MINDA INDUSTRIES 2021-22 Annual Report Analysis

Sat, 20 Aug

MINDA INDUSTRIES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

MINDA INDUSTRIES Income Statement Analysis

• Operating income during the year rose 30.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.7% in FY22 as against 11.4% in FY21.
• Depreciation charges increased by 4.4% and finance costs decreased by 15.4% YoY, respectively.
• Other income grew by 33.8% YoY.
• Net profit for the year grew by 54.9% YoY.
• Net profit margins during the year grew from 3.5% in FY21 to 4.2% in FY22.

MINDA INDUSTRIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	63,737	83,130	30.4%
Other income	Rs m	470	629	33.8%
Total Revenues	Rs m	64,208	83,759	30.5%
Gross profit	Rs m	7,267	8,854	21.8%
Depreciation	Rs m	3,753	3,918	4.4%
Interest	Rs m	737	623	-15.4%
Profit before tax	Rs m	3,248	4,943	52.2%
Tax	Rs m	1,005	1,468	46.0%
Profit after tax	Rs m	2,243	3,475	54.9%
Gross profit margin	%	11.4	10.7
Effective tax rate	%	31.0	29.7
Net profit margin	%	3.5	4.2

MINDA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 23 billion as compared to Rs 25 billion in FY21, thereby witnessing an decrease of -7.4%.
• Long-term debt down at Rs 4 billion as compared to Rs 5 billion during FY21, a fall of 30.5%.
• Current assets rose 22% and stood at Rs 30 billion, while fixed assets rose 8% and stood at Rs 38 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 68 billion as against Rs 60 billion during FY21, thereby witnessing a growth of 14%.

MINDA INDUSTRIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	22,543	34,108	51.3
Current Liabilities	Rs m	25,302	23,422	-7.4
Long-term Debt	Rs m	5,391	3,747	-30.5
Total Liabilities	Rs m	59,774	67,979	13.7
Current assets	Rs m	24,214	29,559	22.1
Fixed Assets	Rs m	35,561	38,419	8.0
Total Assets	Rs m	59,774	67,979	13.7

MINDA INDUSTRIES Cash Flow Statement Analysis

• MINDA INDUSTRIES's cash flow from operating activities (CFO) during FY22 stood at Rs 4 billion, an improvement of 11.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -7 billion, an improvement of 93.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 3 billion, an improvement of 873% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -33 million from the Rs -581 million net cash flows seen during FY21.

MINDA INDUSTRIES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	3,427	3,829	11.7%
Cash Flow from Investing Activities	Rs m	-3,610	-6,987	-
Cash Flow from Financing Activities	Rs m	-402	3,110	-
Net Cash Flow	Rs m	-581	-33	-

Current Valuations for MINDA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.2, an improvement from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 543.9, stands at 69.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.1 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 16.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	234.4	291.1
TTM Earnings per share	Rs	8.2	12.2
Diluted earnings per share	Rs	3.9	6.1
Price to Cash Flow	x	25.9	16.6
TTM P/E ratio	x	67.8	69.8
Price / Book Value ratio	x	5.0	3.6
Market Cap	Rs m	113,387	122,817
Dividends per share (Unadj.)	Rs	0.9	1.5

Ratio Analysis for MINDA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY22, from 1.0x during FY21. 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 8.9x during FY22, from 5.4x during FY21. 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 10.2% during FY22, from 9.9% during FY22. 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 14.7% during FY22, from 14.3% during FY21. 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 6.0% during FY22, from 5.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.0	1.3
Debtors’ Days	Days	7	6
Interest coverage	x	5.4	8.9
Debt to equity ratio	x	0.2	0.1
Return on assets	%	5.0	6.0
Return on equity	%	9.9	10.2
Return on capital employed	%	14.3	14.7

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

MINDA INDUSTRIES Share Price Performance

Over the last one year, MINDA INDUSTRIES share price has moved up from Rs 354.5 to Rs 543.9, registering a gain of Rs 189.4 or around 53.4%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

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

Read: Latest Annual Report Analysis of UNO MINDA