MUNJAL AUTO 2021-22 Annual Report Analysis

Tue, 6 Sep

MUNJAL AUTO has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

MUNJAL AUTO Income Statement Analysis

• Operating income during the year fell 9.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.3% in FY22 as against 3.9% in FY21.
• Depreciation charges decreased by 8.4% and finance costs decreased by 24.7% YoY, respectively.
• Other income grew by 2.4% YoY.
• Net profit for the year grew by 44.9% YoY.
• Net profit margins during the year grew from 1.0% in FY21 to 1.5% in FY22.

MUNJAL AUTO Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	21,226	19,157	-9.8%
Other income	Rs m	53	55	2.4%
Total Revenues	Rs m	21,280	19,211	-9.7%
Gross profit	Rs m	825	827	0.3%
Depreciation	Rs m	390	357	-8.4%
Interest	Rs m	156	118	-24.7%
Profit before tax	Rs m	332	407	22.6%
Tax	Rs m	127	111	-13.2%
Profit after tax	Rs m	204	296	44.9%
Gross profit margin	%	3.9	4.3
Effective tax rate	%	38.4	27.2
Net profit margin	%	1.0	1.5

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MUNJAL AUTO Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 5 billion as compared to Rs 4 billion in FY21, thereby witnessing an increase of 22.1%.
• Long-term debt down at Rs 529 million as compared to Rs 792 million during FY21, a fall of 33.2%.
• Current assets rose 25% and stood at Rs 7 billion, while fixed assets fell 9% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 10 billion as against Rs 9 billion during FY21, thereby witnessing a growth of 12%.

MUNJAL AUTO Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	3,105	3,375	8.7
Current Liabilities	Rs m	4,197	5,126	22.1
Long-term Debt	Rs m	792	529	-33.2
Total Liabilities	Rs m	8,563	9,576	11.8
Current assets	Rs m	5,310	6,627	24.8
Fixed Assets	Rs m	3,253	2,949	-9.4
Total Assets	Rs m	8,563	9,576	11.8

MUNJAL AUTO Cash Flow Statement Analysis

• MUNJAL AUTO's cash flow from operating activities (CFO) during FY22 stood at Rs 1 billion, an improvement of 133.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -993 million, an improvement of 608.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -503 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -127 million from the Rs -4 million net cash flows seen during FY21.

MUNJAL AUTO Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	586	1,369	133.8%
Cash Flow from Investing Activities	Rs m	-140	-993	-
Cash Flow from Financing Activities	Rs m	-449	-503	-
Net Cash Flow	Rs m	-4	-127	-

Current Valuations for MUNJAL AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.0, an improvement from the EPS of Rs 2.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 54.6, stands at 7.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 8.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	212.3	191.6
TTM Earnings per share	Rs	2.0	3.0
Diluted earnings per share	Rs	2.0	3.0
Price to Cash Flow	x	9.0	8.6
TTM P/E ratio	x	26.3	7.9
Price / Book Value ratio	x	1.5	1.7
Market Cap	Rs m	4,790	5,640
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for MUNJAL AUTO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY22, from 1.3x during FY21. 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 4.5x during FY22, from 3.1x during FY21. 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 improved and stood at 8.8% during FY22, from 6.6% during FY22. 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 13.4% during FY22, from 12.5% during FY21. 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 improved and stood at 4.3% during FY22, from 4.2% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.3	1.3
Debtors’ Days	Days	659	738
Interest coverage	x	3.1	4.5
Debt to equity ratio	x	0.3	0.2
Return on assets	%	4.2	4.3
Return on equity	%	6.6	8.8
Return on capital employed	%	12.5	13.4

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

MUNJAL AUTO Share Price Performance

Over the last one year, MUNJAL AUTO share price has moved down from Rs 58.3 to Rs 54.6, registering a loss of Rs 3.8 or around 6.4%.

Overall, the S&P BSE SENSEX is up 2.6% over the year.

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

Read: Latest Annual Report Analysis of MUNJAL AUTO