MUNJAL AUTO 2023-24 Annual Report Analysis

Wed, 23 Oct

MUNJAL AUTO 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.

MUNJAL AUTO Income Statement Analysis

• Operating income during the year fell 5.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.8% in FY24 as against 6.9% in FY23.
• Depreciation charges increased by 5.1% and finance costs increased by 1.7% YoY, respectively.
• Other income grew by 183.0% YoY.
• Net profit for the year declined by 26.3% YoY.
• Net profit margins during the year declined from 2.6% in FY23 to 2.0% in FY24.

MUNJAL AUTO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	19,843	18,818	-5.2%
Other income	Rs m	127	361	183.0%
Total Revenues	Rs m	19,970	19,178	-4.0%
Gross profit	Rs m	1,376	1,084	-21.2%
Depreciation	Rs m	530	557	5.1%
Interest	Rs m	271	275	1.7%
Profit before tax	Rs m	703	612	-12.8%
Tax	Rs m	186	232	24.6%
Profit after tax	Rs m	516	380	-26.3%
Gross profit margin	%	6.9	5.8
Effective tax rate	%	26.5	37.9
Net profit margin	%	2.6	2.0

Dear Reader: If You Invest in Midcap Stocks, this is for You

MUNJAL AUTO Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 6 billion in FY23, thereby witnessing an decrease of -9.9%.
• Long-term debt down at Rs 183 million as compared to Rs 319 million during FY23, a fall of 42.5%.
• Current assets fell 6% and stood at Rs 8 billion, while fixed assets fell 3% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 13 billion during FY23, thereby witnessing a fall of 5%.

MUNJAL AUTO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,843	4,012	4.4
Current Liabilities	Rs m	6,417	5,784	-9.9
Long-term Debt	Rs m	319	183	-42.5
Total Liabilities	Rs m	12,665	12,049	-4.9
Current assets	Rs m	7,986	7,517	-5.9
Fixed Assets	Rs m	4,562	4,415	-3.2
Total Assets	Rs m	12,665	12,049	-4.9

MUNJAL AUTO Cash Flow Statement Analysis

• MUNJAL AUTO's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 281.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -773 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -526 million, an improvement of 19% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -26 million from the Rs 56 million net cash flows seen during FY23.

MUNJAL AUTO 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	334	1,272	281.1%
Cash Flow from Investing Activities	Rs m	371	-773	-
Cash Flow from Financing Activities	Rs m	-649	-526	-
Net Cash Flow	Rs m	56	-26	-

Current Valuations for MUNJAL AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.8, an decline from the EPS of Rs 5.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 133.6, stands at 34.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 8.1 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	198.4	188.2
TTM Earnings per share	Rs	5.2	3.8
Diluted earnings per share	Rs	5.2	3.8
Price to Cash Flow	x	3.5	8.1
TTM P/E ratio	x	7.0	34.9
Price / Book Value ratio	x	1.2	1.9
Market Cap	Rs m	4,628	7,628
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for MUNJAL AUTO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.2x 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 3.2x during FY24, from 3.6x 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 9.5% during FY24, from 13.4% 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 declined and down at 21.2% during FY24, from 23.4% 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 5.4% during FY24, from 6.2% 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	1.2	1.3
Debtors’ Days	Days	804	536
Interest coverage	x	3.6	3.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	6.2	5.4
Return on equity	%	13.4	9.5
Return on capital employed	%	23.4	21.2

To see how MUNJAL AUTO has performed over the last 5 years, please visit here.

MUNJAL AUTO Share Price Performance

Over the last one year, MUNJAL AUTO share price has moved up from Rs 54.1 to Rs 133.6, registering a gain of Rs 79.5 or around 146.9%.

Overall, the S&P BSE SENSEX is up 24.3% over the year.

(To know more, check out historical annual results for MUNJAL AUTO and quarterly results for MUNJAL AUTO)