MONTE CARLO 2022-23 Annual Report Analysis

Wed, 16 Aug

MONTE CARLO 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.

MONTE CARLO Income Statement Analysis

• Operating income during the year rose 23.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.6% in FY23 as against 20.1% in FY22.
• Depreciation charges increased by 12.1% and finance costs increased by 50.8% YoY, respectively.
• Other income declined by 17.3% YoY.
• Net profit for the year grew by 16.3% YoY.
• Net profit margins during the year declined from 12.6% in FY22 to 11.9% in FY23.

MONTE CARLO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,043	11,177	23.6%
Other income	Rs m	252	208	-17.3%
Total Revenues	Rs m	9,295	11,385	22.5%
Gross profit	Rs m	1,820	2,195	20.6%
Depreciation	Rs m	373	418	12.1%
Interest	Rs m	175	263	50.8%
Profit before tax	Rs m	1,525	1,722	12.9%
Tax	Rs m	385	397	3.0%
Profit after tax	Rs m	1,139	1,325	16.3%
Gross profit margin	%	20.1	19.6
Effective tax rate	%	25.3	23.0
Net profit margin	%	12.6	11.9

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MONTE CARLO Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 69.3%.
• Long-term debt down at Rs 27 million as compared to Rs 83 million during FY22, a fall of 67.6%.
• Current assets rose 33% and stood at Rs 11 billion, while fixed assets rose 36% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 15 billion as against Rs 11 billion during FY22, thereby witnessing a growth of 34%.

MONTE CARLO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,873	7,764	13.0
Current Liabilities	Rs m	3,212	5,437	69.3
Long-term Debt	Rs m	83	27	-67.6
Total Liabilities	Rs m	11,036	14,742	33.6
Current assets	Rs m	8,014	10,627	32.6
Fixed Assets	Rs m	3,022	4,115	36.2
Total Assets	Rs m	11,036	14,742	33.6

MONTE CARLO Cash Flow Statement Analysis

• MONTE CARLO's cash flow from operating activities (CFO) during FY23 stood at Rs -53 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -463 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 529 million, an improvement of 336% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 13 million from the Rs 0 million net cash flows seen during FY22.

MONTE CARLO 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	706	-53	-
Cash Flow from Investing Activities	Rs m	-482	-463	-
Cash Flow from Financing Activities	Rs m	-224	529	-
Net Cash Flow	Rs m	0	13	-

Current Valuations for MONTE CARLO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 63.9, an improvement from the EPS of Rs 55.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 758.1, stands at 12.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 7.9 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	436.2	539.2
TTM Earnings per share	Rs	55.0	63.9
Diluted earnings per share	Rs	55.0	63.9
Price to Cash Flow	x	6.6	7.9
TTM P/E ratio	x	8.8	12.6
Price / Book Value ratio	x	1.4	1.8
Market Cap	Rs m	9,777	13,812
Dividends per share (Unadj.)	Rs	20.0	20.0

Ratio Analysis for MONTE CARLO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY23, from 2.5x 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 7.5x during FY23, from 9.7x 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 17.1% during FY23, from 16.6% 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 25.5% during FY23, from 24.4% 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 10.8% during FY23, from 11.9% 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	2.5	2.0
Debtors’ Days	Days	1,049	1,242
Interest coverage	x	9.7	7.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.9	10.8
Return on equity	%	16.6	17.1
Return on capital employed	%	24.4	25.5

To see how MONTE CARLO has performed over the last 5 years, please visit here.

MONTE CARLO Share Price Performance

Over the last one year, MONTE CARLO share price has moved down from Rs 773.0 to Rs 758.1, registering a loss of Rs 15.0 or around 1.9%.

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

(To know more, check out historical annual results for MONTE CARLO and quarterly results for MONTE CARLO)