MT EDUCARE 2022-23 Annual Report Analysis

Thu, 19 Oct

MT EDUCARE 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.

MT EDUCARE Income Statement Analysis

• Operating income during the year rose 9.7% 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 82.3% in FY23 as against 23.6% in FY22.
• Depreciation charges decreased by 25.8% and finance costs decreased by 18.6% YoY, respectively.
• Other income declined by 70.0% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 48.1% in FY22 to 104.3% in FY23.

MT EDUCARE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	531	582	9.7%
Other income	Rs m	150	45	-70.0%
Total Revenues	Rs m	680	627	-7.8%
Gross profit	Rs m	-125	-479	NA
Depreciation	Rs m	147	109	-25.8%
Interest	Rs m	106	86	-18.6%
Profit before tax	Rs m	-229	-630	NA
Tax	Rs m	27	-23	NA
Profit after tax	Rs m	-255	-607	NA
Gross profit margin	%	-23.6	-82.3
Effective tax rate	%	-11.6	3.6
Net profit margin	%	-48.1	-104.3

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MT EDUCARE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 8.8%.
• Long-term debt stood at Rs 474 million as compared to Rs 421 million during FY22, a growth of 12.6%.
• Current assets fell 9% and stood at Rs 985 million, while fixed assets fell 21% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 3 billion during FY22, thereby witnessing a fall of 16%.

MT EDUCARE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,175	568	-51.6
Current Liabilities	Rs m	1,593	1,733	8.8
Long-term Debt	Rs m	421	474	12.6
Total Liabilities	Rs m	2,603	2,190	-15.9
Current assets	Rs m	1,081	985	-8.9
Fixed Assets	Rs m	1,522	1,205	-20.8
Total Assets	Rs m	2,603	2,190	-15.9

MT EDUCARE Cash Flow Statement Analysis

• MT EDUCARE's cash flow from operating activities (CFO) during FY23 stood at Rs 20 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -28 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 12 million, an improvement of 114% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 5 million from the Rs 10 million net cash flows seen during FY22.

MT EDUCARE 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	54	20	-63.1%
Cash Flow from Investing Activities	Rs m	44	-28	-
Cash Flow from Financing Activities	Rs m	-88	12	-
Net Cash Flow	Rs m	10	5	-51.7%

Current Valuations for MT EDUCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -8.4, an decline from the EPS of Rs -3.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3.8, stands at -0.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at -1.2 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	7.3	8.1
TTM Earnings per share	Rs	-3.5	-8.4
Diluted earnings per share	Rs	-3.5	-8.4
Price to Cash Flow	x	-5.2	-1.2
TTM P/E ratio	x	-2.2	-0.4
Price / Book Value ratio	x	0.6	1.0
Market Cap	Rs m	744	579
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MT EDUCARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY23, from 0.7x 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 -6.3x during FY23, from -1.2x 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 -106.8% during FY23, from -21.7% 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 declined and down at -52.1% during FY23, from -7.7% 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 -23.8% during FY23, from -5.7% 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	0.7	0.6
Debtors’ Days	Days	1,665	688
Interest coverage	x	-1.2	-6.3
Debt to equity ratio	x	0.4	0.8
Return on assets	%	-5.7	-23.8
Return on equity	%	-21.7	-106.8
Return on capital employed	%	-7.7	-52.1

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

MT EDUCARE Share Price Performance

Over the last one year, MT EDUCARE share price has moved down from Rs 8.4 to Rs 3.8, registering a loss of Rs 4.6 or around 54.9%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 14,455.6 (down 0.3%). Over the last one year it has moved up from 13,197.7 to 14,455.6, a gain of 1,258 points (up 9.5%).

Overall, the S&P BSE SENSEX is up 12.6% over the year.

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