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MAGELLANIC CLOUD 2021-22 Annual Report Analysis

Thu, 31 Mar

MAGELLANIC CLOUD 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.

MAGELLANIC CLOUD Income Statement Analysis

• Operating income during the year rose 19.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 370.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.8% in FY22 as against 0.7% in FY21.
• Depreciation charges increased by 89.1% and finance costs increased by 73.7% YoY, respectively.
• Other income grew by 1307.1% YoY.
• Net profit for the year grew by 1552.2% YoY.
• Net profit margins during the year grew from 0.8% in FY21 to 11.7% in FY22.

MAGELLANIC CLOUD Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	2,119	2,527	19.2%
Other income	Rs m	21	301	1,307.1%
Total Revenues	Rs m	2,141	2,828	32.1%
Gross profit	Rs m	15	72	370.6%
Depreciation	Rs m	14	27	89.1%
Interest	Rs m	10	18	73.7%
Profit before tax	Rs m	12	328	2,608.8%
Tax	Rs m	-6	33	NA
Profit after tax	Rs m	18	295	1,552.2%
Gross profit margin	%	0.7	2.8
Effective tax rate	%	-47.2	10.2
Net profit margin	%	0.8	11.7

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MAGELLANIC CLOUD Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 480 million as compared to Rs 261 million in FY21, thereby witnessing an increase of 84.0%.
• Long-term debt down at Rs 629 million as compared to Rs 681 million during FY21, a fall of 7.7%.
• Current assets rose 52% and stood at Rs 1 billion, while fixed assets rose 0% and stood at Rs 758 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 2 billion as against Rs 2 billion during FY21, thereby witnessing a growth of 26%.

MAGELLANIC CLOUD Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	535	772	44.4
Current Liabilities	Rs m	261	480	84.0
Long-term Debt	Rs m	681	629	-7.7
Total Liabilities	Rs m	1,526	1,927	26.3
Current assets	Rs m	768	1,169	52.2
Fixed Assets	Rs m	758	758	0.0
Total Assets	Rs m	1,526	1,927	26.3

MAGELLANIC CLOUD Cash Flow Statement Analysis

• MAGELLANIC CLOUD's cash flow from operating activities (CFO) during FY22 stood at Rs 495 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -41 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 75 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 528 million from the Rs -44 million net cash flows seen during FY21.

MAGELLANIC CLOUD 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	-147	495	-
Cash Flow from Investing Activities	Rs m	-208	-41	-
Cash Flow from Financing Activities	Rs m	311	75	-76.0%
Net Cash Flow	Rs m	-44	528	-

Current Valuations for MAGELLANIC CLOUD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.7, 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 98.9, stands at 39.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.0 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 19.0 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	84.2	100.4
TTM Earnings per share	Rs	0.7	11.7
Diluted earnings per share	Rs	0.2	2.5
Price to Cash Flow	x	59.4	19.0
TTM P/E ratio	x	107.2	39.2
Price / Book Value ratio	x	2.5	7.9
Market Cap	Rs m	1,353	6,107
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for MAGELLANIC CLOUD

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY22, from 2.9x 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 19.5x during FY22, from 2.2x 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 38.2% during FY22, from 3.3% 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 24.7% during FY22, from 1.8% 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 16.2% during FY22, from 1.8% 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	2.9	2.4
Debtors’ Days	Days	78,069,859	59,921,160
Interest coverage	x	2.2	19.5
Debt to equity ratio	x	1.3	0.8
Return on assets	%	1.8	16.2
Return on equity	%	3.3	38.2
Return on capital employed	%	1.8	24.7

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

MAGELLANIC CLOUD Share Price Performance

Over the last one year, MAGELLANIC CLOUD share price has moved up from Rs 16.4 to Rs 98.9, registering a gain of Rs 82.5 or around 504.8%.

Overall, the S&P BSE SENSEX is up 16.8% over the year.

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