MANGALAM ORGANICS 2023-24 Annual Report Analysis

Tue, 27 Aug

MANGALAM ORGANICS 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.

MANGALAM ORGANICS Income Statement Analysis

• Operating income during the year rose 0.2% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.8% in FY24 as against 0.6% in FY23.
• Depreciation charges increased by 13.1% and finance costs increased by 13.3% YoY, respectively.
• Other income grew by 130.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 5.5% in FY23 to 0.9% in FY24.

MANGALAM ORGANICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,925	4,935	0.2%
Other income	Rs m	3	8	130.3%
Total Revenues	Rs m	4,929	4,943	0.3%
Gross profit	Rs m	-28	387	NA
Depreciation	Rs m	175	198	13.1%
Interest	Rs m	138	156	13.3%
Profit before tax	Rs m	-338	40	NA
Tax	Rs m	-65	-3	NA
Profit after tax	Rs m	-272	43	NA
Gross profit margin	%	-0.6	7.8
Effective tax rate	%	19.4	-7.5
Net profit margin	%	-5.5	0.9

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MANGALAM ORGANICS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -2.9%.
• Long-term debt down at Rs 208 million as compared to Rs 415 million during FY23, a fall of 49.8%.
• Current assets fell 15% and stood at Rs 2 billion, while fixed assets rose 8% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 5 billion during FY23, thereby witnessing a fall of 4%.

MANGALAM ORGANICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,757	2,807	1.8
Current Liabilities	Rs m	1,862	1,809	-2.9
Long-term Debt	Rs m	415	208	-49.8
Total Liabilities	Rs m	5,030	4,831	-4.0
Current assets	Rs m	2,636	2,251	-14.6
Fixed Assets	Rs m	2,393	2,580	7.8
Total Assets	Rs m	5,030	4,831	-4.0

MANGALAM ORGANICS Cash Flow Statement Analysis

• MANGALAM ORGANICS's cash flow from operating activities (CFO) during FY24 stood at Rs 727 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -395 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -326 million, an improvement of 9% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 7 million from the Rs 6 million net cash flows seen during FY23.

MANGALAM ORGANICS 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	769	727	-5.5%
Cash Flow from Investing Activities	Rs m	-408	-395	-
Cash Flow from Financing Activities	Rs m	-356	-326	-
Net Cash Flow	Rs m	6	7	17.0%

Current Valuations for MANGALAM ORGANICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.0, an improvement from the EPS of Rs -31.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 520.6, stands at 78.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 14.4 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	575.4	576.5
TTM Earnings per share	Rs	-31.8	5.0
Diluted earnings per share	Rs	-31.8	5.0
Price to Cash Flow	x	-29.4	14.4
TTM P/E ratio	x	-10.5	78.9
Price / Book Value ratio	x	2.0	1.2
Market Cap	Rs m	5,534	3,465
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MANGALAM ORGANICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.4x 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 improved and stood at 1.3x during FY24, from -1.4x 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 1.5% during FY24, from -9.9% 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 6.5% during FY24, from -6.3% 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 4.1% during FY24, from -2.7% 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	1.4	1.2
Debtors’ Days	Days	35,193,670	41,427,980
Interest coverage	x	-1.4	1.3
Debt to equity ratio	x	0.2	0.1
Return on assets	%	-2.7	4.1
Return on equity	%	-9.9	1.5
Return on capital employed	%	-6.3	6.5

To see how MANGALAM ORGANICS has performed over the last 5 years, please visit here.

MANGALAM ORGANICS Share Price Performance

Over the last one year, MANGALAM ORGANICS share price has moved up from Rs 401.0 to Rs 520.6, registering a gain of Rs 119.6 or around 29.8%.

Overall, the S&P BSE SENSEX is up 24.9% over the year.

(To know more, check out historical annual results for MANGALAM ORGANICS and quarterly results for MANGALAM ORGANICS)