MARICO 2022-23 Annual Report Analysis

Mon, 17 Jul

MARICO 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.

MARICO Income Statement Analysis

• Operating income during the year rose 2.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.5% in FY23 as against 17.6% in FY22.
• Depreciation charges increased by 11.5% and finance costs increased by 43.6% YoY, respectively.
• Other income grew by 42.6% YoY.
• Net profit for the year grew by 5.3% YoY.
• Net profit margins during the year grew from 13.2% in FY22 to 13.5% in FY23.

MARICO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	95,120	97,640	2.6%
Other income	Rs m	1,010	1,440	42.6%
Total Revenues	Rs m	96,130	99,080	3.1%
Gross profit	Rs m	16,780	18,100	7.9%
Depreciation	Rs m	1,390	1,550	11.5%
Interest	Rs m	390	560	43.6%
Profit before tax	Rs m	16,010	17,430	8.9%
Tax	Rs m	3,460	4,210	21.7%
Profit after tax	Rs m	12,550	13,220	5.3%
Gross profit margin	%	17.6	18.5
Effective tax rate	%	21.6	24.2
Net profit margin	%	13.2	13.5

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MARICO Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 24 billion as compared to Rs 22 billion in FY22, thereby witnessing an increase of 12.8%.
• Long-term debt stood at Rs 20 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 9% and stood at Rs 38 billion, while fixed assets rose 42% and stood at Rs 30 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 68 billion as against Rs 56 billion during FY22, thereby witnessing a growth of 21%.

MARICO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	33,210	37,560	13.1
Current Liabilities	Rs m	21,530	24,290	12.8
Long-term Debt	Rs m	0	20	0.0
Total Liabilities	Rs m	55,990	68,000	21.5
Current assets	Rs m	35,050	38,130	8.8
Fixed Assets	Rs m	20,940	29,800	42.3
Total Assets	Rs m	55,990	68,000	21.5

MARICO Cash Flow Statement Analysis

• MARICO's cash flow from operating activities (CFO) during FY23 stood at Rs 14 billion, an improvement of 39.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -9 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -6 billion, an improvement of 57% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -690 million from the Rs 2 billion net cash flows seen during FY22.

MARICO 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	10,160	14,190	39.7%
Cash Flow from Investing Activities	Rs m	4,250	-9,290	-
Cash Flow from Financing Activities	Rs m	-12,900	-5,600	-
Net Cash Flow	Rs m	1,670	-690	-

Current Valuations for MARICO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.2, an improvement from the EPS of Rs 9.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 531.9, stands at 52.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.3 times, while the price to sales ratio stands at 7.0 times.
• The company's price to cash flow (P/CF) ratio stood at 44.8 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	73.6	75.5
TTM Earnings per share	Rs	9.7	10.2
Diluted earnings per share	Rs	9.7	10.2
Price to Cash Flow	x	46.7	44.8
TTM P/E ratio	x	51.9	52.0
Price / Book Value ratio	x	19.6	17.6
Market Cap	Rs m	649,852	662,092
Dividends per share (Unadj.)	Rs	9.3	4.5

Ratio Analysis for MARICO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.6x 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 32.1x during FY23, from 42.1x 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 35.2% during FY23, from 37.8% 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 declined and down at 47.9% during FY23, from 49.4% 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 declined and down at 20.3% during FY23, from 23.1% 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	1.6	1.6
Debtors’ Days	Days	3	4
Interest coverage	x	42.1	32.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	23.1	20.3
Return on equity	%	37.8	35.2
Return on capital employed	%	49.4	47.9

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

MARICO Share Price Performance

Over the last one year, MARICO share price has moved up from Rs 506.5 to Rs 531.9, registering a gain of Rs 25.5 or around 5.0%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 19,183.3 (up 0.0%). Over the last one year it has moved up from 15,091.9 to 19,183.3, a gain of 4,091 points (up 27.1%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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