MAFATLAL INDUSTRIES 2022-23 Annual Report Analysis

Fri, 31 Mar

MAFATLAL INDUSTRIES 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.

MAFATLAL INDUSTRIES Income Statement Analysis

• Operating income during the year rose 36.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 1.9% in FY23 as against 0.2% in FY22.
• Depreciation charges decreased by 2.1% and finance costs decreased by 4.9% YoY, respectively.
• Other income declined by 31.7% YoY.
• Net profit for the year grew by 29.4% YoY.
• Net profit margins during the year declined from 2.9% in FY22 to 2.7% in FY23.

MAFATLAL INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	10,031	13,717	36.8%
Other income	Rs m	683	466	-31.7%
Total Revenues	Rs m	10,714	14,183	32.4%
Gross profit	Rs m	-24	264	NA
Depreciation	Rs m	158	154	-2.1%
Interest	Rs m	186	177	-4.9%
Profit before tax	Rs m	315	399	26.5%
Tax	Rs m	29	28	-2.0%
Profit after tax	Rs m	287	371	29.4%
Gross profit margin	%	-0.2	1.9
Effective tax rate	%	9.1	7.0
Net profit margin	%	2.9	2.7

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MAFATLAL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 8.9%.
• Long-term debt down at Rs 261 million as compared to Rs 439 million during FY22, a fall of 40.4%.
• Current assets rose 13% and stood at Rs 5 billion, while fixed assets fell 12% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 13 billion as against Rs 13 billion during FY22, thereby witnessing a fall of 3%.

MAFATLAL INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,853	6,119	-10.7
Current Liabilities	Rs m	4,711	5,132	8.9
Long-term Debt	Rs m	439	261	-40.4
Total Liabilities	Rs m	13,441	12,987	-3.4
Current assets	Rs m	4,667	5,287	13.3
Fixed Assets	Rs m	8,774	7,700	-12.2
Total Assets	Rs m	13,441	12,987	-3.4

MAFATLAL INDUSTRIES Cash Flow Statement Analysis

• MAFATLAL INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs -71 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 359 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -336 million, an improvement of 36% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -48 million from the Rs 182 million net cash flows seen during FY22.

MAFATLAL INDUSTRIES 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	95	-71	-
Cash Flow from Investing Activities	Rs m	611	359	-41.2%
Cash Flow from Financing Activities	Rs m	-524	-336	-
Net Cash Flow	Rs m	182	-48	-

Current Valuations for MAFATLAL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.3, an decline from the EPS of Rs 20.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 41.0, stands at 7.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 7.8 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	712.9	194.3
TTM Earnings per share	Rs	20.4	5.3
Diluted earnings per share	Rs	4.0	5.2
Price to Cash Flow	x	5.6	7.8
TTM P/E ratio	x	8.7	7.9
Price / Book Value ratio	x	0.3	0.7
Market Cap	Rs m	2,370	4,104
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MAFATLAL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY23, from 1.0x 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 3.2x during FY23, from 2.7x 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 6.1% during FY23, from 4.2% 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 9.0% during FY23, from 6.9% 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 4.2% during FY23, from 3.5% 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	1.0	1.0
Debtors’ Days	Days	926	761
Interest coverage	x	2.7	3.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	3.5	4.2
Return on equity	%	4.2	6.1
Return on capital employed	%	6.9	9.0

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

MAFATLAL INDUSTRIES Share Price Performance

Over the last one year, MAFATLAL INDUSTRIES share price has moved up from Rs 34.9 to Rs 41.0, registering a gain of Rs 6.1 or around 17.5%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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