MTAR TECHNOLOGIES 2022-23 Annual Report Analysis

Mon, 24 Jul

MTAR TECHNOLOGIES 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.

MTAR TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 78.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 63.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.8% in FY23 as against 29.3% in FY22.
• Depreciation charges increased by 30.4% and finance costs increased by 119.1% YoY, respectively.
• Other income grew by 122.5% YoY.
• Net profit for the year grew by 69.9% YoY.
• Net profit margins during the year declined from 18.9% in FY22 to 18.0% in FY23.

MTAR TECHNOLOGIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,220	5,738	78.2%
Other income	Rs m	88	195	122.5%
Total Revenues	Rs m	3,308	5,932	79.4%
Gross profit	Rs m	944	1,540	63.1%
Depreciation	Rs m	143	187	30.4%
Interest	Rs m	66	146	119.1%
Profit before tax	Rs m	822	1,402	70.5%
Tax	Rs m	213	368	72.4%
Profit after tax	Rs m	609	1,034	69.9%
Gross profit margin	%	29.3	26.8
Effective tax rate	%	26.0	26.2
Net profit margin	%	18.9	18.0

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MTAR TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 106.6%.
• Long-term debt stood at Rs 777 million as compared to Rs 259 million during FY22, a growth of 199.5%.
• Current assets rose 50% and stood at Rs 7 billion, while fixed assets rose 39% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 7 billion during FY22, thereby witnessing a growth of 46%.

MTAR TECHNOLOGIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,197	6,201	19.3
Current Liabilities	Rs m	1,654	3,416	106.6
Long-term Debt	Rs m	259	777	199.5
Total Liabilities	Rs m	7,277	10,633	46.1
Current assets	Rs m	4,632	6,967	50.4
Fixed Assets	Rs m	2,645	3,666	38.6
Total Assets	Rs m	7,277	10,633	46.1

MTAR TECHNOLOGIES Cash Flow Statement Analysis

• MTAR TECHNOLOGIES's cash flow from operating activities (CFO) during FY23 stood at Rs 74 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -867 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 320 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -473 million from the Rs -1 billion net cash flows seen during FY22.

MTAR TECHNOLOGIES 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	-298	74	-
Cash Flow from Investing Activities	Rs m	-1,450	-867	-
Cash Flow from Financing Activities	Rs m	541	320	-40.8%
Net Cash Flow	Rs m	-1,207	-473	-

Current Valuations for MTAR TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.6, an improvement from the EPS of Rs 19.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,115.0, stands at 62.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.5 times, while the price to sales ratio stands at 11.3 times.
• The company's price to cash flow (P/CF) ratio stood at 38.3 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	104.7	186.5
TTM Earnings per share	Rs	19.8	33.6
Diluted earnings per share	Rs	19.8	33.6
Price to Cash Flow	x	71.5	38.3
TTM P/E ratio	x	88.3	62.9
Price / Book Value ratio	x	10.2	7.5
Market Cap	Rs m	52,963	46,700
Dividends per share (Unadj.)	Rs	3.0	0.0

Ratio Analysis for MTAR TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY23, from 2.8x 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 10.6x during FY23, from 13.4x 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 16.7% during FY23, from 11.7% 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 22.2% during FY23, from 16.3% 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 11.1% during FY23, from 9.3% 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	2.8	2.0
Debtors’ Days	Days	154	133
Interest coverage	x	13.4	10.6
Debt to equity ratio	x	0.0	0.1
Return on assets	%	9.3	11.1
Return on equity	%	11.7	16.7
Return on capital employed	%	16.3	22.2

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

MTAR TECHNOLOGIES Share Price Performance

Over the last one year, MTAR TECHNOLOGIES share price has moved up from Rs 1,293.3 to Rs 2,115.0, registering a gain of Rs 821.8 or around 63.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 42,734.2 (up 0.8%). Over the last one year it has moved up from 29,009.4 to 42,734.2, a gain of 13,725 points (up 47.3%).

Overall, the S&P BSE SENSEX is up 19.8% over the year.

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