MUFIN GREEN FINANCE 2023-24 Annual Report Analysis

Wed, 27 Nov

MUFIN GREEN FINANCE has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

MUFIN GREEN FINANCE Income Statement Analysis

• Operating income during the year rose 183.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 266.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 69.4% in FY24 as against 53.6% in FY23.
• Depreciation charges increased by 24.8% and finance costs increased by 649.2% YoY, respectively.
• Other income grew by 360.4% YoY.
• Net profit for the year grew by 97.9% YoY.
• Net profit margins during the year declined from 23.5% in FY23 to 16.4% in FY24.

MUFIN GREEN FINANCE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	345	978	183.6%
Other income	Rs m	1	6	360.4%
Total Revenues	Rs m	346	984	184.4%
Gross profit	Rs m	185	678	266.9%
Depreciation	Rs m	18	23	24.8%
Interest	Rs m	60	449	649.2%
Profit before tax	Rs m	108	212	96.8%
Tax	Rs m	27	52	93.3%
Profit after tax	Rs m	81	161	97.9%
Gross profit margin	%	53.6	69.4
Effective tax rate	%	24.8	24.4
Net profit margin	%	23.5	16.4

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MUFIN GREEN FINANCE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 234.4%.
• Long-term debt stood at Rs 646 million as compared to Rs 583 million during FY23, a growth of 10.9%.
• Current assets rose 135% and stood at Rs 9 billion, while fixed assets rose 121% and stood at Rs 136 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 134%.

MUFIN GREEN FINANCE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,522	2,230	46.5
Current Liabilities	Rs m	1,835	6,137	234.4
Long-term Debt	Rs m	583	646	10.9
Total Liabilities	Rs m	3,949	9,256	134.4
Current assets	Rs m	3,887	9,120	134.6
Fixed Assets	Rs m	62	136	121.4
Total Assets	Rs m	3,949	9,256	134.4

MUFIN GREEN FINANCE Cash Flow Statement Analysis

• MUFIN GREEN FINANCE's cash flow from operating activities (CFO) during FY24 stood at Rs -4 billion, an improvement of 104.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -570 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 5 billion, an improvement of 81% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 705 million from the Rs 79 million net cash flows seen during FY23.

MUFIN GREEN FINANCE Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-1,753	-3,587	-
Cash Flow from Investing Activities	Rs m	-854	-570	-
Cash Flow from Financing Activities	Rs m	2,687	4,862	81.0%
Net Cash Flow	Rs m	79	705	790.9%

Current Valuations for MUFIN GREEN FINANCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.0, an decline from the EPS of Rs 1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 119.1, stands at 104.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.7 times, while the price to sales ratio stands at 19.7 times.
• The company's price to cash flow (P/CF) ratio stood at 136.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	6.9	6.0
TTM Earnings per share	Rs	1.6	1.0
Diluted earnings per share	Rs	0.5	1.0
Price to Cash Flow	x	185.1	136.1
TTM P/E ratio	x	227.0	104.3
Price / Book Value ratio	x	2.9	11.2
Market Cap	Rs m	4,359	24,972
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MUFIN GREEN FINANCE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 2.1x during FY23. 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 FY24, from 2.8x during FY23. 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 7.2% during FY24, from 5.3% during FY24. 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 23.0% during FY24, from 8.0% during FY23. 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 6.6% during FY24, from 3.6% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.1	1.5
Debtors’ Days	Days	36	1
Interest coverage	x	2.8	1.5
Debt to equity ratio	x	0.4	0.3
Return on assets	%	3.6	6.6
Return on equity	%	5.3	7.2
Return on capital employed	%	8.0	23.0

To see how MUFIN GREEN FINANCE has performed over the last 5 years, please visit here.

MUFIN GREEN FINANCE Share Price Performance

Over the last one year, MUFIN GREEN FINANCE share price has moved up from Rs 112.1 to Rs 119.1, registering a gain of Rs 7.0 or around 6.2%.

Overall, the S&P BSE SENSEX is up 21.3% over the year.

(To know more, check out historical annual results for MUFIN GREEN FINANCE and quarterly results for MUFIN GREEN FINANCE)