METALYST FORGINGS 2022-23 Annual Report Analysis

Thu, 15 Feb

METALYST FORGINGS 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.

METALYST FORGINGS Income Statement Analysis

• Operating income during the year rose 13.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 26.3% in FY23 as against 0.6% in FY22.
• Depreciation charges decreased by 2.5% and finance costs increased by 8.6% YoY, respectively.
• Other income declined by 24.3% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 109.4% in FY22 to 120.0% in FY23.

METALYST FORGINGS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,307	2,616	13.4%
Other income	Rs m	6	4	-24.3%
Total Revenues	Rs m	2,313	2,620	13.3%
Gross profit	Rs m	-15	-689	NA
Depreciation	Rs m	2,502	2,438	-2.5%
Interest	Rs m	14	16	8.6%
Profit before tax	Rs m	-2,525	-3,139	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-2,525	-3,139	NA
Gross profit margin	%	-0.6	-26.3
Effective tax rate	%	0.0	0.0
Net profit margin	%	-109.4	-120.0

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METALYST FORGINGS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 40 billion as compared to Rs 40 billion in FY22, thereby witnessing an increase of 0.0%.
• Long-term debt stood at Rs 4 billion as compared to Rs 4 billion during FY22, a growth of 0.4%.
• Current assets fell 31% and stood at Rs 2 billion, while fixed assets fell 14% and stood at Rs 15 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 16 billion as against Rs 19 billion during FY22, thereby witnessing a fall of 16%.

METALYST FORGINGS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-22,119	-25,253	NA
Current Liabilities	Rs m	39,847	39,856	0.0
Long-term Debt	Rs m	3,552	3,565	0.4
Total Liabilities	Rs m	19,455	16,340	-16.0
Current assets	Rs m	2,225	1,541	-30.7
Fixed Assets	Rs m	17,230	14,799	-14.1
Total Assets	Rs m	19,455	16,340	-16.0

METALYST FORGINGS Cash Flow Statement Analysis

• METALYST FORGINGS's cash flow from operating activities (CFO) during FY23 stood at Rs -20 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 8 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 0 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -12 million from the Rs -1 million net cash flows seen during FY22.

METALYST FORGINGS 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	-21	-20	-
Cash Flow from Investing Activities	Rs m	20	8	-59.5%
Cash Flow from Financing Activities	Rs m	0	0	-
Net Cash Flow	Rs m	-1	-12	-

Current Valuations for METALYST FORGINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -72.1, an decline from the EPS of Rs -58.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2.5, stands at 0.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.0 times.
• The company's price to cash flow (P/CF) ratio stood at -0.3 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	53.0	60.1
TTM Earnings per share	Rs	-58.0	-72.1
Diluted earnings per share	Rs	-58.0	-72.1
Price to Cash Flow	x	-10.1	-0.3
TTM P/E ratio	x	-0.1	0.0
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	302	192
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for METALYST FORGINGS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.0x during FY23, from 0.1x 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 -198.5x during FY23, from -173.4x 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 12.4% during FY23, from 11.4% 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 14.4% during FY23, from 13.5% 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 -19.1% during FY23, from -12.9% 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	0.1	0.0
Debtors’ Days	Days	1,717	544
Interest coverage	x	-173.4	-198.5
Debt to equity ratio	x	-0.2	-0.1
Return on assets	%	-12.9	-19.1
Return on equity	%	11.4	12.4
Return on capital employed	%	13.5	14.4

To see how METALYST FORGINGS has performed over the last 5 years, please visit here.

METALYST FORGINGS Share Price Performance

Over the last one year, METALYST FORGINGS share price has moved down from Rs 5.4 to Rs 2.5, registering a loss of Rs 2.9 or around 53.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,184.9 (up 0.6%). Over the last one year it has moved up from 0.0 to 19,184.9, a gain of 19,185 points (up 0.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for METALYST FORGINGS and quarterly results for METALYST FORGINGS)