MUKAT PIPES 2022-23 Annual Report Analysis

Tue, 20 Jun

MUKAT PIPES 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.

MUKAT PIPES Income Statement Analysis

• Operating income during the year fell 46.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 8.1% in FY23 as against 4.4% in FY22.
• Depreciation charges decreased by 2.3% and finance costs increased by 1.4% YoY, respectively.
• Other income declined by 2.8% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 1.9% in FY22 to 3.8% in FY23.

MUKAT PIPES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	61	33	-46.0%
Other income	Rs m	4	4	-2.8%
Total Revenues	Rs m	66	37	-43.1%
Gross profit	Rs m	-3	-3	NA
Depreciation	Rs m	1	1	-2.3%
Interest	Rs m	1	1	1.4%
Profit before tax	Rs m	-1	-1	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-1	-1	NA
Gross profit margin	%	-4.4	-8.1
Effective tax rate	%	0.0	0.0
Net profit margin	%	-1.9	-3.8

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MUKAT PIPES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 17 million as compared to Rs 14 million in FY22, thereby witnessing an increase of 27.3%.
• Long-term debt down at Rs 36 million as compared to Rs 36 million during FY22, a fall of 0.0%.
• Current assets rose 71% and stood at Rs 14 million, while fixed assets fell 8% and stood at Rs 30 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 44 million as against Rs 41 million during FY22, thereby witnessing a growth of 8%.

MUKAT PIPES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-69	-72	NA
Current Liabilities	Rs m	14	17	27.3
Long-term Debt	Rs m	36	36	0.0
Total Liabilities	Rs m	41	44	8.4
Current assets	Rs m	8	14	70.8
Fixed Assets	Rs m	33	30	-7.8
Total Assets	Rs m	41	44	8.4

MUKAT PIPES Cash Flow Statement Analysis

• MUKAT PIPES's cash flow from operating activities (CFO) during FY23 stood at Rs 1 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 million, an improvement of 450.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 million, an improvement of 18% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 million from the Rs 0 million net cash flows seen during FY22.

MUKAT PIPES 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	2	1	-32.6%
Cash Flow from Investing Activities	Rs m	0	1	450.0%
Cash Flow from Financing Activities	Rs m	-2	-1	-
Net Cash Flow	Rs m	0	1	373.3%

Current Valuations for MUKAT PIPES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.1, an decline from the EPS of Rs -0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7.4, stands at -70.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -1.2 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 2,373.9 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	5.2	2.8
TTM Earnings per share	Rs	-0.1	-0.1
Diluted earnings per share	Rs	-0.1	-0.1
Price to Cash Flow	x	478.8	2,373.9
TTM P/E ratio	x	-68.8	-70.4
Price / Book Value ratio	x	-1.6	-1.2
Market Cap	Rs m	109	89
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MUKAT PIPES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY23, from 0.6x 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 0.1x during FY23, from 0.2x 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 1.7% during FY23, from 1.7% 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 -0.5% during FY23, from -0.8% 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 0.4% during FY23, from 0.7% 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	0.6	0.8
Debtors’ Days	Days	0	246
Interest coverage	x	0.2	0.1
Debt to equity ratio	x	-0.5	-0.5
Return on assets	%	0.7	0.4
Return on equity	%	1.7	1.7
Return on capital employed	%	-0.8	-0.5

To see how MUKAT PIPES has performed over the last 5 years, please visit here.

MUKAT PIPES Share Price Performance

Over the last one year, MUKAT PIPES share price has moved up from Rs 7.3 to Rs 7.4, registering a gain of Rs 0.2 or around 2.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 20,750.2 (up 0.6%). Over the last one year it has moved up from 15,217.9 to 20,750.2, a gain of 5,532 points (up 36.4%).

Overall, the S&P BSE SENSEX is up 22.4% over the year.

(To know more, check out historical annual results for MUKAT PIPES and quarterly results for MUKAT PIPES)