MAHINDRA CIE AUTO. 2021-22 Annual Report Analysis

Sat, 31 Dec

MAHINDRA CIE AUTO. has announced its results for the year ended December 2022. Let us have a look at the detailed performance review of the company during FY21-22.

MAHINDRA CIE AUTO. Income Statement Analysis

• Operating income during the year rose 29.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.8% in CY22 as against 13.7% in CY21.
• Depreciation charges increased by 8.4% and finance costs decreased by 34.8% YoY, respectively.
• Other income grew by 24.6% YoY.
• Net profit for the year grew by 79.7% YoY.
• Net profit margins during the year grew from 5.9% in CY21 to 8.1% in CY22.

MAHINDRA CIE AUTO. Income Statement 2021-22

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Net Sales	Rs m	67,651	87,530	29.4%
Other income	Rs m	468	583	24.6%
Total Revenues	Rs m	68,119	88,113	29.4%
Gross profit	Rs m	9,301	12,120	30.3%
Depreciation	Rs m	2,733	2,962	8.4%
Interest	Rs m	348	227	-34.8%
Profit before tax	Rs m	6,688	9,514	42.3%
Tax	Rs m	2,730	2,401	-12.1%
Profit after tax	Rs m	3,958	7,113	79.7%
Gross profit margin	%	13.7	13.8
Effective tax rate	%	40.8	25.2
Net profit margin	%	5.9	8.1

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MAHINDRA CIE AUTO. Balance Sheet Analysis

• The company's current liabilities during CY22 stood at Rs 34 billion as compared to Rs 31 billion in CY21, thereby witnessing an increase of 8.6%.
• Long-term debt down at Rs 1 billion as compared to Rs 7 billion during CY21, a fall of 81.8%.
• Current assets rose 2% and stood at Rs 29 billion, while fixed assets fell 14% and stood at Rs 60 billion in CY22.
• Overall, the total assets and liabilities for CY22 stood at Rs 99 billion as against Rs 98 billion during CY21, thereby witnessing a growth of 1%.

MAHINDRA CIE AUTO. Balance Sheet as on December 2022

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Networth	Rs m	51,935	50,980	-1.8
Current Liabilities	Rs m	31,302	33,996	8.6
Long-term Debt	Rs m	6,522	1,188	-81.8
Total Liabilities	Rs m	98,206	99,198	1.0
Current assets	Rs m	28,745	29,435	2.4
Fixed Assets	Rs m	69,410	59,975	-13.6
Total Assets	Rs m	98,206	99,198	1.0

MAHINDRA CIE AUTO. Cash Flow Statement Analysis

• MAHINDRA CIE AUTO.'s cash flow from operating activities (CFO) during CY22 stood at Rs 11 billion, an improvement of 6.4% on a YoY basis.
• Cash flow from investing activities (CFI) during CY22 stood at Rs -6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during CY22 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during CY22 stood at Rs -62 million from the Rs -740 million net cash flows seen during CY21.

MAHINDRA CIE AUTO. Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-21	Dec-22
Cash Flow from Operating Activities	Rs m	10,511	11,182	6.4%
Cash Flow from Investing Activities	Rs m	-7,551	-6,395	-
Cash Flow from Financing Activities	Rs m	-3,626	-4,877	-
Net Cash Flow	Rs m	-740	-62	-

Current Valuations for MAHINDRA CIE AUTO.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.8, an improvement from the EPS of Rs 10.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 343.9, stands at 18.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 9.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Sales per share (Unadj.)	Rs	178.5	230.8
TTM Earnings per share	Rs	10.4	18.8
Diluted earnings per share	Rs	10.4	18.7
Price to Cash Flow	x	13.3	9.6
TTM P/E ratio	x	22.9	18.2
Price / Book Value ratio	x	1.7	1.9
Market Cap	Rs m	87,178	96,954
Dividends per share (Unadj.)	Rs	2.5	2.5

Ratio Analysis for MAHINDRA CIE AUTO.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during CY22, from 0.9x during CY21. 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 42.9x during CY22, from 20.2x during CY21. 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 14.0% during CY22, from 7.6% during CY22. 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 18.7% during CY22, from 12.0% during CY21. 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 7.4% during CY22, from 4.4% during CY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Current ratio	x	0.9	0.9
Debtors’ Days	Days	36	36
Interest coverage	x	20.2	42.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	4.4	7.4
Return on equity	%	7.6	14.0
Return on capital employed	%	12.0	18.7

To see how MAHINDRA CIE AUTO. has performed over the last 5 years, please visit here.

MAHINDRA CIE AUTO. Share Price Performance

Over the last one year, MAHINDRA CIE AUTO. share price has moved up from Rs 160.8 to Rs 171.8, registering a gain of Rs 11.0 or around 6.8%.

Overall, the S&P BSE SENSEX is up 16.8% over the year.

(To know more, check out historical annual results for MAHINDRA CIE AUTO. and quarterly results for MAHINDRA CIE AUTO.)