MODI NATURALS 2023-24 Annual Report Analysis

Wed, 20 Nov

MODI NATURALS 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.

MODI NATURALS Income Statement Analysis

• Operating income during the year fell 4.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 69.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.3% in FY24 as against 1.3% in FY23.
• Depreciation charges increased by 170.6% and finance costs increased by 109.3% YoY, respectively.
• Other income declined by 33.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.3% in FY23 to 0.3% in FY24.

MODI NATURALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,180	3,998	-4.3%
Other income	Rs m	17	12	-33.4%
Total Revenues	Rs m	4,197	4,010	-4.5%
Gross profit	Rs m	55	92	69.1%
Depreciation	Rs m	16	42	170.6%
Interest	Rs m	38	79	109.3%
Profit before tax	Rs m	19	-17	NA
Tax	Rs m	8	-4	NA
Profit after tax	Rs m	11	-14	NA
Gross profit margin	%	1.3	2.3
Effective tax rate	%	42.5	20.3
Net profit margin	%	0.3	-0.3

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MODI NATURALS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 884 million in FY23, thereby witnessing an increase of 42.1%.
• Long-term debt down at Rs 857 million as compared to Rs 878 million during FY23, a fall of 2.4%.
• Current assets rose 15% and stood at Rs 2 billion, while fixed assets rose 24% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 17%.

MODI NATURALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	784	906	15.6
Current Liabilities	Rs m	884	1,256	42.1
Long-term Debt	Rs m	878	857	-2.4
Total Liabilities	Rs m	2,627	3,062	16.5
Current assets	Rs m	1,351	1,558	15.4
Fixed Assets	Rs m	1,209	1,504	24.4
Total Assets	Rs m	2,627	3,062	16.5

MODI NATURALS Cash Flow Statement Analysis

• MODI NATURALS's cash flow from operating activities (CFO) during FY24 stood at Rs -68 million, an improvement of 18.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -322 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 371 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -19 million from the Rs -22 million net cash flows seen during FY23.

MODI NATURALS 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	-57	-68	-
Cash Flow from Investing Activities	Rs m	-914	-322	-
Cash Flow from Financing Activities	Rs m	949	371	-60.9%
Net Cash Flow	Rs m	-22	-19	-

Current Valuations for MODI NATURALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.0, an decline from the EPS of Rs 0.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 446.2, stands at 49.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 124.1 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	330.1	300.4
TTM Earnings per share	Rs	0.8	-1.0
Diluted earnings per share	Rs	0.8	-1.0
Price to Cash Flow	x	118.1	124.1
TTM P/E ratio	x	290.6	49.0
Price / Book Value ratio	x	3.7	3.9
Market Cap	Rs m	2,904	3,520
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MODI NATURALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.5x 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 0.8x during FY24, from 1.5x 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 declined and down at -1.5% during FY24, from 1.4% 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 3.5% during FY24, from 3.4% 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 2.1% during FY24, from 1.8% 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	1.5	1.2
Debtors’ Days	Days	170	250
Interest coverage	x	1.5	0.8
Debt to equity ratio	x	1.1	0.9
Return on assets	%	1.8	2.1
Return on equity	%	1.4	-1.5
Return on capital employed	%	3.4	3.5

To see how MODI NATURALS has performed over the last 5 years, please visit here.

MODI NATURALS Share Price Performance

Over the last one year, MODI NATURALS share price has moved up from Rs 261.8 to Rs 446.2, registering a gain of Rs 184.5 or around 70.5%.

Overall, the S&P BSE SENSEX is up 18.2% over the year.

(To know more, check out historical annual results for MODI NATURALS and quarterly results for MODI NATURALS)