin	%	-2.8	-6.4
Effective tax rate	%	24.8	23.2
Net profit margin	%	-3.7	-5.9

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MAHINDRA EPC IRRIGATION Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 893 million as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -13.9%.
• Current assets fell 3% and stood at Rs 2 billion, while fixed assets fell 34% and stood at Rs 448 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 3 billion during FY22, thereby witnessing a fall of 11%.

MAHINDRA EPC IRRIGATION Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,741	1,627	-6.5
Current Liabilities	Rs m	1,037	893	-13.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,715	2,412	-11.2
Current assets	Rs m	2,035	1,964	-3.5
Fixed Assets	Rs m	680	448	-34.2
Total Assets	Rs m	2,715	2,412	-11.2

MAHINDRA EPC IRRIGATION Cash Flow Statement Analysis

• MAHINDRA EPC IRRIGATION's cash flow from operating activities (CFO) during FY23 stood at Rs 190 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -24 million, an improvement of 150.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -123 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 44 million from the Rs -44 million net cash flows seen during FY22.

MAHINDRA EPC IRRIGATION 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	-231	190	-
Cash Flow from Investing Activities	Rs m	-10	-24	-
Cash Flow from Financing Activities	Rs m	197	-123	-
Net Cash Flow	Rs m	-44	44	-

Current Valuations for MAHINDRA EPC IRRIGATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.4, an decline from the EPS of Rs -2.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 118.9, stands at -27.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at -31.0 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	76.1	75.4
TTM Earnings per share	Rs	-2.8	-4.4
Diluted earnings per share	Rs	-2.8	-4.4
Price to Cash Flow	x	-53.2	-31.0
TTM P/E ratio	x	-33.7	-27.6
Price / Book Value ratio	x	2.1	1.8
Market Cap	Rs m	3,661	2,864
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MAHINDRA EPC IRRIGATION

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY23, from 2.0x 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 -6.2x during FY23, from -4.3x 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 declined and down at -7.6% during FY23, from -4.5% 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 -8.5% during FY23, from -4.9% 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 -4.2% during FY23, from -2.2% 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	2.0	2.2
Debtors’ Days	Days	24	20
Interest coverage	x	-4.3	-6.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-2.2	-4.2
Return on equity	%	-4.5	-7.6
Return on capital employed	%	-4.9	-8.5

To see how MAHINDRA EPC IRRIGATION has performed over the last 5 years, please visit here.

MAHINDRA EPC IRRIGATION Share Price Performance

Over the last one year, MAHINDRA EPC IRRIGATION share price has moved up from Rs 101.1 to Rs 118.9, registering a gain of Rs 17.8 or around 17.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 41,426.7 (up 0.2%). Over the last one year it has moved up from 27,634.8 to 41,426.7, a gain of 13,792 points (up 49.9%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for MAHINDRA EPC IRRIGATION and quarterly results for MAHINDRA EPC IRRIGATION)