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MAMAEARTH 2023-24 Annual Report Analysis

Wed, 7 Aug

MAMAEARTH 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.

MAMAEARTH Income Statement Analysis

• Operating income during the year rose 28.6% 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 7.1% in FY24 as against 8.8% in FY23.
• Depreciation charges increased by 22.6% and finance costs increased by 35.7% YoY, respectively.
• Other income grew by 120.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 10.1% in FY23 to 5.8% in FY24.

MAMAEARTH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	14,927	19,199	28.6%
Other income	Rs m	225	497	120.9%
Total Revenues	Rs m	15,153	19,696	30.0%
Gross profit	Rs m	-1,319	1,370	NA
Depreciation	Rs m	250	306	22.6%
Interest	Rs m	67	90	35.7%
Profit before tax	Rs m	-1,410	1,471	NA
Tax	Rs m	99	366	268.7%
Profit after tax	Rs m	-1,510	1,105	NA
Gross profit margin	%	-8.8	7.1
Effective tax rate	%	-7.0	24.9
Net profit margin	%	-10.1	5.8

For Investors: Our Big Prediction

MAMAEARTH Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 43.1%.
• Current assets rose 76% and stood at Rs 11 billion, while fixed assets rose 49% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 16 billion as against Rs 10 billion during FY23, thereby witnessing a growth of 67%.

MAMAEARTH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,554	10,705	92.7
Current Liabilities	Rs m	2,893	4,139	43.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,766	16,302	66.9
Current assets	Rs m	6,406	11,283	76.1
Fixed Assets	Rs m	3,360	5,019	49.4
Total Assets	Rs m	9,766	16,302	66.9

MAMAEARTH Cash Flow Statement Analysis

• MAMAEARTH's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion, an improvement of 2,497% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs -257 million net cash flows seen during FY23.

MAMAEARTH 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	-516	2,353	-
Cash Flow from Investing Activities	Rs m	429	-4,698	-
Cash Flow from Financing Activities	Rs m	-141	3,369	-
Net Cash Flow	Rs m	-257	1,024	-

Current Valuations for MAMAEARTH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.4, an improvement from the EPS of Rs -11.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 453.3, stands at 133.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.7 times, while the price to sales ratio stands at 7.7 times.
• The company's price to cash flow (P/CF) ratio stood at 88.1 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	109.5	59.2
TTM Earnings per share	Rs	-11.1	3.4
Diluted earnings per share	Rs	-4.7	3.4
Price to Cash Flow	x	0.0	88.1
TTM P/E ratio	x	0.0	133.0
Price / Book Value ratio	x	0.0	11.6
Market Cap	Rs m	0	124,323
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MAMAEARTH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY24, from 2.2x 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 improved and stood at 17.3x during FY24, from -20.2x 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 10.3% during FY24, from -27.2% 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 14.6% during FY24, from -24.2% 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 7.3% during FY24, from -14.8% 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	2.2	2.7
Debtors’ Days	Days	32	30
Interest coverage	x	-20.2	17.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-14.8	7.3
Return on equity	%	-27.2	10.3
Return on capital employed	%	-24.2	14.6

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

MAMAEARTH Share Price Performance

Over the last one year, MAMAEARTH share price has moved up from Rs 0.0 to Rs 453.3, registering a gain of Rs 453.3 or around 0.0%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 22,507.8 (up 1.2%). Over the last one year it has moved up from 18,781.3 to 22,507.8, a gain of 3,727 points (up 19.8%).

Overall, the S&P BSE SENSEX is up 20.2% over the year.

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