MARTIN BURN 2022-23 Annual Report Analysis

Tue, 20 Jun

MARTIN BURN 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.

MARTIN BURN Income Statement Analysis

• Operating income during the year fell 54.9% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 935.9% in FY23 as against 525.3% in FY22.
• Depreciation charges decreased by 16.6% and finance costs increased by 15.5% YoY, respectively.
• Other income declined by 23.3% YoY.
• Net profit for the year declined by 38.7% YoY.
• Net profit margins during the year grew from 256.1% in FY22 to 347.7% in FY23.

MARTIN BURN Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6	3	-54.9%
Other income	Rs m	67	51	-23.3%
Total Revenues	Rs m	73	54	-26.0%
Gross profit	Rs m	-33	-27	NA
Depreciation	Rs m	2	2	-16.6%
Interest	Rs m	8	9	15.5%
Profit before tax	Rs m	23	13	-43.2%
Tax	Rs m	7	3	-54.0%
Profit after tax	Rs m	16	10	-38.7%
Gross profit margin	%	-525.3	-935.9
Effective tax rate	%	29.1	23.5
Net profit margin	%	256.1	347.7

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MARTIN BURN Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 7 million as compared to Rs 21 million in FY22, thereby witnessing an decrease of -66.9%.
• Long-term debt stood at Rs 98 million as compared to Rs 88 million during FY22, a growth of 11.6%.
• Current assets fell 7% and stood at Rs 351 million, while fixed assets rose 5% and stood at Rs 652 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 997 million during FY22, thereby witnessing a growth of 0%.

MARTIN BURN Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	484	493	1.8
Current Liabilities	Rs m	21	7	-66.9
Long-term Debt	Rs m	88	98	11.6
Total Liabilities	Rs m	997	1,002	0.5
Current assets	Rs m	376	351	-6.7
Fixed Assets	Rs m	622	652	4.8
Total Assets	Rs m	997	1,002	0.5

MARTIN BURN Cash Flow Statement Analysis

• MARTIN BURN's cash flow from operating activities (CFO) during FY23 stood at Rs -13 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 7 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -5 million, an improvement of 69% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -11 million from the Rs 9 million net cash flows seen during FY22.

MARTIN BURN 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	65	-13	-
Cash Flow from Investing Activities	Rs m	-39	7	-
Cash Flow from Financing Activities	Rs m	-17	-5	-
Net Cash Flow	Rs m	9	-11	-

Current Valuations for MARTIN BURN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.9, an decline from the EPS of Rs 3.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 40.0, stands at 20.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 71.8 times.
• The company's price to cash flow (P/CF) ratio stood at 18.5 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	1.2	0.6
TTM Earnings per share	Rs	3.2	1.9
Diluted earnings per share	Rs	3.2	1.9
Price to Cash Flow	x	12.7	18.5
TTM P/E ratio	x	14.6	20.7
Price / Book Value ratio	x	0.5	0.5
Market Cap	Rs m	230	222
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MARTIN BURN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 50.5x during FY23, from 17.9x 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 deteriorated and stood at 2.4x during FY23, from 3.8x 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 2.0% during FY23, from 3.4% 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 declined and down at 3.8% during FY23, from 5.4% 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 1.9% during FY23, from 2.5% 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	17.9	50.5
Debtors’ Days	Days	1,687	3,915
Interest coverage	x	3.8	2.4
Debt to equity ratio	x	0.2	0.2
Return on assets	%	2.5	1.9
Return on equity	%	3.4	2.0
Return on capital employed	%	5.4	3.8

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

MARTIN BURN Share Price Performance

Over the last one year, MARTIN BURN share price has moved up from Rs 37.6 to Rs 40.0, registering a gain of Rs 2.5 or around 6.5%.

Overall, the S&P BSE SENSEX is up 23.2% over the year.

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