MOLD-TEK PACKAGING 2022-23 Annual Report Analysis

Sun, 24 Sep

MOLD-TEK PACKAGING 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.

MOLD-TEK PACKAGING Income Statement Analysis

• Operating income during the year rose 15.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.6% in FY23 as against 19.1% in FY22.
• Depreciation charges increased by 14.4% and finance costs decreased by 57.9% YoY, respectively.
• Other income declined by 12.1% YoY.
• Net profit for the year grew by 26.4% YoY.
• Net profit margins during the year grew from 10.1% in FY22 to 11.0% in FY23.

MOLD-TEK PACKAGING Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,315	7,299	15.6%
Other income	Rs m	16	14	-12.1%
Total Revenues	Rs m	6,330	7,313	15.5%
Gross profit	Rs m	1,208	1,355	12.2%
Depreciation	Rs m	264	302	14.4%
Interest	Rs m	94	40	-57.9%
Profit before tax	Rs m	865	1,027	18.7%
Tax	Rs m	229	223	-2.5%
Profit after tax	Rs m	637	804	26.4%
Gross profit margin	%	19.1	18.6
Effective tax rate	%	26.4	21.7
Net profit margin	%	10.1	11.0

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MOLD-TEK PACKAGING Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 927 million in FY22, thereby witnessing an increase of 33.3%.
• Long-term debt down at Rs 135 million as compared to Rs 254 million during FY22, a fall of 46.9%.
• Current assets fell 9% and stood at Rs 3 billion, while fixed assets rose 50% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 21%.

MOLD-TEK PACKAGING Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,381	5,585	27.5
Current Liabilities	Rs m	927	1,236	33.3
Long-term Debt	Rs m	254	135	-46.9
Total Liabilities	Rs m	5,940	7,206	21.3
Current assets	Rs m	2,906	2,642	-9.1
Fixed Assets	Rs m	3,034	4,564	50.4
Total Assets	Rs m	5,940	7,206	21.3

MOLD-TEK PACKAGING Cash Flow Statement Analysis

• MOLD-TEK PACKAGING's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 7,933.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 170.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -99 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 8 million from the Rs 37 million net cash flows seen during FY22.

MOLD-TEK PACKAGING 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	20	1,590	7,933.2%
Cash Flow from Investing Activities	Rs m	-548	-1,483	-
Cash Flow from Financing Activities	Rs m	565	-99	-
Net Cash Flow	Rs m	37	8	-79.3%

Current Valuations for MOLD-TEK PACKAGING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.3, an improvement from the EPS of Rs 20.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 933.0, stands at 39.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 26.5 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	202.1	220.1
TTM Earnings per share	Rs	20.4	24.3
Diluted earnings per share	Rs	19.2	24.3
Price to Cash Flow	x	26.8	26.5
TTM P/E ratio	x	38.0	39.9
Price / Book Value ratio	x	4.3	5.3
Market Cap	Rs m	18,817	29,369
Dividends per share (Unadj.)	Rs	8.0	6.0

Ratio Analysis for MOLD-TEK PACKAGING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY23, from 3.1x 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 26.9x during FY23, from 10.2x 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 declined and down at 14.4% during FY23, from 14.5% 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 declined and down at 18.7% during FY23, from 20.7% 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 11.7% during FY23, from 12.3% 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	3.1	2.1
Debtors’ Days	Days	827	617
Interest coverage	x	10.2	26.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	12.3	11.7
Return on equity	%	14.5	14.4
Return on capital employed	%	20.7	18.7

To see how MOLD-TEK PACKAGING has performed over the last 5 years, please visit here.

MOLD-TEK PACKAGING Share Price Performance

Over the last one year, MOLD-TEK PACKAGING share price has moved down from Rs 991.9 to Rs 933.0, registering a loss of Rs 58.9 or around 5.9%.

Overall, the S&P BSE SENSEX is up 11.0% over the year.

(To know more, check out historical annual results for MOLD-TEK PACKAGING and quarterly results for MOLD-TEK PACKAGING)