MANGALAM CEMENT 2022-23 Annual Report Analysis

Wed, 19 Jul

MANGALAM CEMENT 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.

MANGALAM CEMENT Income Statement Analysis

• Operating income during the year rose 15.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 41.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.1% in FY23 as against 13.9% in FY22.
• Depreciation charges increased by 11.5% and finance costs increased by 2.7% YoY, respectively.
• Other income grew by 27.7% YoY.
• Net profit for the year declined by 78.0% YoY.
• Net profit margins during the year declined from 5.0% in FY22 to 1.0% in FY23.

MANGALAM CEMENT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,661	18,016	15.0%
Other income	Rs m	274	349	27.7%
Total Revenues	Rs m	15,934	18,365	15.3%
Gross profit	Rs m	2,185	1,284	-41.2%
Depreciation	Rs m	623	695	11.5%
Interest	Rs m	644	662	2.7%
Profit before tax	Rs m	1,191	277	-76.7%
Tax	Rs m	414	106	-74.4%
Profit after tax	Rs m	777	171	-78.0%
Gross profit margin	%	13.9	7.1
Effective tax rate	%	34.8	38.2
Net profit margin	%	5.0	1.0

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

MANGALAM CEMENT Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 7 billion in FY22, thereby witnessing an increase of 16.2%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY22, a fall of 19.9%.
• Current assets fell 4% and stood at Rs 7 billion, while fixed assets rose 7% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 20 billion as against Rs 19 billion during FY22, thereby witnessing a growth of 3%.

MANGALAM CEMENT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,422	7,562	1.9
Current Liabilities	Rs m	6,702	7,790	16.2
Long-term Debt	Rs m	3,630	2,909	-19.9
Total Liabilities	Rs m	19,285	19,902	3.2
Current assets	Rs m	6,959	6,692	-3.8
Fixed Assets	Rs m	12,326	13,210	7.2
Total Assets	Rs m	19,285	19,902	3.2

MANGALAM CEMENT Cash Flow Statement Analysis

• MANGALAM CEMENT's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -636 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -894 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -144 million from the Rs -182 million net cash flows seen during FY22.

MANGALAM CEMENT 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	1,885	1,387	-26.5%
Cash Flow from Investing Activities	Rs m	-1,337	-636	-
Cash Flow from Financing Activities	Rs m	-731	-894	-
Net Cash Flow	Rs m	-182	-144	-

Current Valuations for MANGALAM CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.2, an decline from the EPS of Rs 28.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 293.3, stands at 47.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 10.2 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	569.5	655.1
TTM Earnings per share	Rs	28.3	6.2
Diluted earnings per share	Rs	28.3	6.2
Price to Cash Flow	x	7.6	10.2
TTM P/E ratio	x	13.8	47.1
Price / Book Value ratio	x	1.5	1.2
Market Cap	Rs m	11,040	8,851
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for MANGALAM CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x 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 deteriorated and stood at 1.4x during FY23, from 2.8x 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 2.3% during FY23, from 10.5% 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 9.0% during FY23, from 16.6% 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 4.2% during FY23, from 7.4% 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	0.9
Debtors’ Days	Days	85	75
Interest coverage	x	2.8	1.4
Debt to equity ratio	x	0.5	0.4
Return on assets	%	7.4	4.2
Return on equity	%	10.5	2.3
Return on capital employed	%	16.6	9.0

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

MANGALAM CEMENT Share Price Performance

Over the last one year, MANGALAM CEMENT share price has moved down from Rs 305.6 to Rs 293.3, registering a loss of Rs 12.3 or around 4.0%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

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