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MODISON 2022-23 Annual Report Analysis
Fri, 30 Jun

MODISON 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.

MODISON Income Statement Analysis

  • Operating income during the year fell 1.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 18.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.6% in FY23 as against 7.9% in FY22.
  • Depreciation charges decreased by 4.3% and finance costs decreased by 16.3% YoY, respectively.
  • Other income declined by 10.0% YoY.
  • Net profit for the year declined by 23.6% YoY.
  • Net profit margins during the year declined from 4.3% in FY22 to 3.3% in FY23.

MODISON Income Statement 2022-23

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Net Sales Rs m 3,395 3,347 -1.4%
Other income Rs m 17 15 -10.0%
Total Revenues Rs m 3,412 3,362 -1.5%
Gross profit Rs m 269 220 -18.3%
Depreciation Rs m 66 63 -4.3%
Interest Rs m 22 18 -16.3%
Profit before tax Rs m 198 153 -22.5%
Tax Rs m 52 42 -19.3%
Profit after tax Rs m 146 112 -23.6%
Gross profit margin % 7.9 6.6
Effective tax rate % 26.1 27.1
Net profit margin % 4.3 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Must See: Grab This Emerging Opportunity Before it Slips Away

MODISON Balance Sheet Analysis

  • The company's current liabilities during FY23 down at Rs 284 million as compared to Rs 327 million in FY22, thereby witnessing an decrease of -13.0%.
  • Current assets rose 1% and stood at Rs 1 billion, while fixed assets rose 8% and stood at Rs 851 million in FY23.
  • Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 3%.

MODISON Balance Sheet as on March 2023

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Networth Rs m 1,758 1,871 6.4
 
Current Liabilities Rs m 327 284 -13.0
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 2,142 2,215 3.4
 
Current assets Rs m 1,350 1,364 1.0
Fixed Assets Rs m 792 851 7.5
Total Assets Rs m 2,142 2,215 3.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



MODISON Cash Flow Statement Analysis

  • MODISON's cash flow from operating activities (CFO) during FY23 stood at Rs 225 million, an improvement of 56.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY23 stood at Rs -126 million, an improvement of 15.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY23 stood at Rs -138 million on a YoY basis.
  • Overall, net cash flows for the company during FY23 stood at Rs -38 million from the Rs 41 million net cash flows seen during FY22.

MODISON 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 144 225 56.7%
Cash Flow from Investing Activities Rs m -109 -126 -
Cash Flow from Financing Activities Rs m 7 -138 -
Net Cash Flow Rs m 41 -38 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for MODISON

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.4, an decline from the EPS of Rs 4.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 70.9, stands at 20.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.1 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 104.6 103.1
TTM Earnings per share Rs 4.5 3.4
Diluted earnings per share Rs 4.5 3.4
Price to Cash Flow x 10.1 12.1
TTM P/E ratio x 14.7 20.6
Price / Book Value ratio x 1.4 1.1
Market Cap Rs m 2,400 2,112
Dividends per share (Unadj.) Rs 1.0 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for MODISON

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 4.8x during FY23, from 4.1x 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 deteriorated and stood at 9.5x 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 6.0% during FY23, from 8.3% 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 9.2% during FY23, from 12.5% 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 5.9% during FY23, from 7.8% 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 4.1 4.8
Debtors’ Days Days 623 575
Interest coverage x 10.2 9.5
Debt to equity ratio x 0.0 0.0
Return on assets % 7.8 5.9
Return on equity % 8.3 6.0
Return on capital employed % 12.5 9.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

MODISON Share Price Performance

Over the last one year, MODISON share price has moved up from Rs 55.9 to Rs 70.9, registering a gain of Rs 15.1 or around 26.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 40,369.5 (up 0.8%). Over the last one year it has moved up from 26,025.5 to 40,369.5, a gain of 14,344 points (up 55.1%).

Overall, the S&P BSE SENSEX is up 21.4% over the year.

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

Annual Report FAQs

What is the current share price of MODISON?

MODISON currently trades at Rs 140.0 per share. You can check out the latest share price performance of MODISON here...

What was the revenue of MODISON in FY23? How does it compare to earlier years?

The revenues of MODISON stood at Rs 3,362 m in FY23, which was down -1.5% compared to Rs 3,412 m reported in FY22.

MODISON's revenue has grown from Rs 2,210 m in FY19 to Rs 3,362 m in FY23.

Over the past 5 years, the revenue of MODISON has grown at a CAGR of 11.1%.

What was the net profit of MODISON in FY23? How does it compare to earlier years?

The net profit of MODISON stood at Rs 112 m in FY23, which was down -23.6% compared to Rs 146 m reported in FY22.

This compares to a net profit of Rs 224 m in FY21 and a net profit of Rs 151 m in FY20.

Over the past 5 years, MODISON net profit has grown at a CAGR of -9.5%.

What does the cash flow statement of MODISON reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of MODISON reveals:

  • Cash flow from operations increased in FY23 and stood at Rs 225 m as compared to Rs 144 m in FY22.
  • Cash flow from investments decreased in FY23 and stood at Rs -126 m as compared to Rs -109 m in FY22.
  • Cash flow from financial activity decreased in FY23 and stood at Rs -138 m as compared to Rs 7 m in FY22.

Here's the cash flow statement of MODISON for the past 5 years.

(Rs m)FY19FY20FY21FY22FY23
From Operations38192238144225
From Investments-45-150-38-109-126
From Financial Activity1-31-2107-138
Net Cashflow-611-1041-38

What does the Key Ratio analysis of MODISON reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of MODISON reveals:

  • Operating profit margins witnessed a fall and stood at 6.6% in FY23 as against 7.9% in FY22.
  • Net profit margins declined from 4.3% in FY22 to 3.3% in FY23.
  • Debt to Equity ratio for FY23 stood at 0.0 as compared to 0.0 in FY22.

Here's the ratio/financial analysis of MODISON for the past 5 years.

 FY19FY20FY21FY22FY23
Operating Profit Margin (%)14.811.112.57.96.6
Net Profit Margin (%)7.66.97.74.33.3
Debt to Equity Ratio (x)0.00.00.00.00.0

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