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MANGALORE CHEMICALS 2022-23 Annual Report Analysis

Thu, 28 Sep

MANGALORE CHEMICALS 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.

MANGALORE CHEMICALS Income Statement Analysis

• Operating income during the year rose 25.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 47.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.5% in FY23 as against 7.3% in FY22.
• Depreciation charges increased by 18.0% and finance costs increased by 111.3% YoY, respectively.
• Other income grew by 26.3% YoY.
• Net profit for the year grew by 53.3% YoY.
• Net profit margins during the year grew from 3.0% in FY22 to 3.7% in FY23.

MANGALORE CHEMICALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	28,956	36,415	25.8%
Other income	Rs m	243	306	26.3%
Total Revenues	Rs m	29,199	36,722	25.8%
Gross profit	Rs m	2,104	3,094	47.1%
Depreciation	Rs m	506	597	18.0%
Interest	Rs m	494	1,044	111.3%
Profit before tax	Rs m	1,347	1,760	30.7%
Tax	Rs m	468	414	-11.6%
Profit after tax	Rs m	879	1,347	53.3%
Gross profit margin	%	7.3	8.5
Effective tax rate	%	34.8	23.5
Net profit margin	%	3.0	3.7

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MANGALORE CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 14 billion as compared to Rs 17 billion in FY22, thereby witnessing an decrease of -19.0%.
• Long-term debt stood at Rs 4 billion as compared to Rs 2 billion during FY22, a growth of 63.5%.
• Current assets fell 14% and stood at Rs 16 billion, while fixed assets rose 21% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 27 billion as against Rs 27 billion during FY22, thereby witnessing a fall of 2%.

MANGALORE CHEMICALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,831	8,032	17.6
Current Liabilities	Rs m	17,363	14,071	-19.0
Long-term Debt	Rs m	2,182	3,567	63.5
Total Liabilities	Rs m	27,208	26,592	-2.3
Current assets	Rs m	18,099	15,544	-14.1
Fixed Assets	Rs m	9,109	11,047	21.3
Total Assets	Rs m	27,208	26,592	-2.3

MANGALORE CHEMICALS Cash Flow Statement Analysis

• MANGALORE CHEMICALS's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 30.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 billion from the Rs 1 billion net cash flows seen during FY22.

MANGALORE CHEMICALS 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	-872	1,921	-
Cash Flow from Investing Activities	Rs m	-1,869	-2,430	-
Cash Flow from Financing Activities	Rs m	4,038	-1,014	-
Net Cash Flow	Rs m	1,297	-1,523	-

Current Valuations for MANGALORE CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.4, an improvement from the EPS of Rs 7.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 109.5, stands at 8.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 6.2 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	244.3	307.2
TTM Earnings per share	Rs	7.4	11.4
Diluted earnings per share	Rs	7.4	11.4
Price to Cash Flow	x	7.4	6.2
TTM P/E ratio	x	11.7	8.0
Price / Book Value ratio	x	1.4	1.5
Market Cap	Rs m	9,698	12,115
Dividends per share (Unadj.)	Rs	1.2	1.5

Ratio Analysis for MANGALORE CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 1.0x 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 2.7x during FY23, from 3.7x 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 16.8% during FY23, from 12.9% 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 24.2% during FY23, from 20.4% 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 9.0% during FY23, from 5.0% 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	1.0	1.1
Debtors’ Days	Days	838	759
Interest coverage	x	3.7	2.7
Debt to equity ratio	x	0.3	0.4
Return on assets	%	5.0	9.0
Return on equity	%	12.9	16.8
Return on capital employed	%	20.4	24.2

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

MANGALORE CHEMICALS Share Price Performance

Over the last one year, MANGALORE CHEMICALS share price has moved down from Rs 123.2 to Rs 109.5, registering a loss of Rs 13.7 or around 11.1%.

Overall, the S&P BSE SENSEX is up 15.8% over the year.

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