MAN INDUSTRIES 2020-21 Annual Report Analysis

Wed, 31 Mar

MAN INDUSTRIES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

MAN INDUSTRIES Income Statement Analysis

• Operating income during the year rose 18.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.9% in FY21 as against 9.4% in FY20.
• Depreciation charges decreased by 11.4% and finance costs decreased by 18.1% YoY, respectively.
• Other income grew by 81.3% YoY.
• Net profit for the year grew by 81.7% YoY.
• Net profit margins during the year grew from 3.2% in FY20 to 4.8% in FY21.

MAN INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	17,593	20,802	18.2%
Other income	Rs m	170	308	81.3%
Total Revenues	Rs m	17,762	21,110	18.8%
Gross profit	Rs m	1,650	2,051	24.3%
Depreciation	Rs m	523	464	-11.4%
Interest	Rs m	644	527	-18.1%
Profit before tax	Rs m	653	1,367	109.5%
Tax	Rs m	98	358	267.5%
Profit after tax	Rs m	555	1,008	81.7%
Gross profit margin	%	9.4	9.9
Effective tax rate	%	14.9	26.2
Net profit margin	%	3.2	4.8

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MAN INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 9 billion as compared to Rs 10 billion in FY20, thereby witnessing an decrease of -11.0%.
• Long-term debt down at Rs 20 million as compared to Rs 153 million during FY20, a fall of 86.8%.
• Current assets rose 3% and stood at Rs 12 billion, while fixed assets fell 11% and stood at Rs 6 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 18 billion as against Rs 18 billion during FY20, thereby witnessing a fall of 2%.

MAN INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	7,464	8,300	11.2
Current Liabilities	Rs m	10,222	9,102	-11.0
Long-term Debt	Rs m	153	20	-86.8
Total Liabilities	Rs m	18,272	17,859	-2.3
Current assets	Rs m	11,784	12,081	2.5
Fixed Assets	Rs m	6,488	5,778	-10.9
Total Assets	Rs m	18,272	17,859	-2.3

MAN INDUSTRIES Cash Flow Statement Analysis

• MAN INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs -599 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 43 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -631 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -1 billion from the Rs 1 billion net cash flows seen during FY20.

MAN INDUSTRIES Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	2,143	-599	-
Cash Flow from Investing Activities	Rs m	-463	43	-
Cash Flow from Financing Activities	Rs m	-369	-631	-
Net Cash Flow	Rs m	1,311	-1,187	-

Current Valuations for MAN INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.7, an improvement from the EPS of Rs 9.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 79.8, stands at 4.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 2.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	308.1	364.3
TTM Earnings per share	Rs	9.7	17.7
Diluted earnings per share	Rs	9.2	16.8
Price to Cash Flow	x	2.3	2.5
TTM P/E ratio	x	5.3	4.8
Price / Book Value ratio	x	0.4	0.4
Market Cap	Rs m	3,006	3,646
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for MAN INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY21, from 1.2x during FY20. 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 3.6x during FY21, from 2.0x during FY20. 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 12.2% during FY21, from 7.4% during FY21. 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 22.8% during FY21, from 17.0% during FY20. 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 8.6% during FY21, from 6.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.2	1.3
Debtors’ Days	Days	934	1,151
Interest coverage	x	2.0	3.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.6	8.6
Return on equity	%	7.4	12.2
Return on capital employed	%	17.0	22.8

To see how MAN INDUSTRIES has performed over the last 5 years, please visit here.

MAN INDUSTRIES Share Price Performance

Over the last one year, MAN INDUSTRIES share price has moved up from Rs 41.0 to Rs 79.8, registering a gain of Rs 38.9 or around 94.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for MAN INDUSTRIES and quarterly results for MAN INDUSTRIES)

Read: Latest Annual Report Analysis of MAN INDUSTRIES