MMTC 2022-23 Annual Report Analysis

Fri, 31 Mar

MMTC 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.

MMTC Income Statement Analysis

• Operating income during the year fell 70.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 469.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 51.1% in FY23 as against 2.7% in FY22.
• Depreciation charges decreased by 0.4% and finance costs decreased by 45.6% YoY, respectively.
• Other income grew by 423.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 2.2% in FY22 to 44.3% in FY23.

MMTC Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	117,962	35,282	-70.1%
Other income	Rs m	178	931	423.7%
Total Revenues	Rs m	118,140	36,213	-69.3%
Gross profit	Rs m	3,166	18,022	469.3%
Depreciation	Rs m	53	53	-0.4%
Interest	Rs m	2,280	1,239	-45.6%
Profit before tax	Rs m	1,011	17,661	1,647.2%
Tax	Rs m	3,593	2,038	-43.3%
Profit after tax	Rs m	-2,582	15,623	NA
Gross profit margin	%	2.7	51.1
Effective tax rate	%	355.5	11.5
Net profit margin	%	-2.2	44.3

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MMTC Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 22 billion as compared to Rs 49 billion in FY22, thereby witnessing an decrease of -54.7%.
• Current assets fell 25% and stood at Rs 33 billion, while fixed assets rose 11% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 35 billion as against Rs 46 billion during FY22, thereby witnessing a fall of 23%.

MMTC Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-1,492	14,106	NA
Current Liabilities	Rs m	48,899	22,173	-54.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	45,690	35,235	-22.9
Current assets	Rs m	43,564	32,884	-24.5
Fixed Assets	Rs m	2,126	2,351	10.6
Total Assets	Rs m	45,690	35,235	-22.9

MMTC Cash Flow Statement Analysis

• MMTC's cash flow from operating activities (CFO) during FY23 stood at Rs 8 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 20 billion, an improvement of 67,454.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -25 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs -26 million net cash flows seen during FY22.

MMTC 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	-3	7,538	-
Cash Flow from Investing Activities	Rs m	29	19,591	67,454.8%
Cash Flow from Financing Activities	Rs m	-51	-25,466	-
Net Cash Flow	Rs m	-26	1,663	-

Current Valuations for MMTC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.4, an improvement from the EPS of Rs -1.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 27.9, stands at 3.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 3.9 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	78.6	23.5
TTM Earnings per share	Rs	-1.7	10.4
Diluted earnings per share	Rs	-1.7	10.4
Price to Cash Flow	x	-26.2	3.9
TTM P/E ratio	x	-24.5	3.9
Price / Book Value ratio	x	-50.1	4.3
Market Cap	Rs m	74,738	61,275
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MMTC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 0.9x 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 15.3x during FY23, from 1.4x 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 110.7% during FY23, from 173.0% 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 134.0% during FY23, from -220.5% 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 improved and stood at 47.9% 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	0.9	1.5
Debtors’ Days	Days	1	4
Interest coverage	x	1.4	15.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-0.7	47.9
Return on equity	%	173.0	110.7
Return on capital employed	%	-220.5	134.0

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

MMTC Share Price Performance

Over the last one year, MMTC share price has moved down from Rs 44.2 to Rs 27.9, registering a loss of Rs 16.3 or around 36.8%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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