MOLD-TEK TECH. 2021-22 Annual Report Analysis

Tue, 11 Oct

MOLD-TEK TECH. has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

MOLD-TEK TECH. Income Statement Analysis

• Operating income during the year rose 18.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.3% in FY22 as against 17.6% in FY21.
• Depreciation charges decreased by 8.3% and finance costs decreased by 35.8% YoY, respectively.
• Other income declined by 44.3% YoY.
• Net profit for the year grew by 32.9% YoY.
• Net profit margins during the year grew from 12.1% in FY21 to 13.5% in FY22.

MOLD-TEK TECH. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	829	984	18.6%
Other income	Rs m	51	29	-44.3%
Total Revenues	Rs m	880	1,012	15.0%
Gross profit	Rs m	146	200	37.3%
Depreciation	Rs m	48	44	-8.3%
Interest	Rs m	8	5	-35.8%
Profit before tax	Rs m	141	180	27.2%
Tax	Rs m	41	47	13.4%
Profit after tax	Rs m	100	133	32.9%
Gross profit margin	%	17.6	20.3
Effective tax rate	%	29.2	26.0
Net profit margin	%	12.1	13.5

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MOLD-TEK TECH. Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 404 million as compared to Rs 329 million in FY21, thereby witnessing an increase of 22.5%.
• Current assets rose 12% and stood at Rs 799 million, while fixed assets rose 42% and stood at Rs 376 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 979 million during FY21, thereby witnessing a growth of 20%.

MOLD-TEK TECH. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	610	726	19.0
Current Liabilities	Rs m	329	404	22.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	979	1,175	20.0
Current assets	Rs m	713	799	11.9
Fixed Assets	Rs m	266	376	41.6
Total Assets	Rs m	979	1,175	20.0

MOLD-TEK TECH. Cash Flow Statement Analysis

• MOLD-TEK TECH.'s cash flow from operating activities (CFO) during FY22 stood at Rs 154 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -73 million, an improvement of 158.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -82 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -1 million from the Rs 78 million net cash flows seen during FY21.

MOLD-TEK TECH. Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	165	154	-6.8%
Cash Flow from Investing Activities	Rs m	-28	-73	-
Cash Flow from Financing Activities	Rs m	-59	-82	-
Net Cash Flow	Rs m	78	-1	-

Current Valuations for MOLD-TEK TECH.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.7, an improvement from the EPS of Rs 3.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 91.0, stands at 19.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 11.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	29.6	34.8
TTM Earnings per share	Rs	3.6	4.7
Diluted earnings per share	Rs	3.5	4.7
Price to Cash Flow	x	7.8	11.2
TTM P/E ratio	x	11.5	19.6
Price / Book Value ratio	x	2.0	2.7
Market Cap	Rs m	1,220	1,976
Dividends per share (Unadj.)	Rs	1.4	2.0

Ratio Analysis for MOLD-TEK TECH.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY22, from 2.2x during FY21. 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 36.7x during FY22, from 19.0x during FY21. 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 18.3% during FY22, from 16.4% during FY22. 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 FY22, from 24.5% during FY21. 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 11.7% during FY22, from 11.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.2	2.0
Debtors’ Days	Days	72,461	81,213
Interest coverage	x	19.0	36.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.0	11.7
Return on equity	%	16.4	18.3
Return on capital employed	%	24.5	25.5

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

MOLD-TEK TECH. Share Price Performance

Over the last one year, MOLD-TEK TECH. share price has moved up from Rs 80.9 to Rs 91.0, registering a gain of Rs 10.1 or around 12.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 31,998.7 (down 0.1%). Over the last one year it has moved up from 26,432.6 to 31,998.7, a gain of 5,566 points (up 21.1%).

Overall, the S&P BSE SENSEX is down 3.2% over the year.

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

Read: Latest Annual Report Analysis of MOLD-TEK TECH.