MUNJAL AUTO 2022-23 Annual Report Analysis

Wed, 16 Aug

MUNJAL AUTO 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.

MUNJAL AUTO Income Statement Analysis

• Operating income during the year rose 3.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 66.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.9% in FY23 as against 4.3% in FY22.
• Depreciation charges increased by 48.3% and finance costs increased by 130.0% YoY, respectively.
• Other income grew by 133.6% YoY.
• Net profit for the year grew by 74.3% YoY.
• Net profit margins during the year grew from 1.5% in FY22 to 2.6% in FY23.

MUNJAL AUTO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	19,157	19,843	3.6%
Other income	Rs m	55	127	133.6%
Total Revenues	Rs m	19,211	19,970	4.0%
Gross profit	Rs m	827	1,376	66.3%
Depreciation	Rs m	357	530	48.3%
Interest	Rs m	118	271	130.0%
Profit before tax	Rs m	407	703	72.7%
Tax	Rs m	111	186	68.5%
Profit after tax	Rs m	296	516	74.3%
Gross profit margin	%	4.3	6.9
Effective tax rate	%	27.2	26.5
Net profit margin	%	1.5	2.6

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MUNJAL AUTO Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 25.2%.
• Long-term debt down at Rs 319 million as compared to Rs 529 million during FY22, a fall of 39.8%.
• Current assets rose 23% and stood at Rs 8 billion, while fixed assets rose 55% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 13 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 32%.

MUNJAL AUTO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,375	3,843	13.9
Current Liabilities	Rs m	5,126	6,417	25.2
Long-term Debt	Rs m	529	319	-39.8
Total Liabilities	Rs m	9,576	12,665	32.3
Current assets	Rs m	6,492	7,986	23.0
Fixed Assets	Rs m	2,949	4,562	54.7
Total Assets	Rs m	9,576	12,665	32.3

MUNJAL AUTO Cash Flow Statement Analysis

• MUNJAL AUTO's cash flow from operating activities (CFO) during FY23 stood at Rs 334 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 371 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -649 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 56 million from the Rs -127 million net cash flows seen during FY22.

MUNJAL AUTO 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	1,369	334	-75.6%
Cash Flow from Investing Activities	Rs m	-993	371	-
Cash Flow from Financing Activities	Rs m	-503	-649	-
Net Cash Flow	Rs m	-127	56	-

Current Valuations for MUNJAL AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.2, an improvement from the EPS of Rs 3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 59.9, stands at 36.2 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 4.4 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	191.6	198.4
TTM Earnings per share	Rs	3.0	5.2
Diluted earnings per share	Rs	3.0	5.2
Price to Cash Flow	x	6.3	4.4
TTM P/E ratio	x	13.8	36.2
Price / Book Value ratio	x	1.7	1.2
Market Cap	Rs m	5,640	4,628
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for MUNJAL AUTO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.3x 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 3.6x during FY23, from 4.5x 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 improved and stood at 13.4% during FY23, from 8.8% 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 23.4% during FY23, from 13.4% 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 improved and stood at 6.2% during FY23, from 4.3% 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	1.3	1.2
Debtors’ Days	Days	738	804
Interest coverage	x	4.5	3.6
Debt to equity ratio	x	0.2	0.1
Return on assets	%	4.3	6.2
Return on equity	%	8.8	13.4
Return on capital employed	%	13.4	23.4

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 up from Rs 50.8 to Rs 59.9, registering a gain of Rs 9.2 or around 18.1%.

Overall, the S&P BSE SENSEX is up 10.2% over the year.

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