MAGADH SUGAR & ENERGY 2022-23 Annual Report Analysis

Mon, 10 Jul

MAGADH SUGAR & ENERGY 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.

MAGADH SUGAR & ENERGY Income Statement Analysis

• Operating income during the year fell 4.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.7% in FY23 as against 12.4% in FY22.
• Depreciation charges increased by 20.4% and finance costs decreased by 23.7% YoY, respectively.
• Other income declined by 41.0% YoY.
• Net profit for the year grew by 9.2% YoY.
• Net profit margins during the year grew from 4.6% in FY22 to 5.3% in FY23.

MAGADH SUGAR & ENERGY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,951	9,534	-4.2%
Other income	Rs m	33	19	-41.0%
Total Revenues	Rs m	9,983	9,553	-4.3%
Gross profit	Rs m	1,239	1,307	5.5%
Depreciation	Rs m	209	252	20.4%
Interest	Rs m	398	304	-23.7%
Profit before tax	Rs m	664	771	16.0%
Tax	Rs m	204	268	31.3%
Profit after tax	Rs m	460	503	9.2%
Gross profit margin	%	12.4	13.7
Effective tax rate	%	30.7	34.8
Net profit margin	%	4.6	5.3

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MAGADH SUGAR & ENERGY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 4.5%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY22, a fall of 11.2%.
• Current assets rose 15% and stood at Rs 6 billion, while fixed assets fell 2% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 14 billion during FY22, thereby witnessing a growth of 5%.

MAGADH SUGAR & ENERGY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,983	6,394	6.9
Current Liabilities	Rs m	5,872	6,138	4.5
Long-term Debt	Rs m	1,378	1,224	-11.2
Total Liabilities	Rs m	13,634	14,303	4.9
Current assets	Rs m	5,535	6,362	14.9
Fixed Assets	Rs m	8,099	7,940	-2.0
Total Assets	Rs m	13,634	14,303	4.9

MAGADH SUGAR & ENERGY Cash Flow Statement Analysis

• MAGADH SUGAR & ENERGY's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -209 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -940 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 million from the Rs -2 million net cash flows seen during FY22.

MAGADH SUGAR & ENERGY 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	1,468	1,148	-21.8%
Cash Flow from Investing Activities	Rs m	-1,058	-209	-
Cash Flow from Financing Activities	Rs m	-412	-940	-
Net Cash Flow	Rs m	-2	-1	-

Current Valuations for MAGADH SUGAR & ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.7, an improvement from the EPS of Rs 32.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 416.5, stands at 11.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 6.6 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	706.2	676.7
TTM Earnings per share	Rs	32.7	35.7
Diluted earnings per share	Rs	32.7	35.7
Price to Cash Flow	x	6.6	6.6
TTM P/E ratio	x	9.6	11.7
Price / Book Value ratio	x	0.6	0.8
Market Cap	Rs m	3,391	4,953
Dividends per share (Unadj.)	Rs	6.5	7.0

Ratio Analysis for MAGADH SUGAR & ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY23, from 0.9x 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 improved and stood at 3.5x during FY23, from 2.7x 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 7.9% during FY23, from 7.7% 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 14.1% during FY23, from 14.4% 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 declined and down at 5.6% during FY23, from 6.3% 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	0.9	1.0
Debtors’ Days	Days	179	132
Interest coverage	x	2.7	3.5
Debt to equity ratio	x	0.2	0.2
Return on assets	%	6.3	5.6
Return on equity	%	7.7	7.9
Return on capital employed	%	14.4	14.1

To see how MAGADH SUGAR & ENERGY has performed over the last 5 years, please visit here.

MAGADH SUGAR & ENERGY Share Price Performance

Over the last one year, MAGADH SUGAR & ENERGY share price has moved up from Rs 339.2 to Rs 416.5, registering a gain of Rs 77.3 or around 22.8%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for MAGADH SUGAR & ENERGY and quarterly results for MAGADH SUGAR & ENERGY)