MOTILAL OSWAL 2021-22 Annual Report Analysis

Fri, 24 Jun

MOTILAL OSWAL 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.

MOTILAL OSWAL Income Statement Analysis

• Operating income during the year rose 18.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 49.3% in FY22 as against 53.2% in FY21.
• Depreciation charges increased by 1.6% and finance costs increased by 11.1% YoY, respectively.
• Other income grew by 182.0% YoY.
• Net profit for the year grew by 9.0% YoY.
• Net profit margins during the year declined from 33.2% in FY21 to 30.5% in FY22.

MOTILAL OSWAL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	36,251	42,968	18.5%
Other income	Rs m	90	254	182.0%
Total Revenues	Rs m	36,341	43,222	18.9%
Gross profit	Rs m	19,272	21,169	9.8%
Depreciation	Rs m	475	483	1.6%
Interest	Rs m	4,303	4,782	11.1%
Profit before tax	Rs m	14,584	16,158	10.8%
Tax	Rs m	2,555	3,051	19.4%
Profit after tax	Rs m	12,030	13,107	9.0%
Gross profit margin	%	53.2	49.3
Effective tax rate	%	17.5	18.9
Net profit margin	%	33.2	30.5

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MOTILAL OSWAL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 96 billion as compared to Rs 77 billion in FY21, thereby witnessing an increase of 24.3%.
• Long-term debt down at Rs 15 billion as compared to Rs 18 billion during FY21, a fall of 18.1%.
• Current assets rose 19% and stood at Rs 119 billion, while fixed assets rose 22% and stood at Rs 50 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 169 billion as against Rs 140 billion during FY21, thereby witnessing a growth of 20%.

MOTILAL OSWAL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	44,036	56,032	27.2
Current Liabilities	Rs m	76,940	95,611	24.3
Long-term Debt	Rs m	17,955	14,705	-18.1
Total Liabilities	Rs m	140,414	168,598	20.1
Current assets	Rs m	99,358	118,596	19.4
Fixed Assets	Rs m	41,056	50,002	21.8
Total Assets	Rs m	140,414	168,598	20.1

MOTILAL OSWAL Cash Flow Statement Analysis

• MOTILAL OSWAL's cash flow from operating activities (CFO) during FY22 stood at Rs 10 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion, an improvement of 63.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 3 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 8 billion from the Rs 4 billion net cash flows seen during FY21.

MOTILAL OSWAL 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	-1,387	10,107	-
Cash Flow from Investing Activities	Rs m	-2,734	-4,474	-
Cash Flow from Financing Activities	Rs m	8,606	2,822	-67.2%
Net Cash Flow	Rs m	4,486	8,455	88.5%

Current Valuations for MOTILAL OSWAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 87.9, an improvement from the EPS of Rs 82.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 740.1, stands at 8.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 9.6 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	247.2	288.3
TTM Earnings per share	Rs	82.0	87.9
Diluted earnings per share	Rs	80.7	87.9
Price to Cash Flow	x	7.5	9.6
TTM P/E ratio	x	7.7	8.4
Price / Book Value ratio	x	2.0	2.3
Market Cap	Rs m	88,533	130,896
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for MOTILAL OSWAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY22, from 1.3x 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 4.4x during FY22, from 4.4x 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 23.4% during FY22, from 27.3% 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 29.6% during FY22, from 30.5% 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 10.6% during FY22, from 11.6% 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	1.3	1.2
Debtors’ Days	Days	918	852
Interest coverage	x	4.4	4.4
Debt to equity ratio	x	0.4	0.3
Return on assets	%	11.6	10.6
Return on equity	%	27.3	23.4
Return on capital employed	%	30.5	29.6

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

MOTILAL OSWAL Share Price Performance

Over the last one year, MOTILAL OSWAL share price has moved down from Rs 786.2 to Rs 740.1, registering a loss of Rs 46.2 or around 5.9%.

Overall, the S&P BSE SENSEX is up 0.1% over the year.

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

Read: Latest Annual Report Analysis of MOTILAL OSWAL