MAHINDRA LIFESPACE 2022-23 Annual Report Analysis

Sun, 9 Jul

MAHINDRA LIFESPACE 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 LIFESPACE Income Statement Analysis

• Operating income during the year rose 54.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 22.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.5% in FY23 as against 24.8% in FY22.
• Depreciation charges increased by 87.6% and finance costs increased by 67.5% YoY, respectively.
• Other income grew by 260.6% YoY.
• Net profit for the year declined by 36.4% YoY.
• Net profit margins during the year declined from 41.1% in FY22 to 17.0% in FY23.

MAHINDRA LIFESPACE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,936	6,066	54.1%
Other income	Rs m	147	530	260.6%
Total Revenues	Rs m	4,082	6,596	61.6%
Gross profit	Rs m	976	758	-22.3%
Depreciation	Rs m	65	122	87.6%
Interest	Rs m	65	109	67.5%
Profit before tax	Rs m	993	1,057	6.4%
Tax	Rs m	-624	28	NA
Profit after tax	Rs m	1,617	1,028	-36.4%
Gross profit margin	%	24.8	12.5
Effective tax rate	%	-62.9	2.7
Net profit margin	%	41.1	17.0

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MAHINDRA LIFESPACE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 18 billion as compared to Rs 11 billion in FY22, thereby witnessing an increase of 58.4%.
• Long-term debt down at Rs 77 million as compared to Rs 601 million during FY22, a fall of 87.2%.
• Current assets rose 27% and stood at Rs 27 billion, while fixed assets rose 1% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 36 billion as against Rs 30 billion during FY22, thereby witnessing a growth of 20%.

MAHINDRA LIFESPACE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	17,841	18,023	1.0
Current Liabilities	Rs m	11,306	17,907	58.4
Long-term Debt	Rs m	601	77	-87.2
Total Liabilities	Rs m	29,585	35,515	20.0
Current assets	Rs m	21,366	27,183	27.2
Fixed Assets	Rs m	8,220	8,333	1.4
Total Assets	Rs m	29,585	35,515	20.0

MAHINDRA LIFESPACE Cash Flow Statement Analysis

• MAHINDRA LIFESPACE 's cash flow from operating activities (CFO) during FY23 stood at Rs -1 billion, an improvement of 185.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 278 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -271 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs 834 million net cash flows seen during FY22.

MAHINDRA LIFESPACE 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	-520	-1,484	-
Cash Flow from Investing Activities	Rs m	1,232	278	-77.4%
Cash Flow from Financing Activities	Rs m	122	-271	-
Net Cash Flow	Rs m	834	-1,490	-

Current Valuations for MAHINDRA LIFESPACE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.6, an decline from the EPS of Rs 10.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 475.1, stands at -481.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 12.1 times.
• The company's price to cash flow (P/CF) ratio stood at 58.1 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	25.5	39.2
TTM Earnings per share	Rs	10.5	6.6
Diluted earnings per share	Rs	10.4	6.6
Price to Cash Flow	x	36.5	58.1
TTM P/E ratio	x	86.0	-481.1
Price / Book Value ratio	x	4.8	3.7
Market Cap	Rs m	85,031	66,789
Dividends per share (Unadj.)	Rs	2.0	2.3

Ratio Analysis for MAHINDRA LIFESPACE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 1.9x 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 10.7x during FY23, from 16.2x 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 5.7% during FY23, from 9.1% 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 improved and stood at 6.4% during FY23, from 5.7% 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 3.2% during FY23, from 5.7% 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	1.9	1.5
Debtors’ Days	Days	852	777
Interest coverage	x	16.2	10.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.7	3.2
Return on equity	%	9.1	5.7
Return on capital employed	%	5.7	6.4

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

MAHINDRA LIFESPACE Share Price Performance

Over the last one year, MAHINDRA LIFESPACE share price has moved up from Rs 423.9 to Rs 475.1, registering a gain of Rs 51.2 or around 12.1%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,251.3 (down 1.2%). Over the last one year it has moved up from 3,274.7 to 4,251.3, a gain of 977 points (up 29.8%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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