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MAZDA 2022-23 Annual Report Analysis

Fri, 31 Mar

MAZDA 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.

MAZDA Income Statement Analysis

• Operating income during the year rose 16.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.4% in FY23 as against 16.7% in FY22.
• Depreciation charges increased by 30.5% and finance costs decreased by 6.4% YoY, respectively.
• Other income declined by 26.6% YoY.
• Net profit for the year grew by 25.3% YoY.
• Net profit margins during the year grew from 12.9% in FY22 to 13.9% in FY23.

MAZDA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,650	1,915	16.1%
Other income	Rs m	32	23	-26.6%
Total Revenues	Rs m	1,682	1,939	15.3%
Gross profit	Rs m	276	372	34.9%
Depreciation	Rs m	24	32	30.5%
Interest	Rs m	7	6	-6.4%
Profit before tax	Rs m	277	357	29.2%
Tax	Rs m	64	91	42.0%
Profit after tax	Rs m	212	266	25.3%
Gross profit margin	%	16.7	19.4
Effective tax rate	%	23.2	25.5
Net profit margin	%	12.9	13.9

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MAZDA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 341 million as compared to Rs 253 million in FY22, thereby witnessing an increase of 34.8%.
• Current assets rose 28% and stood at Rs 1 billion, while fixed assets rose 1% and stood at Rs 793 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 17%.

MAZDA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,640	1,859	13.3
Current Liabilities	Rs m	253	341	34.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,919	2,243	16.9
Current assets	Rs m	1,130	1,449	28.3
Fixed Assets	Rs m	789	793	0.6
Total Assets	Rs m	1,919	2,243	16.9

MAZDA Cash Flow Statement Analysis

• MAZDA's cash flow from operating activities (CFO) during FY23 stood at Rs 236 million, an improvement of 180.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -146 million, an improvement of 193.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -56 million, an improvement of 8% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 34 million from the Rs -27 million net cash flows seen during FY22.

MAZDA 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	84	236	180.9%
Cash Flow from Investing Activities	Rs m	-50	-146	-
Cash Flow from Financing Activities	Rs m	-61	-56	-
Net Cash Flow	Rs m	-27	34	-

Current Valuations for MAZDA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 66.4, an improvement from the EPS of Rs 53.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 619.5, stands at 9.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 8.7 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	411.5	477.6
TTM Earnings per share	Rs	53.0	66.4
Diluted earnings per share	Rs	53.0	66.5
Price to Cash Flow	x	8.4	8.7
TTM P/E ratio	x	9.3	9.3
Price / Book Value ratio	x	1.4	1.4
Market Cap	Rs m	2,338	2,576
Dividends per share (Unadj.)	Rs	12.1	14.0

Ratio Analysis for MAZDA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.3x during FY23, from 4.5x 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 57.8x during FY23, from 42.1x 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 14.3% during FY23, from 13.0% 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 19.6% during FY23, from 17.3% 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 12.2% during FY23, from 11.4% 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	4.5	4.3
Debtors’ Days	Days	920	700
Interest coverage	x	42.1	57.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.4	12.2
Return on equity	%	13.0	14.3
Return on capital employed	%	17.3	19.6

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

MAZDA Share Price Performance

Over the last one year, MAZDA share price has moved up from Rs 493.5 to Rs 619.5, registering a gain of Rs 126.0 or around 25.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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