MANORAMA INDUSTRIES 2021-22 Annual Report Analysis

Thu, 8 Sep

MANORAMA 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.

MANORAMA INDUSTRIES Income Statement Analysis

• Operating income during the year rose 37.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.0% in FY22 as against 17.1% in FY21.
• Depreciation charges decreased by 0.8% and finance costs decreased by 45.0% YoY, respectively.
• Other income grew by 34.1% YoY.
• Net profit for the year grew by 65.6% YoY.
• Net profit margins during the year grew from 7.2% in FY21 to 8.7% in FY22.

MANORAMA INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,026	2,791	37.8%
Other income	Rs m	61	82	34.1%
Total Revenues	Rs m	2,088	2,874	37.6%
Gross profit	Rs m	347	389	12.3%
Depreciation	Rs m	80	79	-0.8%
Interest	Rs m	105	58	-45.0%
Profit before tax	Rs m	224	335	49.9%
Tax	Rs m	78	94	20.4%
Profit after tax	Rs m	146	241	65.6%
Gross profit margin	%	17.1	14.0
Effective tax rate	%	34.8	28.0
Net profit margin	%	7.2	8.7

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MANORAMA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 946 million as compared to Rs 915 million in FY21, thereby witnessing an increase of 3.4%.
• Long-term debt stood at Rs 298 million as compared to Rs 151 million during FY21, a growth of 98.2%.
• Current assets rose 55% and stood at Rs 3 billion, while fixed assets rose 59% and stood at Rs 1 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 4 billion as against Rs 3 billion during FY21, thereby witnessing a growth of 56%.

MANORAMA INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,447	2,683	85.4
Current Liabilities	Rs m	915	946	3.4
Long-term Debt	Rs m	151	298	98.2
Total Liabilities	Rs m	2,539	3,958	55.9
Current assets	Rs m	1,801	2,789	54.8
Fixed Assets	Rs m	737	1,169	58.6
Total Assets	Rs m	2,539	3,958	55.9

MANORAMA INDUSTRIES Cash Flow Statement Analysis

• MANORAMA INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs -334 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -345 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 1 billion, an improvement of 362% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 488 million from the Rs -2 million net cash flows seen during FY21.

MANORAMA 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	335	-334	-
Cash Flow from Investing Activities	Rs m	109	-345	-
Cash Flow from Financing Activities	Rs m	-446	1,167	-
Net Cash Flow	Rs m	-2	488	-

Current Valuations for MANORAMA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.3, an improvement from the EPS of Rs 13.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,261.0, stands at 58.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.6 times, while the price to sales ratio stands at 5.4 times.
• The company's price to cash flow (P/CF) ratio stood at 50.8 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	182.1	234.2
TTM Earnings per share	Rs	13.1	20.3
Diluted earnings per share	Rs	12.2	20.3
Price to Cash Flow	x	42.8	50.8
TTM P/E ratio	x	66.1	58.8
Price / Book Value ratio	x	4.4	6.1
Market Cap	Rs m	6,410	16,288
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MANORAMA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY22, from 2.0x 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 6.8x during FY22, from 3.1x 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 9.0% during FY22, from 10.1% 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 13.2% during FY22, from 20.6% 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 9.9% 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	2.0	2.9
Debtors’ Days	Days	403	328
Interest coverage	x	3.1	6.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.9	7.6
Return on equity	%	10.1	9.0
Return on capital employed	%	20.6	13.2

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

MANORAMA INDUSTRIES Share Price Performance

Over the last one year, MANORAMA INDUSTRIES share price has moved down from Rs 1,417.4 to Rs 1,261.0, registering a loss of Rs 156.4 or around 11.0%.

Overall, the S&P BSE SENSEX is up 2.4% over the year.

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

Read: Latest Annual Report Analysis of MANORAMA INDUSTRIES