MANORAMA INDUSTRIES 2023-24 Annual Report Analysis

Wed, 14 Aug

MANORAMA 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.

MANORAMA INDUSTRIES Income Statement Analysis

• Operating income during the year rose 30.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.1% in FY24 as against 16.1% in FY23.
• Depreciation charges increased by 25.4% and finance costs increased by 129.7% YoY, respectively.
• Other income grew by 114.8% YoY.
• Net profit for the year grew by 34.7% YoY.
• Net profit margins during the year grew from 8.5% in FY23 to 8.8% in FY24.

MANORAMA INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,508	4,571	30.3%
Other income	Rs m	61	132	114.8%
Total Revenues	Rs m	3,569	4,702	31.7%
Gross profit	Rs m	565	735	30.2%
Depreciation	Rs m	109	136	25.4%
Interest	Rs m	87	199	129.7%
Profit before tax	Rs m	431	532	23.5%
Tax	Rs m	133	131	-1.7%
Profit after tax	Rs m	298	401	34.7%
Gross profit margin	%	16.1	16.1
Effective tax rate	%	30.9	24.6
Net profit margin	%	8.5	8.8

Don't Miss: Key Information for Long-term Investors

MANORAMA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 960 million in FY23, thereby witnessing an increase of 257.2%.
• Long-term debt stood at Rs 507 million as compared to Rs 240 million during FY23, a growth of 111.5%.
• Current assets rose 106% and stood at Rs 6 billion, while fixed assets rose 17% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 74%.

MANORAMA INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,981	3,358	12.6
Current Liabilities	Rs m	960	3,429	257.2
Long-term Debt	Rs m	240	507	111.5
Total Liabilities	Rs m	4,244	7,367	73.6
Current assets	Rs m	2,703	5,560	105.7
Fixed Assets	Rs m	1,541	1,807	17.2
Total Assets	Rs m	4,244	7,367	73.6

MANORAMA INDUSTRIES Cash Flow Statement Analysis

• MANORAMA INDUSTRIES'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 -621 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 3,106% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -15 million from the Rs -473 million net cash flows seen during FY23.

MANORAMA 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	593	-1,535	-
Cash Flow from Investing Activities	Rs m	-995	-621	-
Cash Flow from Financing Activities	Rs m	-71	2,141	-
Net Cash Flow	Rs m	-473	-15	-

Current Valuations for MANORAMA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.7, an decline from the EPS of Rs 25.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 755.8, stands at 107.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.4 times, while the price to sales ratio stands at 9.9 times.
• The company's price to cash flow (P/CF) ratio stood at 37.8 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	294.3	76.7
TTM Earnings per share	Rs	25.0	6.7
Diluted earnings per share	Rs	5.0	6.7
Price to Cash Flow	x	30.2	37.8
TTM P/E ratio	x	41.2	107.0
Price / Book Value ratio	x	4.5	6.0
Market Cap	Rs m	13,489	20,285
Dividends per share (Unadj.)	Rs	0.4	0.4

Ratio Analysis for MANORAMA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 2.8x 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 3.7x during FY24, from 6.0x 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 11.9% during FY24, from 10.0% 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 18.9% during FY24, from 16.1% 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 8.1% during FY24, from 9.1% 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	2.8	1.6
Debtors’ Days	Days	287	334
Interest coverage	x	6.0	3.7
Debt to equity ratio	x	0.1	0.2
Return on assets	%	9.1	8.1
Return on equity	%	10.0	11.9
Return on capital employed	%	16.1	18.9

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

MANORAMA INDUSTRIES Share Price Performance

Over the last one year, MANORAMA INDUSTRIES share price has moved up from Rs 351.8 to Rs 755.8, registering a gain of Rs 404.0 or around 114.9%.

Overall, the S&P BSE SENSEX is up 20.9% over the year.

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