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MIRZA INTERNATIONAL 2021-22 Annual Report Analysis

Sat, 17 Sep

MIRZA INTERNATIONAL has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

MIRZA INTERNATIONAL Income Statement Analysis

• Operating income during the year rose 60.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 98.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.0% in FY22 as against 11.3% in FY21.
• Depreciation charges decreased by 9.4% and finance costs decreased by 34.2% YoY, respectively.
• Other income grew by 376.7% YoY.
• Net profit for the year grew by 1248.2% YoY.
• Net profit margins during the year grew from 0.8% in FY21 to 6.7% in FY22.

MIRZA INTERNATIONAL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	10,489	16,787	60.0%
Other income	Rs m	12	57	376.7%
Total Revenues	Rs m	10,501	16,844	60.4%
Gross profit	Rs m	1,183	2,351	98.7%
Depreciation	Rs m	665	603	-9.4%
Interest	Rs m	410	270	-34.2%
Profit before tax	Rs m	119	1,536	1,187.1%
Tax	Rs m	36	406	1,042.8%
Profit after tax	Rs m	84	1,130	1,248.2%
Gross profit margin	%	11.3	14.0
Effective tax rate	%	29.8	26.4
Net profit margin	%	0.8	6.7

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MIRZA INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 4 billion as compared to Rs 3 billion in FY21, thereby witnessing an increase of 27.2%.
• Long-term debt stood at Rs 152 million as compared to Rs 44 million during FY21, a growth of 245.1%.
• Current assets rose 35% and stood at Rs 8 billion, while fixed assets rose 8% and stood at Rs 6 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 14 billion as against Rs 12 billion during FY21, thereby witnessing a growth of 22%.

MIRZA INTERNATIONAL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,382	7,595	19.0
Current Liabilities	Rs m	3,052	3,883	27.2
Long-term Debt	Rs m	44	152	245.1
Total Liabilities	Rs m	11,696	14,228	21.6
Current assets	Rs m	5,789	7,838	35.4
Fixed Assets	Rs m	5,907	6,390	8.2
Total Assets	Rs m	11,696	14,228	21.6

MIRZA INTERNATIONAL Cash Flow Statement Analysis

• MIRZA INTERNATIONAL's cash flow from operating activities (CFO) during FY22 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -807 million, an improvement of 98.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 billion, an improvement of 49% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 97 million from the Rs -35 million net cash flows seen during FY21.

MIRZA INTERNATIONAL Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	2,378	1,927	-19.0%
Cash Flow from Investing Activities	Rs m	-407	-807	-
Cash Flow from Financing Activities	Rs m	-2,007	-1,023	-
Net Cash Flow	Rs m	-35	97	-

Current Valuations for MIRZA INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.4, an improvement from the EPS of Rs 0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 340.6, stands at 28.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.4 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 7.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	87.2	139.5
TTM Earnings per share	Rs	0.7	9.4
Diluted earnings per share	Rs	0.7	9.4
Price to Cash Flow	x	7.3	7.8
TTM P/E ratio	x	67.8	28.9
Price / Book Value ratio	x	1.0	1.8
Market Cap	Rs m	6,075	13,531
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MIRZA INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY22, from 1.9x during FY21. 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 6.7x during FY22, from 1.3x during FY21. 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 14.9% during FY22, from 1.3% during FY22. 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 23.3% during FY22, from 8.2% during FY21. 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 9.8% during FY22, from 4.2% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.9	2.0
Debtors’ Days	Days	277	338
Interest coverage	x	1.3	6.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.2	9.8
Return on equity	%	1.3	14.9
Return on capital employed	%	8.2	23.3

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

MIRZA INTERNATIONAL Share Price Performance

Over the last one year, MIRZA INTERNATIONAL share price has moved up from Rs 57.4 to Rs 340.6, registering a gain of Rs 283.2 or around 493.3%.

Overall, the S&P BSE SENSEX is up 0.2% over the year.

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

Read: Latest Annual Report Analysis of MIRZA INTERNATIONAL