MISHRA DHATU NIGAM 2022-23 Annual Report Analysis

Wed, 13 Sep

MISHRA DHATU NIGAM 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.

MISHRA DHATU NIGAM Income Statement Analysis

• Operating income during the year rose 1.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 29.7% in FY23 as against 30.7% in FY22.
• Depreciation charges increased by 60.6% and finance costs increased by 19.2% YoY, respectively.
• Other income grew by 20.7% YoY.
• Net profit for the year declined by 11.5% YoY.
• Net profit margins during the year declined from 20.5% in FY22 to 17.9% in FY23.

MISHRA DHATU NIGAM Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,595	8,719	1.4%
Other income	Rs m	313	378	20.7%
Total Revenues	Rs m	8,908	9,097	2.1%
Gross profit	Rs m	2,637	2,591	-1.8%
Depreciation	Rs m	330	530	60.6%
Interest	Rs m	226	269	19.2%
Profit before tax	Rs m	2,394	2,169	-9.4%
Tax	Rs m	628	607	-3.4%
Profit after tax	Rs m	1,766	1,563	-11.5%
Gross profit margin	%	30.7	29.7
Effective tax rate	%	26.2	28.0
Net profit margin	%	20.5	17.9

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MISHRA DHATU NIGAM Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 8 billion as compared to Rs 8 billion in FY22, thereby witnessing an decrease of -0.2%.
• Long-term debt stood at Rs 674 million as compared to Rs 278 million during FY22, a growth of 142.6%.
• Current assets rose 4% and stood at Rs 17 billion, while fixed assets rose 2% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 29 billion as against Rs 28 billion during FY22, thereby witnessing a growth of 3%.

MISHRA DHATU NIGAM Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	11,895	12,854	8.1
Current Liabilities	Rs m	8,021	8,009	-0.2
Long-term Debt	Rs m	278	674	142.6
Total Liabilities	Rs m	27,795	28,628	3.0
Current assets	Rs m	16,783	17,435	3.9
Fixed Assets	Rs m	11,012	11,193	1.6
Total Assets	Rs m	27,795	28,628	3.0

MISHRA DHATU NIGAM Cash Flow Statement Analysis

• MISHRA DHATU NIGAM's cash flow from operating activities (CFO) during FY23 stood at Rs -354 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -30 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 428 million, an improvement of 11% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 44 million from the Rs -240 million net cash flows seen during FY22.

MISHRA DHATU NIGAM 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	51	-354	-
Cash Flow from Investing Activities	Rs m	-678	-30	-
Cash Flow from Financing Activities	Rs m	387	428	10.6%
Net Cash Flow	Rs m	-240	44	-

Current Valuations for MISHRA DHATU NIGAM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.3, an decline from the EPS of Rs 9.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 403.5, stands at 48.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 8.7 times.
• The company's price to cash flow (P/CF) ratio stood at 19.0 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	45.9	46.5
TTM Earnings per share	Rs	9.4	8.3
Diluted earnings per share	Rs	9.4	8.3
Price to Cash Flow	x	14.8	19.0
TTM P/E ratio	x	17.6	48.2
Price / Book Value ratio	x	3.0	3.1
Market Cap	Rs m	36,091	39,763
Dividends per share (Unadj.)	Rs	3.1	3.4

Ratio Analysis for MISHRA DHATU NIGAM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY23, from 2.1x 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 9.1x during FY23, from 11.6x 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 12.2% during FY23, from 14.8% 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 18.0% during FY23, from 21.5% 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 6.4% during FY23, from 7.2% 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	2.1	2.2
Debtors’ Days	Days	1,301	1,322
Interest coverage	x	11.6	9.1
Debt to equity ratio	x	0.0	0.1
Return on assets	%	7.2	6.4
Return on equity	%	14.8	12.2
Return on capital employed	%	21.5	18.0

To see how MISHRA DHATU NIGAM has performed over the last 5 years, please visit here.

MISHRA DHATU NIGAM Share Price Performance

Over the last one year, MISHRA DHATU NIGAM share price has moved up from Rs 203.6 to Rs 403.5, registering a gain of Rs 199.9 or around 98.2%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 23,154.8 (up 1.0%). Over the last one year it has moved up from 19,398.1 to 23,154.8, a gain of 3,757 points (up 19.4%).

Overall, the S&P BSE SENSEX is up 12.3% over the year.

(To know more, check out historical annual results for MISHRA DHATU NIGAM and quarterly results for MISHRA DHATU NIGAM)