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MINDA CORPORATION 2022-23 Annual Report Analysis

Sun, 9 Jul

MINDA CORPORATION 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.

MINDA CORPORATION Income Statement Analysis

• Operating income during the year rose 44.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.8% in FY23 as against 11.0% in FY22.
• Depreciation charges increased by 23.3% and finance costs increased by 32.2% YoY, respectively.
• Other income declined by 34.7% YoY.
• Net profit for the year grew by 59.6% YoY.
• Net profit margins during the year grew from 6.2% in FY22 to 6.8% in FY23.

MINDA CORPORATION Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	29,759	43,001	44.5%
Other income	Rs m	242	158	-34.7%
Total Revenues	Rs m	30,001	43,159	43.9%
Gross profit	Rs m	3,283	4,631	41.1%
Depreciation	Rs m	1,120	1,381	23.3%
Interest	Rs m	320	423	32.2%
Profit before tax	Rs m	2,085	2,985	43.2%
Tax	Rs m	240	41	-82.9%
Profit after tax	Rs m	1,845	2,944	59.6%
Gross profit margin	%	11.0	10.8
Effective tax rate	%	11.5	1.4
Net profit margin	%	6.2	6.8

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MINDA CORPORATION Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 13 billion as compared to Rs 10 billion in FY22, thereby witnessing an increase of 26.0%.
• Long-term debt stood at Rs 2 billion as compared to Rs 848 million during FY22, a growth of 102.4%.
• Current assets rose 2% and stood at Rs 16 billion, while fixed assets rose 58% and stood at Rs 16 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 32 billion as against Rs 26 billion during FY22, thereby witnessing a growth of 25%.

MINDA CORPORATION Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	13,273	15,858	19.5
Current Liabilities	Rs m	10,069	12,689	26.0
Long-term Debt	Rs m	848	1,716	102.4
Total Liabilities	Rs m	25,671	32,018	24.7
Current assets	Rs m	15,450	15,834	2.5
Fixed Assets	Rs m	10,221	16,184	58.3
Total Assets	Rs m	25,671	32,018	24.7

MINDA CORPORATION Cash Flow Statement Analysis

• MINDA CORPORATION's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion, an improvement of 132.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion, an improvement of 5,764.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 743 million, an improvement of 146% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 371 million from the Rs 177 million net cash flows seen during FY22.

MINDA CORPORATION 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	1,668	3,874	132.3%
Cash Flow from Investing Activities	Rs m	-73	-4,281	-
Cash Flow from Financing Activities	Rs m	-1,608	743	-
Net Cash Flow	Rs m	177	371	109.6%

Current Valuations for MINDA CORPORATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.3, an improvement from the EPS of Rs 7.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 294.4, stands at 23.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 12.4 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	124.5	179.9
TTM Earnings per share	Rs	7.7	12.3
Diluted earnings per share	Rs	7.7	12.3
Price to Cash Flow	x	16.7	12.4
TTM P/E ratio	x	26.8	23.9
Price / Book Value ratio	x	2.8	3.4
Market Cap	Rs m	36,782	53,554
Dividends per share (Unadj.)	Rs	1.0	1.2

Ratio Analysis for MINDA CORPORATION

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.5x 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 8.1x during FY23, from 7.5x 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 improved and stood at 18.6% during FY23, from 13.9% 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 19.4% during FY23, from 17.0% 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 10.5% during FY23, from 8.4% 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	1.5	1.2
Debtors’ Days	Days	70	54
Interest coverage	x	7.5	8.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.4	10.5
Return on equity	%	13.9	18.6
Return on capital employed	%	17.0	19.4

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

MINDA CORPORATION Share Price Performance

Over the last one year, MINDA CORPORATION share price has moved up from Rs 211.8 to Rs 294.4, registering a gain of Rs 82.6 or around 39.0%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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