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MAWANA SUGARS 2022-23 Annual Report Analysis

Thu, 22 Jun

MAWANA SUGARS 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.

MAWANA SUGARS Income Statement Analysis

• Operating income during the year rose 0.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 24.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.1% in FY23 as against 6.7% in FY22.
• Depreciation charges decreased by 10.2% and finance costs increased by 8.3% YoY, respectively.
• Other income declined by 15.9% YoY.
• Net profit for the year declined by 49.8% YoY.
• Net profit margins during the year declined from 1.8% in FY22 to 0.9% in FY23.

MAWANA SUGARS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,781	14,817	0.2%
Other income	Rs m	36	31	-15.9%
Total Revenues	Rs m	14,818	14,848	0.2%
Gross profit	Rs m	997	757	-24.1%
Depreciation	Rs m	397	356	-10.2%
Interest	Rs m	258	279	8.3%
Profit before tax	Rs m	379	152	-59.8%
Tax	Rs m	118	21	-82.1%
Profit after tax	Rs m	262	131	-49.8%
Gross profit margin	%	6.7	5.1
Effective tax rate	%	31.0	13.8
Net profit margin	%	1.8	0.9

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MAWANA SUGARS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 2.6%.
• Long-term debt down at Rs 72 million as compared to Rs 407 million during FY22, a fall of 82.3%.
• Current assets fell 3% and stood at Rs 8 billion, while fixed assets rose 2% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 10 billion as against Rs 10 billion during FY22, thereby witnessing a fall of 2%.

MAWANA SUGARS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,843	3,843	0.0
Current Liabilities	Rs m	6,153	6,311	2.6
Long-term Debt	Rs m	407	72	-82.3
Total Liabilities	Rs m	10,207	10,043	-1.6
Current assets	Rs m	7,974	7,725	-3.1
Fixed Assets	Rs m	2,231	2,271	1.8
Total Assets	Rs m	10,207	10,043	-1.6

MAWANA SUGARS Cash Flow Statement Analysis

• MAWANA SUGARS's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -386 million, an improvement of 190.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -758 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -60 million from the Rs -574 million net cash flows seen during FY22.

MAWANA SUGARS 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	-1,511	1,084	-
Cash Flow from Investing Activities	Rs m	-133	-386	-
Cash Flow from Financing Activities	Rs m	1,069	-758	-
Net Cash Flow	Rs m	-574	-60	-

Current Valuations for MAWANA SUGARS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.4, an decline from the EPS of Rs 6.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 105.8, stands at 30.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 10.2 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	377.8	378.8
TTM Earnings per share	Rs	6.7	3.4
Diluted earnings per share	Rs	6.7	3.4
Price to Cash Flow	x	7.9	10.2
TTM P/E ratio	x	20.9	30.7
Price / Book Value ratio	x	1.0	1.3
Market Cap	Rs m	3,993	4,982
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for MAWANA SUGARS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY23, from 1.3x 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 1.5x during FY23, from 2.5x 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 3.4% during FY23, from 6.8% 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 11.0% during FY23, from 15.0% 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 4.1% during FY23, from 5.1% 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	1.3	1.2
Debtors’ Days	Days	1	1
Interest coverage	x	2.5	1.5
Debt to equity ratio	x	0.1	0.0
Return on assets	%	5.1	4.1
Return on equity	%	6.8	3.4
Return on capital employed	%	15.0	11.0

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

MAWANA SUGARS Share Price Performance

Over the last one year, MAWANA SUGARS share price has moved up from Rs 96.1 to Rs 105.8, registering a gain of Rs 9.7 or around 10.0%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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