MACFOS 2023-24 Annual Report Analysis

Wed, 21 Aug

MACFOS 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.

MACFOS Income Statement Analysis

• Operating income during the year rose 56.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 43.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.4% in FY24 as against 13.6% in FY23.
• Depreciation charges increased by 50.9% and finance costs increased by 36.4% YoY, respectively.
• Other income grew by 94.2% YoY.
• Net profit for the year grew by 46.1% YoY.
• Net profit margins during the year declined from 9.2% in FY23 to 8.7% in FY24.

MACFOS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	802	1,251	56.1%
Other income	Rs m	6	12	94.2%
Total Revenues	Rs m	808	1,264	56.4%
Gross profit	Rs m	109	156	43.0%
Depreciation	Rs m	5	7	50.9%
Interest	Rs m	10	14	36.4%
Profit before tax	Rs m	101	147	46.6%
Tax	Rs m	26	39	47.9%
Profit after tax	Rs m	74	108	46.1%
Gross profit margin	%	13.6	12.4
Effective tax rate	%	26.3	26.5
Net profit margin	%	9.2	8.7

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

MACFOS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 202 million as compared to Rs 121 million in FY23, thereby witnessing an increase of 66.5%.
• Long-term debt down at Rs 22 million as compared to Rs 41 million during FY23, a fall of 45.7%.
• Current assets rose 47% and stood at Rs 382 million, while fixed assets rose 75% and stood at Rs 118 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 500 million as against Rs 327 million during FY23, thereby witnessing a growth of 53%.

MACFOS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	165	273	65.6
Current Liabilities	Rs m	121	202	66.5
Long-term Debt	Rs m	41	22	-45.7
Total Liabilities	Rs m	327	500	52.9
Current assets	Rs m	259	382	47.1
Fixed Assets	Rs m	67	118	75.0
Total Assets	Rs m	327	500	52.9

MACFOS Cash Flow Statement Analysis

• MACFOS's cash flow from operating activities (CFO) during FY24 stood at Rs 50 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -58 million, an improvement of 12.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 million, an improvement of 157% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -5 million from the Rs 3 million net cash flows seen during FY23.

MACFOS 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	60	50	-16.2%
Cash Flow from Investing Activities	Rs m	-51	-58	-
Cash Flow from Financing Activities	Rs m	-6	3	-
Net Cash Flow	Rs m	3	-5	-

Current Valuations for MACFOS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.2, an improvement from the EPS of Rs 8.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 846.0, stands at 53.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 29.2 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 27.4 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	90.7	141.6
TTM Earnings per share	Rs	8.4	12.2
Diluted earnings per share	Rs	7.9	11.5
Price to Cash Flow	x	20.7	27.4
TTM P/E ratio	x	22.0	53.7
Price / Book Value ratio	x	8.7	11.5
Market Cap	Rs m	1,427	3,153
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MACFOS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x 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 improved and stood at 11.7x during FY24, from 10.9x 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 39.6% during FY24, from 44.9% 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 54.6% during FY24, from 53.8% 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 24.4% during FY24, from 25.8% 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	2.1	1.9
Debtors’ Days	Days	111	101
Interest coverage	x	10.9	11.7
Debt to equity ratio	x	0.2	0.1
Return on assets	%	25.8	24.4
Return on equity	%	44.9	39.6
Return on capital employed	%	53.8	54.6

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

MACFOS Share Price Performance

Over the last one year, MACFOS share price has moved up from Rs 354.3 to Rs 846.0, registering a gain of Rs 491.7 or around 138.8%.

Overall, the S&P BSE SENSEX is up 23.7% over the year.

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