MPS 2023-24 Annual Report Analysis

Mon, 22 Jul

MPS 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.

MPS Income Statement Analysis

• Operating income during the year rose 8.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.1% in FY24 as against 31.0% in FY23.
• Depreciation charges increased by 2.5% and finance costs decreased by 22.2% YoY, respectively.
• Other income grew by 3.7% YoY.
• Net profit for the year grew by 8.8% YoY.
• Net profit margins during the year declined from 21.8% in FY23 to 21.8% in FY24.

MPS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,010	5,453	8.8%
Other income	Rs m	121	126	3.7%
Total Revenues	Rs m	5,132	5,579	8.7%
Gross profit	Rs m	1,554	1,695	9.1%
Depreciation	Rs m	195	200	2.5%
Interest	Rs m	11	9	-22.2%
Profit before tax	Rs m	1,469	1,613	9.8%
Tax	Rs m	377	425	12.6%
Profit after tax	Rs m	1,092	1,188	8.8%
Gross profit margin	%	31.0	31.1
Effective tax rate	%	25.7	26.3
Net profit margin	%	21.8	21.8

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MPS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 84.8%.
• Current assets fell 3% and stood at Rs 4 billion, while fixed assets rose 41% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 20%.

MPS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,271	4,594	7.5
Current Liabilities	Rs m	1,314	2,428	84.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	8,218	9,887	20.3
Current assets	Rs m	3,814	3,692	-3.2
Fixed Assets	Rs m	4,403	6,195	40.7
Total Assets	Rs m	8,218	9,887	20.3

MPS Cash Flow Statement Analysis

• MPS's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 4.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 251 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -934 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 500 million from the Rs -215 million net cash flows seen during FY23.

MPS 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	1,128	1,180	4.6%
Cash Flow from Investing Activities	Rs m	-647	251	-
Cash Flow from Financing Activities	Rs m	-701	-934	-
Net Cash Flow	Rs m	-215	500	-

Current Valuations for MPS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 69.4, an improvement from the EPS of Rs 63.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,051.2, stands at 29.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.6 times, while the price to sales ratio stands at 6.4 times.
• The company's price to cash flow (P/CF) ratio stood at 16.6 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	292.8	318.7
TTM Earnings per share	Rs	63.8	69.4
Diluted earnings per share	Rs	63.8	69.4
Price to Cash Flow	x	14.2	16.6
TTM P/E ratio	x	16.7	29.5
Price / Book Value ratio	x	3.5	5.0
Market Cap	Rs m	15,004	23,037
Dividends per share (Unadj.)	Rs	20.0	75.0

Ratio Analysis for MPS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 2.9x 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 188.1x during FY24, from 133.6x 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 improved and stood at 25.9% during FY24, from 25.6% 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 35.3% during FY24, from 34.7% 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 12.1% during FY24, from 13.4% 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	2.9	1.5
Debtors’ Days	Days	631	674
Interest coverage	x	133.6	188.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.4	12.1
Return on equity	%	25.6	25.9
Return on capital employed	%	34.7	35.3

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

MPS Share Price Performance

Over the last one year, MPS share price has moved up from Rs 1,175.8 to Rs 2,051.2, registering a gain of Rs 875.4 or around 74.5%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

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