MAX INDIA 2022-23 Annual Report Analysis

Tue, 15 Aug

MAX INDIA 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.

MAX INDIA Income Statement Analysis

• Operating income during the year fell 12.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 0.4% in FY23 as against 3.6% in FY22.
• Depreciation charges increased by 19.2% and finance costs decreased by 39.4% YoY, respectively.
• Other income grew by 64.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 7.0% in FY22 to 5.2% in FY23.

MAX INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,299	2,010	-12.5%
Other income	Rs m	76	124	64.4%
Total Revenues	Rs m	2,374	2,135	-10.1%
Gross profit	Rs m	-82	-8	NA
Depreciation	Rs m	71	84	19.2%
Interest	Rs m	103	62	-39.4%
Profit before tax	Rs m	-180	-30	NA
Tax	Rs m	-19	74	NA
Profit after tax	Rs m	-161	-104	NA
Gross profit margin	%	-3.6	-0.4
Effective tax rate	%	10.5	-245.1
Net profit margin	%	-7.0	-5.2

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MAX INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 5.4%.
• Long-term debt down at Rs 223 million as compared to Rs 390 million during FY22, a fall of 42.7%.
• Current assets fell 16% and stood at Rs 5 billion, while fixed assets fell 5% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 9 billion during FY22, thereby witnessing a fall of 12%.

MAX INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,400	5,385	-15.9
Current Liabilities	Rs m	1,532	1,615	5.4
Long-term Debt	Rs m	390	223	-42.7
Total Liabilities	Rs m	8,570	7,534	-12.1
Current assets	Rs m	5,492	4,619	-15.9
Fixed Assets	Rs m	3,079	2,915	-5.3
Total Assets	Rs m	8,570	7,534	-12.1

MAX INDIA Cash Flow Statement Analysis

• MAX INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 694 million, an improvement of 4.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 billion, an improvement of 608.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 750 million from the Rs -99 million net cash flows seen during FY22.

MAX INDIA 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	665	694	4.4%
Cash Flow from Investing Activities	Rs m	175	1,241	608.9%
Cash Flow from Financing Activities	Rs m	-939	-1,185	-
Net Cash Flow	Rs m	-99	750	-

Current Valuations for MAX INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.4, an improvement from the EPS of Rs -3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 159.2, stands at -35.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at -198.9 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	42.7	46.7
TTM Earnings per share	Rs	-3.0	-2.4
Diluted earnings per share	Rs	-3.8	-2.4
Price to Cash Flow	x	-35.1	-198.9
TTM P/E ratio	x	-20.2	-35.6
Price / Book Value ratio	x	0.6	0.7
Market Cap	Rs m	3,941	3,853
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MAX INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.9x during FY23, from 3.6x 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 improved and stood at 0.5x during FY23, from -0.8x 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 -1.9% during FY23, from -2.5% 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 0.6% during FY23, from -1.1% 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 -0.6% during FY23, from -0.7% 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	3.6	2.9
Debtors’ Days	Days	91	52
Interest coverage	x	-0.8	0.5
Debt to equity ratio	x	0.1	0.0
Return on assets	%	-0.7	-0.6
Return on equity	%	-2.5	-1.9
Return on capital employed	%	-1.1	0.6

To see how MAX INDIA has performed over the last 5 years, please visit here.

MAX INDIA Share Price Performance

Over the last one year, MAX INDIA share price has moved up from Rs 77.5 to Rs 159.2, registering a gain of Rs 81.8 or around 105.6%.

Overall, the S&P BSE SENSEX is up 10.2% over the year.

(To know more, check out historical annual results for MAX INDIA and quarterly results for MAX INDIA)