MANGALAM SEEDS 2022-23 Annual Report Analysis

Wed, 11 Oct

MANGALAM SEEDS 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.

MANGALAM SEEDS Income Statement Analysis

• Operating income during the year rose 60.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 94.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.5% in FY23 as against 20.3% in FY22.
• Depreciation charges increased by 31.4% and finance costs increased by 24.2% YoY, respectively.
• Other income declined by 44.4% YoY.
• Net profit for the year grew by 114.3% YoY.
• Net profit margins during the year grew from 12.7% in FY22 to 16.9% in FY23.

MANGALAM SEEDS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	407	654	60.5%
Other income	Rs m	0	0	-44.4%
Total Revenues	Rs m	408	654	60.4%
Gross profit	Rs m	83	160	94.2%
Depreciation	Rs m	9	12	31.4%
Interest	Rs m	12	15	24.2%
Profit before tax	Rs m	62	133	116.3%
Tax	Rs m	10	23	126.8%
Profit after tax	Rs m	52	111	114.3%
Gross profit margin	%	20.3	24.5
Effective tax rate	%	16.3	17.0
Net profit margin	%	12.7	16.9

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MANGALAM SEEDS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 156 million as compared to Rs 152 million in FY22, thereby witnessing an increase of 2.4%.
• Long-term debt down at Rs 46 million as compared to Rs 57 million during FY22, a fall of 18.5%.
• Current assets rose 29% and stood at Rs 437 million, while fixed assets rose 2% and stood at Rs 344 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 781 million as against Rs 674 million during FY22, thereby witnessing a growth of 16%.

MANGALAM SEEDS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	454	566	24.7
Current Liabilities	Rs m	152	156	2.4
Long-term Debt	Rs m	57	46	-18.5
Total Liabilities	Rs m	674	781	15.9
Current assets	Rs m	338	437	29.2
Fixed Assets	Rs m	335	344	2.5
Total Assets	Rs m	674	781	15.9

MANGALAM SEEDS Cash Flow Statement Analysis

• MANGALAM SEEDS's cash flow from operating activities (CFO) during FY23 stood at Rs 50 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -20 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -18 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 11 million from the Rs 24 million net cash flows seen during FY22.

MANGALAM SEEDS 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	-16	50	-
Cash Flow from Investing Activities	Rs m	-28	-20	-
Cash Flow from Financing Activities	Rs m	67	-18	-
Net Cash Flow	Rs m	24	11	-51.7%

Current Valuations for MANGALAM SEEDS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.1, an improvement from the EPS of Rs 4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 215.0, stands at 19.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 17.4 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	37.1	59.5
TTM Earnings per share	Rs	4.7	10.1
Diluted earnings per share	Rs	4.7	10.1
Price to Cash Flow	x	15.5	17.4
TTM P/E ratio	x	18.2	19.6
Price / Book Value ratio	x	2.1	3.8
Market Cap	Rs m	945	2,130
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MANGALAM SEEDS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY23, from 2.2x 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 9.8x during FY23, from 6.0x 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 19.6% during FY23, from 11.4% 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 24.3% during FY23, from 14.5% 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 16.1% during FY23, from 9.5% 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	2.2	2.8
Debtors’ Days	Days	939	869
Interest coverage	x	6.0	9.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.5	16.1
Return on equity	%	11.4	19.6
Return on capital employed	%	14.5	24.3

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

MANGALAM SEEDS Share Price Performance

Over the last one year, MANGALAM SEEDS share price has moved up from Rs 89.3 to Rs 215.0, registering a gain of Rs 125.7 or around 140.8%.

Overall, the S&P BSE SENSEX is up 14.6% over the year.

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