MIC ELECTRONICS 2022-23 Annual Report Analysis

Fri, 25 Aug

MIC ELECTRONICS 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.

MIC ELECTRONICS Income Statement Analysis

• Operating income during the year fell 49.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 77.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.5% in FY23 as against 14.9% in FY22.
• Depreciation charges decreased by 18.5% and finance costs decreased by 60.9% YoY, respectively.
• Other income grew by 48.8% YoY.
• Net profit for the year declined by 91.8% YoY.
• Net profit margins during the year declined from 6.6% in FY22 to 1.1% in FY23.

MIC ELECTRONICS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	449	229	-49.0%
Other income	Rs m	13	19	48.8%
Total Revenues	Rs m	463	249	-46.3%
Gross profit	Rs m	67	15	-77.6%
Depreciation	Rs m	29	24	-18.5%
Interest	Rs m	21	8	-60.9%
Profit before tax	Rs m	30	3	-91.4%
Tax	Rs m	1	0	-72.9%
Profit after tax	Rs m	30	2	-91.8%
Gross profit margin	%	14.9	6.5
Effective tax rate	%	2.3	7.3
Net profit margin	%	6.6	1.1

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MIC ELECTRONICS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 214 million as compared to Rs 89 million in FY22, thereby witnessing an increase of 141.3%.
• Long-term debt down at Rs 18 million as compared to Rs 24 million during FY22, a fall of 23.2%.
• Current assets rose 41% and stood at Rs 325 million, while fixed assets rose 6% and stood at Rs 549 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 874 million as against Rs 751 million during FY22, thereby witnessing a growth of 16%.

MIC ELECTRONICS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	44	46	5.7
Current Liabilities	Rs m	89	214	141.3
Long-term Debt	Rs m	24	18	-23.2
Total Liabilities	Rs m	751	874	16.4
Current assets	Rs m	231	325	40.7
Fixed Assets	Rs m	520	549	5.6
Total Assets	Rs m	751	874	16.4

MIC ELECTRONICS Cash Flow Statement Analysis

• MIC ELECTRONICS's cash flow from operating activities (CFO) during FY23 stood at Rs -67 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -29 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 98 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 million from the Rs 0 million net cash flows seen during FY22.

MIC ELECTRONICS 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	-582	-67	-
Cash Flow from Investing Activities	Rs m	-80	-29	-
Cash Flow from Financing Activities	Rs m	662	98	-85.2%
Net Cash Flow	Rs m	0	2	470.0%

Current Valuations for MIC ELECTRONICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an decline from the EPS of Rs 0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 29.3, stands at 236.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 139.9 times, while the price to sales ratio stands at 28.3 times.
• The company's price to cash flow (P/CF) ratio stood at 129.3 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	2.0	1.0
TTM Earnings per share	Rs	0.1	0.0
Diluted earnings per share	Rs	0.1	0.0
Price to Cash Flow	x	63.1	129.3
TTM P/E ratio	x	125.3	236.6
Price / Book Value ratio	x	101.9	73.0
Market Cap	Rs m	4,471	3,384
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MIC ELECTRONICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 2.6x 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 1.3x during FY23, from 2.5x 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 5.3% during FY23, from 67.6% 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 16.5% during FY23, from 75.4% 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 1.2% during FY23, from 6.7% 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	2.6	1.5
Debtors’ Days	Days	109	449
Interest coverage	x	2.5	1.3
Debt to equity ratio	x	0.5	0.4
Return on assets	%	6.7	1.2
Return on equity	%	67.6	5.3
Return on capital employed	%	75.4	16.5

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

MIC ELECTRONICS Share Price Performance

Over the last one year, MIC ELECTRONICS share price has moved up from Rs 16.1 to Rs 29.3, registering a gain of Rs 13.1 or around 81.4%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 18,609.5 (down 0.9%). Over the last one year it has moved up from 15,606.5 to 18,609.5, a gain of 3,003 points (up 19.2%).

Overall, the S&P BSE SENSEX is up 9.9% over the year.

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