MAHINDRA LIFESPACE 2023-24 Annual Report Analysis

Wed, 3 Jul

MAHINDRA LIFESPACE 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.

MAHINDRA LIFESPACE Income Statement Analysis

• Operating income during the year fell 65.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 88.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.0% in FY24 as against 12.5% in FY23.
• Depreciation charges increased by 12.5% and finance costs decreased by 32.3% YoY, respectively.
• Other income grew by 26.6% YoY.
• Net profit for the year declined by 4.4% YoY.
• Net profit margins during the year grew from 17.0% in FY23 to 46.4% in FY24.

MAHINDRA LIFESPACE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,066	2,121	-65.0%
Other income	Rs m	530	670	26.6%
Total Revenues	Rs m	6,596	2,791	-57.7%
Gross profit	Rs m	758	84	-88.9%
Depreciation	Rs m	122	137	12.5%
Interest	Rs m	109	74	-32.3%
Profit before tax	Rs m	1,057	543	-48.6%
Tax	Rs m	28	-440	NA
Profit after tax	Rs m	1,028	983	-4.4%
Gross profit margin	%	12.5	4.0
Effective tax rate	%	2.7	-81.1
Net profit margin	%	17.0	46.4

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MAHINDRA LIFESPACE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 24 billion as compared to Rs 18 billion in FY23, thereby witnessing an increase of 35.7%.
• Long-term debt stood at Rs 6 billion as compared to Rs 77 million during FY23, a growth of 8304.2%.
• Current assets rose 43% and stood at Rs 39 billion, while fixed assets rose 14% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 49 billion as against Rs 36 billion during FY23, thereby witnessing a growth of 37%.

MAHINDRA LIFESPACE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	18,023	18,688	3.7
Current Liabilities	Rs m	17,907	24,306	35.7
Long-term Debt	Rs m	77	6,480	8,304.2
Total Liabilities	Rs m	35,515	48,572	36.8
Current assets	Rs m	27,183	38,847	42.9
Fixed Assets	Rs m	8,333	9,471	13.7
Total Assets	Rs m	35,515	48,572	36.8

MAHINDRA LIFESPACE Cash Flow Statement Analysis

• MAHINDRA LIFESPACE 's cash flow from operating activities (CFO) during FY24 stood at Rs -7 billion, an improvement of 345.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 2 billion, an improvement of 669.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 5 billion, an improvement of 1,906% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 416 million from the Rs -1 billion net cash flows seen during FY23.

MAHINDRA LIFESPACE 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	-1,484	-6,614	-
Cash Flow from Investing Activities	Rs m	278	2,143	669.9%
Cash Flow from Financing Activities	Rs m	-271	4,887	-
Net Cash Flow	Rs m	-1,490	416	-

Current Valuations for MAHINDRA LIFESPACE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.3, an decline from the EPS of Rs 6.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 601.4, stands at -114.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 44.0 times.
• The company's price to cash flow (P/CF) ratio stood at 68.0 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	39.2	13.7
TTM Earnings per share	Rs	6.6	6.3
Diluted earnings per share	Rs	6.6	6.3
Price to Cash Flow	x	47.5	68.0
TTM P/E ratio	x	-357.2	-114.9
Price / Book Value ratio	x	3.7	4.1
Market Cap	Rs m	66,789	76,172
Dividends per share (Unadj.)	Rs	2.3	2.7

Ratio Analysis for MAHINDRA LIFESPACE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x 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 8.3x during FY24, from 10.7x 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 5.3% during FY24, from 5.7% 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 declined and down at 2.5% during FY24, from 6.4% 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 declined and down at 2.2% during FY24, from 3.2% 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	1.6
Debtors’ Days	Days	777	1,845
Interest coverage	x	10.7	8.3
Debt to equity ratio	x	0.0	0.3
Return on assets	%	3.2	2.2
Return on equity	%	5.7	5.3
Return on capital employed	%	6.4	2.5

To see how MAHINDRA LIFESPACE has performed over the last 5 years, please visit here.

MAHINDRA LIFESPACE Share Price Performance

Over the last one year, MAHINDRA LIFESPACE share price has moved up from Rs 467.5 to Rs 601.4, registering a gain of Rs 133.9 or around 28.6%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,676.6 (up 0.9%). Over the last one year it has moved up from 4,196.4 to 8,676.6, a gain of 4,480 points (up 106.8%).

Overall, the S&P BSE SENSEX is up 21.8% over the year.

(To know more, check out historical annual results for MAHINDRA LIFESPACE and quarterly results for MAHINDRA LIFESPACE )