MAN INDUSTRIES 2023-24 Annual Report Analysis

Tue, 29 Oct

MAN INDUSTRIES 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.

MAN INDUSTRIES Income Statement Analysis

• Operating income during the year rose 40.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 93.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.7% in FY24 as against 5.6% in FY23.
• Depreciation charges increased by 34.3% and finance costs increased by 114.0% YoY, respectively.
• Other income grew by 1.4% YoY.
• Net profit for the year grew by 56.8% YoY.
• Net profit margins during the year grew from 3.0% in FY23 to 3.3% in FY24.

MAN INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,313	31,422	40.8%
Other income	Rs m	514	521	1.4%
Total Revenues	Rs m	22,827	31,942	39.9%
Gross profit	Rs m	1,246	2,412	93.5%
Depreciation	Rs m	455	611	34.3%
Interest	Rs m	410	878	114.0%
Profit before tax	Rs m	895	1,443	61.3%
Tax	Rs m	224	392	74.7%
Profit after tax	Rs m	670	1,051	56.8%
Gross profit margin	%	5.6	7.7
Effective tax rate	%	25.1	27.1
Net profit margin	%	3.0	3.3

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MAN INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 46.4%.
• Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY23, a growth of 5.2%.
• Current assets rose 38% and stood at Rs 16 billion, while fixed assets rose 16% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 24 billion as against Rs 19 billion during FY23, thereby witnessing a growth of 30%.

MAN INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	11,323	13,934	23.1
Current Liabilities	Rs m	5,669	8,300	46.4
Long-term Debt	Rs m	1,296	1,363	5.2
Total Liabilities	Rs m	18,602	24,152	29.8
Current assets	Rs m	11,573	15,975	38.0
Fixed Assets	Rs m	7,030	8,177	16.3
Total Assets	Rs m	18,602	24,152	29.8

MAN INDUSTRIES Cash Flow Statement Analysis

• MAN INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 94.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -451 million net cash flows seen during FY23.

MAN INDUSTRIES 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	-1,203	2,575	-
Cash Flow from Investing Activities	Rs m	-1,355	-2,637	-
Cash Flow from Financing Activities	Rs m	2,107	1,579	-25.1%
Net Cash Flow	Rs m	-451	1,516	-

Current Valuations for MAN INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.2, an improvement from the EPS of Rs 11.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 306.4, stands at 17.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 10.7 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	371.3	485.4
TTM Earnings per share	Rs	11.2	16.2
Diluted earnings per share	Rs	10.4	16.2
Price to Cash Flow	x	5.4	10.7
TTM P/E ratio	x	8.4	17.6
Price / Book Value ratio	x	0.5	1.3
Market Cap	Rs m	5,297	17,742
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for MAN INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY24, from 2.0x 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 2.6x during FY24, from 3.2x 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 7.5% during FY24, from 5.9% 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 15.2% during FY24, from 10.3% 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 8.0% during FY24, from 5.8% 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	2.0	1.9
Debtors’ Days	Days	808	412
Interest coverage	x	3.2	2.6
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.8	8.0
Return on equity	%	5.9	7.5
Return on capital employed	%	10.3	15.2

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

MAN INDUSTRIES Share Price Performance

Over the last one year, MAN INDUSTRIES share price has moved up from Rs 216.3 to Rs 306.4, registering a gain of Rs 90.1 or around 41.7%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 30,805.9 (down 1.4%). Over the last one year it has moved up from 22,303.9 to 30,805.9, a gain of 8,502 points (up 38.1%).

Overall, the S&P BSE SENSEX is up 24.7% over the year.

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