MAN INDUSTRIES 2021-22 Annual Report Analysis

Tue, 4 Oct

MAN INDUSTRIES 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.

MAN INDUSTRIES Income Statement Analysis

• Operating income during the year rose 2.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 11.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.4% in FY22 as against 9.9% in FY21.
• Depreciation charges decreased by 2.1% and finance costs decreased by 29.4% YoY, respectively.
• Other income grew by 20.4% YoY.
• Net profit for the year grew by 0.7% YoY.
• Net profit margins during the year declined from 4.8% in FY21 to 4.7% in FY22.

MAN INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	20,802	21,386	2.8%
Other income	Rs m	308	371	20.4%
Total Revenues	Rs m	21,110	21,757	3.1%
Gross profit	Rs m	2,051	1,806	-11.9%
Depreciation	Rs m	464	454	-2.1%
Interest	Rs m	528	373	-29.4%
Profit before tax	Rs m	1,367	1,350	-1.3%
Tax	Rs m	358	334	-6.9%
Profit after tax	Rs m	1,008	1,016	0.7%
Gross profit margin	%	9.9	8.4
Effective tax rate	%	26.2	24.7
Net profit margin	%	4.8	4.7

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MAN INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 8 billion as compared to Rs 9 billion in FY21, thereby witnessing an decrease of -7.4%.
• Long-term debt stood at Rs 37 million as compared to Rs 20 million during FY21, a growth of 80.4%.
• Current assets rose 1% and stood at Rs 12 billion, while fixed assets rose 4% and stood at Rs 6 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 18 billion as against Rs 18 billion during FY21, thereby witnessing a growth of 2%.

MAN INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	8,300	9,407	13.3
Current Liabilities	Rs m	9,102	8,430	-7.4
Long-term Debt	Rs m	20	37	80.4
Total Liabilities	Rs m	17,859	18,199	1.9
Current assets	Rs m	12,081	12,187	0.9
Fixed Assets	Rs m	5,778	6,012	4.1
Total Assets	Rs m	17,859	18,199	1.9

MAN INDUSTRIES Cash Flow Statement Analysis

• MAN INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 647 million from the Rs -1 billion net cash flows seen during FY21.

MAN INDUSTRIES 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	-599	4,509	-
Cash Flow from Investing Activities	Rs m	43	-1,191	-
Cash Flow from Financing Activities	Rs m	-631	-2,672	-
Net Cash Flow	Rs m	-1,187	647	-

Current Valuations for MAN INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.2, an decline from the EPS of Rs 17.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 94.0, stands at 6.1 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 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 4.5 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	364.3	361.4
TTM Earnings per share	Rs	17.7	17.2
Diluted earnings per share	Rs	16.8	16.9
Price to Cash Flow	x	3.3	4.5
TTM P/E ratio	x	4.8	6.1
Price / Book Value ratio	x	0.4	0.7
Market Cap	Rs m	3,646	6,615
Dividends per share (Unadj.)	Rs	2.0	0.0

Ratio Analysis for MAN INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x 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 4.6x during FY22, from 3.6x 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 declined and down at 10.8% during FY22, from 12.2% 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 declined and down at 18.2% during FY22, from 22.8% 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 declined and down at 7.6% during FY22, from 8.6% 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	1.4
Debtors’ Days	Days	1,151	929
Interest coverage	x	3.6	4.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.6	7.6
Return on equity	%	12.2	10.8
Return on capital employed	%	22.8	18.2

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 down from Rs 112.0 to Rs 94.0, registering a loss of Rs 18.0 or around 16.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 18,386.7 (up 3.0%). Over the last one year it has moved down from 20,846.0 to 18,386.7, a loss of 2,459 points (down 11.8%).

Overall, the S&P BSE SENSEX is down 1.9% 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