MARATHON NEXTGEN 2020-21 Annual Report Analysis

Wed, 31 Mar

MARATHON NEXTGEN has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

MARATHON NEXTGEN Income Statement Analysis

• Operating income during the year fell 14.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.0% in FY21 as against 26.7% in FY20.
• Depreciation charges decreased by 4.3% and finance costs increased by 6.8% YoY, respectively.
• Other income grew by 112.0% YoY.
• Net profit for the year grew by 12.6% YoY.
• Net profit margins during the year grew from 8.5% in FY20 to 11.3% in FY21.

MARATHON NEXTGEN Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,411	2,055	-14.8%
Other income	Rs m	83	176	112.0%
Total Revenues	Rs m	2,494	2,231	-10.5%
Gross profit	Rs m	643	637	-0.9%
Depreciation	Rs m	57	54	-4.3%
Interest	Rs m	410	438	6.8%
Profit before tax	Rs m	259	321	23.8%
Tax	Rs m	54	89	66.7%
Profit after tax	Rs m	206	232	12.6%
Gross profit margin	%	26.7	31.0
Effective tax rate	%	20.7	27.8
Net profit margin	%	8.5	11.3

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MARATHON NEXTGEN Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 4 billion as compared to Rs 6 billion in FY20, thereby witnessing an decrease of -30.7%.
• Long-term debt stood at Rs 7 billion as compared to Rs 4 billion during FY20, a growth of 53.5%.
• Current assets rose 32% and stood at Rs 9 billion, while fixed assets fell 17% and stood at Rs 7 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 17 billion as against Rs 16 billion during FY20, thereby witnessing a growth of 5%.

MARATHON NEXTGEN Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,933	6,088	2.6
Current Liabilities	Rs m	5,523	3,825	-30.7
Long-term Debt	Rs m	4,348	6,673	53.5
Total Liabilities	Rs m	16,153	16,940	4.9
Current assets	Rs m	7,170	9,494	32.4
Fixed Assets	Rs m	8,983	7,446	-17.1
Total Assets	Rs m	16,153	16,940	4.9

MARATHON NEXTGEN Cash Flow Statement Analysis

• MARATHON NEXTGEN's cash flow from operating activities (CFO) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -26 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 1 billion, an improvement of 141% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 321 million from the Rs 66 million net cash flows seen during FY20.

MARATHON NEXTGEN Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	180	-1,093	-
Cash Flow from Investing Activities	Rs m	-711	-26	-
Cash Flow from Financing Activities	Rs m	597	1,441	141.4%
Net Cash Flow	Rs m	66	321	384.1%

Current Valuations for MARATHON NEXTGEN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.0, an improvement from the EPS of Rs 4.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 61.9, stands at 13.6 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 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 12.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	52.4	44.7
TTM Earnings per share	Rs	4.5	5.0
Diluted earnings per share	Rs	4.1	4.6
Price to Cash Flow	x	7.9	12.1
TTM P/E ratio	x	10.1	13.6
Price / Book Value ratio	x	0.8	0.6
Market Cap	Rs m	4,549	3,468
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MARATHON NEXTGEN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY21, from 1.3x during FY20. 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 1.7x during FY21, from 1.6x during FY20. 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 3.8% during FY21, from 3.5% during FY21. 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 5.9% during FY21, from 6.5% during FY20. 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 4.0% during FY21, from 3.8% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.3	2.5
Debtors’ Days	Days	330	892
Interest coverage	x	1.6	1.7
Debt to equity ratio	x	0.7	1.1
Return on assets	%	3.8	4.0
Return on equity	%	3.5	3.8
Return on capital employed	%	6.5	5.9

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

MARATHON NEXTGEN Share Price Performance

Over the last one year, MARATHON NEXTGEN share price has moved up from Rs 40.9 to Rs 61.9, registering a gain of Rs 21.0 or around 51.2%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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