MRPL 2022-23 Annual Report Analysis

Tue, 15 Aug

MRPL 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.

MRPL Income Statement Analysis

• Operating income during the year rose 74.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.0% in FY23 as against 9.2% in FY22.
• Depreciation charges increased by 9.1% and finance costs increased by 7.1% YoY, respectively.
• Other income grew by 93.3% YoY.
• Net profit for the year declined by 10.2% YoY.
• Net profit margins during the year declined from 5.5% in FY22 to 2.9% in FY23.

MRPL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	534,212	929,762	74.0%
Other income	Rs m	983	1,900	93.3%
Total Revenues	Rs m	535,195	931,661	74.1%
Gross profit	Rs m	49,128	65,508	33.3%
Depreciation	Rs m	10,877	11,867	9.1%
Interest	Rs m	12,121	12,981	7.1%
Profit before tax	Rs m	27,113	42,559	57.0%
Tax	Rs m	-2,469	16,005	NA
Profit after tax	Rs m	29,583	26,554	-10.2%
Gross profit margin	%	9.2	7.0
Effective tax rate	%	-9.1	37.6
Net profit margin	%	5.5	2.9

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MRPL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 129 billion as compared to Rs 186 billion in FY22, thereby witnessing an decrease of -30.4%.
• Long-term debt down at Rs 124 billion as compared to Rs 142 billion during FY22, a fall of 12.6%.
• Current assets fell 20% and stood at Rs 128 billion, while fixed assets fell 0% and stood at Rs 233 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 361 billion as against Rs 394 billion during FY22, thereby witnessing a fall of 8%.

MRPL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	72,094	98,645	36.8
Current Liabilities	Rs m	185,615	129,173	-30.4
Long-term Debt	Rs m	142,155	124,180	-12.6
Total Liabilities	Rs m	394,138	361,033	-8.4
Current assets	Rs m	160,249	127,829	-20.2
Fixed Assets	Rs m	233,889	233,205	-0.3
Total Assets	Rs m	394,138	361,033	-8.4

MRPL Cash Flow Statement Analysis

• MRPL's cash flow from operating activities (CFO) during FY23 stood at Rs 64 billion, an improvement of 41.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -7 billion, an improvement of 13.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -57 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 13 million from the Rs -203 million net cash flows seen during FY22.

MRPL 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	44,963	63,644	41.5%
Cash Flow from Investing Activities	Rs m	-5,948	-6,732	-
Cash Flow from Financing Activities	Rs m	-39,218	-56,899	-
Net Cash Flow	Rs m	-203	13	-

Current Valuations for MRPL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.2, an decline from the EPS of Rs 16.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 85.5, stands at 16.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.2 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	304.8	530.5
TTM Earnings per share	Rs	16.9	15.2
Diluted earnings per share	Rs	16.9	15.2
Price to Cash Flow	x	1.8	3.9
TTM P/E ratio	x	2.5	16.2
Price / Book Value ratio	x	1.1	1.5
Market Cap	Rs m	81,540	148,357
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MRPL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x 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 4.3x during FY23, from 3.2x 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 declined and down at 26.9% during FY23, from 41.0% 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 24.9% during FY23, from 18.3% 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 11.0% during FY23, from 10.6% 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	1.0
Debtors’ Days	Days	30	18
Interest coverage	x	3.2	4.3
Debt to equity ratio	x	2.0	1.3
Return on assets	%	10.6	11.0
Return on equity	%	41.0	26.9
Return on capital employed	%	18.3	24.9

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

MRPL Share Price Performance

Over the last one year, MRPL share price has moved up from Rs 75.2 to Rs 85.5, registering a gain of Rs 10.3 or around 13.7%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 18,983.0 (down 0.4%). Over the last one year it has moved down from 19,772.9 to 18,983.0, a loss of 790 points (down 4.0%).

Overall, the S&P BSE SENSEX is up 10.2% over the year.

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