MUNJAL SHOWA 2021-22 Annual Report Analysis

Tue, 26 Jul

MUNJAL SHOWA 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.

MUNJAL SHOWA Income Statement Analysis

• Operating income during the year fell 2.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 64.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.8% in FY22 as against 2.2% in FY21.
• Depreciation charges decreased by 23.4% and finance costs decreased by 11.4% YoY, respectively.
• Other income declined by 24.3% YoY.
• Net profit for the year declined by 53.5% YoY.
• Net profit margins during the year declined from 2.4% in FY21 to 1.1% in FY22.

MUNJAL SHOWA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	10,854	10,599	-2.3%
Other income	Rs m	240	182	-24.3%
Total Revenues	Rs m	11,094	10,781	-2.8%
Gross profit	Rs m	240	84	-64.9%
Depreciation	Rs m	163	125	-23.4%
Interest	Rs m	3	3	-11.4%
Profit before tax	Rs m	314	139	-55.9%
Tax	Rs m	53	17	-67.4%
Profit after tax	Rs m	261	122	-53.5%
Gross profit margin	%	2.2	0.8
Effective tax rate	%	16.9	12.4
Net profit margin	%	2.4	1.1

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MUNJAL SHOWA Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 1 billion as compared to Rs 1 billion in FY21, thereby witnessing an decrease of -6.9%.
• Current assets fell 5% and stood at Rs 5 billion, while fixed assets rose 5% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 8 billion as against Rs 8 billion during FY21, thereby witnessing a fall of 2%.

MUNJAL SHOWA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,414	6,374	-0.6
Current Liabilities	Rs m	1,482	1,380	-6.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	8,031	7,899	-1.6
Current assets	Rs m	5,455	5,188	-4.9
Fixed Assets	Rs m	2,576	2,711	5.2
Total Assets	Rs m	8,031	7,899	-1.6

MUNJAL SHOWA Cash Flow Statement Analysis

• MUNJAL SHOWA's cash flow from operating activities (CFO) during FY22 stood at Rs 299 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -53 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -181 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 66 million from the Rs 71 million net cash flows seen during FY21.

MUNJAL SHOWA 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	-175	299	-
Cash Flow from Investing Activities	Rs m	428	-53	-
Cash Flow from Financing Activities	Rs m	-181	-181	-
Net Cash Flow	Rs m	71	66	-7.4%

Current Valuations for MUNJAL SHOWA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.0, an decline from the EPS of Rs 6.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 109.2, stands at 35.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 22.1 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	271.3	265.0
TTM Earnings per share	Rs	6.5	3.0
Diluted earnings per share	Rs	6.5	3.0
Price to Cash Flow	x	13.0	22.1
TTM P/E ratio	x	21.2	35.9
Price / Book Value ratio	x	0.7	0.9
Market Cap	Rs m	4,669	5,431
Dividends per share (Unadj.)	Rs	4.5	4.5

Ratio Analysis for MUNJAL SHOWA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.8x during FY22, from 3.7x 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 deteriorated and stood at 51.8x during FY22, from 103.1x 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 declined and down at 1.9% during FY22, from 4.1% 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 declined and down at 2.2% during FY22, from 5.0% 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 declined and down at 1.6% during FY22, from 3.3% 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	3.7	3.8
Debtors’ Days	Days	661	587
Interest coverage	x	103.1	51.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.3	1.6
Return on equity	%	4.1	1.9
Return on capital employed	%	5.0	2.2

To see how MUNJAL SHOWA has performed over the last 5 years, please visit here.

MUNJAL SHOWA Share Price Performance

Over the last one year, MUNJAL SHOWA share price has moved down from Rs 149.5 to Rs 109.2, registering a loss of Rs 40.3 or around 27.0%.

Overall, the S&P BSE SENSEX is up 5.2% over the year.

(To know more, check out historical annual results for MUNJAL SHOWA and quarterly results for MUNJAL SHOWA)

Read: Latest Annual Report Analysis of MUNJAL SHOWA