MUNJAL SHOWA 2022-23 Annual Report Analysis

Thu, 17 Aug

MUNJAL SHOWA 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.

MUNJAL SHOWA Income Statement Analysis

• Operating income during the year rose 17.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 301.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.7% in FY23 as against 0.8% in FY22.
• Depreciation charges decreased by 5.4% and finance costs decreased by 16.5% YoY, respectively.
• Other income grew by 11.7% YoY.
• Net profit for the year grew by 162.6% YoY.
• Net profit margins during the year grew from 1.1% in FY22 to 2.6% in FY23.

MUNJAL SHOWA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	10,599	12,405	17.0%
Other income	Rs m	182	203	11.7%
Total Revenues	Rs m	10,781	12,608	16.9%
Gross profit	Rs m	84	339	301.5%
Depreciation	Rs m	125	118	-5.4%
Interest	Rs m	3	2	-16.5%
Profit before tax	Rs m	139	422	204.0%
Tax	Rs m	17	103	495.8%
Profit after tax	Rs m	122	319	162.6%
Gross profit margin	%	0.8	2.7
Effective tax rate	%	12.4	24.4
Net profit margin	%	1.1	2.6

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MUNJAL SHOWA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 8.3%.
• Current assets rose 8% and stood at Rs 6 billion, while fixed assets fell 5% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 4%.

MUNJAL SHOWA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,374	6,512	2.2
Current Liabilities	Rs m	1,380	1,495	8.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,899	8,196	3.8
Current assets	Rs m	5,188	5,614	8.2
Fixed Assets	Rs m	2,711	2,582	-4.8
Total Assets	Rs m	7,899	8,196	3.8

MUNJAL SHOWA Cash Flow Statement Analysis

• MUNJAL SHOWA's cash flow from operating activities (CFO) during FY23 stood at Rs 64 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 2 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -181 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -115 million from the Rs 66 million net cash flows seen during FY22.

MUNJAL SHOWA 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	299	64	-78.5%
Cash Flow from Investing Activities	Rs m	-53	2	-
Cash Flow from Financing Activities	Rs m	-181	-181	-
Net Cash Flow	Rs m	66	-115	-

Current Valuations for MUNJAL SHOWA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.0, an improvement from the EPS of Rs 3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 137.3, stands at 12.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 9.1 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	265.0	310.1
TTM Earnings per share	Rs	3.0	8.0
Diluted earnings per share	Rs	3.0	8.0
Price to Cash Flow	x	15.9	9.1
TTM P/E ratio	x	32.2	12.4
Price / Book Value ratio	x	0.9	0.6
Market Cap	Rs m	5,430	3,988
Dividends per share (Unadj.)	Rs	4.5	4.5

Ratio Analysis for MUNJAL SHOWA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.8x during FY23, from 3.8x 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 186.0x during FY23, from 51.8x 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 4.9% during FY23, from 1.9% 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 6.5% during FY23, from 2.2% 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 3.9% during FY23, from 1.6% 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	3.8	3.8
Debtors’ Days	Days	587	569
Interest coverage	x	51.8	186.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.6	3.9
Return on equity	%	1.9	4.9
Return on capital employed	%	2.2	6.5

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 up from Rs 104.0 to Rs 137.3, registering a gain of Rs 33.3 or around 32.0%.

Overall, the S&P BSE SENSEX is up 8.9% over the year.

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