MAN INDUSTRIES 2022-23 Annual Report Analysis

Fri, 31 Mar

MAN INDUSTRIES 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.

MAN INDUSTRIES Income Statement Analysis

• Operating income during the year rose 4.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 30.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.6% in FY23 as against 8.4% in FY22.
• Depreciation charges decreased by 0.1% and finance costs increased by 10.0% YoY, respectively.
• Other income grew by 39.9% YoY.
• Net profit for the year declined by 33.1% YoY.
• Net profit margins during the year declined from 4.7% in FY22 to 3.0% in FY23.

MAN INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	21,386	22,313	4.3%
Other income	Rs m	371	519	39.9%
Total Revenues	Rs m	21,757	22,832	4.9%
Gross profit	Rs m	1,806	1,249	-30.9%
Depreciation	Rs m	454	453	-0.1%
Interest	Rs m	373	410	10.0%
Profit before tax	Rs m	1,350	904	-33.0%
Tax	Rs m	334	224	-33.0%
Profit after tax	Rs m	1,016	680	-33.1%
Gross profit margin	%	8.4	5.6
Effective tax rate	%	24.7	24.8
Net profit margin	%	4.7	3.0

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MAN INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 6 billion as compared to Rs 8 billion in FY22, thereby witnessing an decrease of -33.0%.
• Long-term debt stood at Rs 1 billion as compared to Rs 37 million during FY22, a growth of 3390.4%.
• Current assets fell 23% and stood at Rs 9 billion, while fixed assets rose 31% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 17 billion as against Rs 18 billion during FY22, thereby witnessing a fall of 5%.

MAN INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	9,407	10,042	6.8
Current Liabilities	Rs m	8,430	5,645	-33.0
Long-term Debt	Rs m	37	1,279	3,390.4
Total Liabilities	Rs m	18,199	17,279	-5.1
Current assets	Rs m	12,187	9,399	-22.9
Fixed Assets	Rs m	6,012	7,880	31.1
Total Assets	Rs m	18,199	17,279	-5.1

MAN INDUSTRIES Cash Flow Statement Analysis

• MAN INDUSTRIES'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 -1 billion, an improvement of 13.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 178% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -451 million from the Rs 647 million net cash flows seen during FY22.

MAN INDUSTRIES 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	4,509	-1,187	-
Cash Flow from Investing Activities	Rs m	-1,191	-1,355	-
Cash Flow from Financing Activities	Rs m	-2,672	2,092	-
Net Cash Flow	Rs m	647	-451	-

Current Valuations for MAN INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.3, an decline from the EPS of Rs 17.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 93.0, stands at 8.2 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 4.7 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	361.4	371.3
TTM Earnings per share	Rs	17.2	11.3
Diluted earnings per share	Rs	16.9	11.3
Price to Cash Flow	x	3.9	4.7
TTM P/E ratio	x	5.7	8.2
Price / Book Value ratio	x	0.7	0.5
Market Cap	Rs m	6,615	5,297
Dividends per share (Unadj.)	Rs	0.0	2.0

Ratio Analysis for MAN INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY23, from 1.4x 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 3.2x during FY23, from 4.6x 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 declined and down at 6.8% during FY23, from 10.8% 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 declined and down at 11.6% during FY23, from 18.2% 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 6.3% during FY23, from 7.6% 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	1.4	1.7
Debtors’ Days	Days	929	808
Interest coverage	x	4.6	3.2
Debt to equity ratio	x	0.0	0.1
Return on assets	%	7.6	6.3
Return on equity	%	10.8	6.8
Return on capital employed	%	18.2	11.6

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 95.6 to Rs 93.0, registering a loss of Rs 2.6 or around 2.7%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,184.9 (up 0.6%). Over the last one year it has moved down from 22,368.3 to 19,184.9, a loss of 3,183 points (down 14.2%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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