MANORAMA INDUSTRIES 2022-23 Annual Report Analysis

Thu, 15 Feb

MANORAMA 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.

MANORAMA INDUSTRIES Income Statement Analysis

• Operating income during the year rose 25.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 45.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.1% in FY23 as against 14.0% in FY22.
• Depreciation charges increased by 37.5% and finance costs increased by 50.0% YoY, respectively.
• Other income declined by 25.7% YoY.
• Net profit for the year grew by 23.3% YoY.
• Net profit margins during the year declined from 8.7% in FY22 to 8.5% in FY23.

MANORAMA INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,791	3,508	25.7%
Other income	Rs m	82	61	-25.7%
Total Revenues	Rs m	2,874	3,569	24.2%
Gross profit	Rs m	389	565	45.0%
Depreciation	Rs m	79	109	37.5%
Interest	Rs m	58	87	50.0%
Profit before tax	Rs m	335	431	28.5%
Tax	Rs m	94	133	41.8%
Profit after tax	Rs m	241	298	23.3%
Gross profit margin	%	14.0	16.1
Effective tax rate	%	28.0	30.9
Net profit margin	%	8.7	8.5

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MANORAMA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 960 million as compared to Rs 946 million in FY22, thereby witnessing an increase of 1.5%.
• Long-term debt down at Rs 240 million as compared to Rs 298 million during FY22, a fall of 19.6%.
• Current assets fell 3% and stood at Rs 3 billion, while fixed assets rose 33% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 7%.

MANORAMA INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,683	2,981	11.1
Current Liabilities	Rs m	946	960	1.5
Long-term Debt	Rs m	298	240	-19.6
Total Liabilities	Rs m	3,958	4,244	7.2
Current assets	Rs m	2,795	2,703	-3.3
Fixed Assets	Rs m	1,163	1,541	32.6
Total Assets	Rs m	3,958	4,244	7.2

MANORAMA INDUSTRIES Cash Flow Statement Analysis

• MANORAMA INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 593 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -995 million, an improvement of 188.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -71 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -473 million from the Rs 488 million net cash flows seen during FY22.

MANORAMA 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	-334	593	-
Cash Flow from Investing Activities	Rs m	-345	-995	-
Cash Flow from Financing Activities	Rs m	1,167	-71	-
Net Cash Flow	Rs m	488	-473	-

Current Valuations for MANORAMA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.0, an improvement from the EPS of Rs 20.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,030.0, stands at 41.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 33.2 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	234.2	294.3
TTM Earnings per share	Rs	20.3	25.0
Diluted earnings per share	Rs	20.3	25.0
Price to Cash Flow	x	43.3	33.2
TTM P/E ratio	x	57.4	41.2
Price / Book Value ratio	x	6.1	4.5
Market Cap	Rs m	16,288	13,489
Dividends per share (Unadj.)	Rs	0.0	2.0

Ratio Analysis for MANORAMA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.8x during FY23, from 3.0x 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 6.0x during FY23, from 6.8x 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 10.0% during FY23, from 9.0% 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 improved and stood at 16.1% during FY23, from 13.2% 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 improved and stood at 9.1% 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	3.0	2.8
Debtors’ Days	Days	328	287
Interest coverage	x	6.8	6.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.6	9.1
Return on equity	%	9.0	10.0
Return on capital employed	%	13.2	16.1

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 1,163.3 to Rs 1,030.0, registering a loss of Rs 133.4 or around 11.5%.

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

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