MENON PISTON 2022-23 Annual Report Analysis

Wed, 19 Jul

MENON PISTON 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.

MENON PISTON Income Statement Analysis

• Operating income during the year rose 18.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.7% in FY23 as against 16.2% in FY22.
• Depreciation charges increased by 44.4% and finance costs increased by 96.4% YoY, respectively.
• Other income grew by 195.6% YoY.
• Net profit for the year grew by 24.1% YoY.
• Net profit margins during the year grew from 8.8% in FY22 to 9.3% in FY23.

MENON PISTON Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,124	2,515	18.4%
Other income	Rs m	3	9	195.6%
Total Revenues	Rs m	2,128	2,524	18.6%
Gross profit	Rs m	345	471	36.5%
Depreciation	Rs m	69	99	44.4%
Interest	Rs m	15	29	96.4%
Profit before tax	Rs m	264	352	33.0%
Tax	Rs m	76	118	54.9%
Profit after tax	Rs m	188	233	24.1%
Gross profit margin	%	16.2	18.7
Effective tax rate	%	28.9	33.7
Net profit margin	%	8.8	9.3

Revealed: Our 'Shadow Investing' Secret for Small Cap Stocks

MENON PISTON Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 489 million as compared to Rs 406 million in FY22, thereby witnessing an increase of 20.5%.
• Long-term debt down at Rs 50 million as compared to Rs 189 million during FY22, a fall of 73.5%.
• Current assets rose 2% and stood at Rs 974 million, while fixed assets rose 22% and stood at Rs 768 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 10%.

MENON PISTON Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	966	1,177	21.8
Current Liabilities	Rs m	406	489	20.5
Long-term Debt	Rs m	189	50	-73.5
Total Liabilities	Rs m	1,582	1,742	10.1
Current assets	Rs m	950	974	2.5
Fixed Assets	Rs m	632	768	21.5
Total Assets	Rs m	1,582	1,742	10.1

MENON PISTON Cash Flow Statement Analysis

• MENON PISTON's cash flow from operating activities (CFO) during FY23 stood at Rs 487 million, an improvement of 3,578.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -242 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -253 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -9 million from the Rs -121 million net cash flows seen during FY22.

MENON PISTON 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	13	487	3,578.8%
Cash Flow from Investing Activities	Rs m	-263	-242	-
Cash Flow from Financing Activities	Rs m	129	-253	-
Net Cash Flow	Rs m	-121	-9	-

Current Valuations for MENON PISTON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.6, an improvement from the EPS of Rs 3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 56.6, stands at 8.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 7.4 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	41.7	49.3
TTM Earnings per share	Rs	3.7	4.6
Diluted earnings per share	Rs	3.7	4.6
Price to Cash Flow	x	9.7	7.4
TTM P/E ratio	x	13.3	8.7
Price / Book Value ratio	x	2.1	2.1
Market Cap	Rs m	2,051	2,453
Dividends per share (Unadj.)	Rs	0.8	1.0

Ratio Analysis for MENON PISTON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY23, from 2.3x 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 13.1x during FY23, from 18.8x 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 19.8% during FY23, from 19.5% 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 31.1% during FY23, from 24.2% 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 15.1% during FY23, from 12.8% 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	2.3	2.0
Debtors’ Days	Days	1,023	803
Interest coverage	x	18.8	13.1
Debt to equity ratio	x	0.2	0.0
Return on assets	%	12.8	15.1
Return on equity	%	19.5	19.8
Return on capital employed	%	24.2	31.1

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

MENON PISTON Share Price Performance

Over the last one year, MENON PISTON share price has moved up from Rs 45.3 to Rs 56.6, registering a gain of Rs 11.3 or around 24.9%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

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