MAJESTIC AUTO 2023-24 Annual Report Analysis

Wed, 21 Aug

MAJESTIC AUTO 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.

MAJESTIC AUTO Income Statement Analysis

• Operating income during the year rose 68.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 118.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 64.6% in FY24 as against 49.8% in FY23.
• Depreciation charges decreased by 0.7% and finance costs increased by 4.5% YoY, respectively.
• Other income grew by 199.9% YoY.
• Net profit for the year grew by 600.5% YoY.
• Net profit margins during the year grew from 9.5% in FY23 to 39.7% in FY24.

MAJESTIC AUTO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	496	834	68.3%
Other income	Rs m	115	343	199.9%
Total Revenues	Rs m	610	1,178	93.0%
Gross profit	Rs m	247	539	118.4%
Depreciation	Rs m	88	87	-0.7%
Interest	Rs m	137	143	4.5%
Profit before tax	Rs m	136	651	378.8%
Tax	Rs m	89	320	260.8%
Profit after tax	Rs m	47	331	600.5%
Gross profit margin	%	49.8	64.6
Effective tax rate	%	65.3	49.2
Net profit margin	%	9.5	39.7

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MAJESTIC AUTO Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 533 million as compared to Rs 354 million in FY23, thereby witnessing an increase of 50.7%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY23, a fall of 0.8%.
• Current assets rose 1,058% and stood at Rs 4 billion, while fixed assets fell 28% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 41%.

MAJESTIC AUTO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,168	6,151	47.6
Current Liabilities	Rs m	354	533	50.7
Long-term Debt	Rs m	1,261	1,250	-0.8
Total Liabilities	Rs m	6,042	8,547	41.5
Current assets	Rs m	389	4,498	1,057.7
Fixed Assets	Rs m	5,653	4,049	-28.4
Total Assets	Rs m	6,042	8,547	41.5

MAJESTIC AUTO Cash Flow Statement Analysis

• MAJESTIC AUTO's cash flow from operating activities (CFO) during FY24 stood at Rs 790 million, an improvement of 143.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 3 billion, an improvement of 5,213.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -362 million, an improvement of 5% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs -2 million net cash flows seen during FY23.

MAJESTIC AUTO 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	324	790	143.4%
Cash Flow from Investing Activities	Rs m	53	2,818	5,213.8%
Cash Flow from Financing Activities	Rs m	-379	-362	-
Net Cash Flow	Rs m	-2	3,246	-

Current Valuations for MAJESTIC AUTO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.8, an improvement from the EPS of Rs 4.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 406.0, stands at 10.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 5.1 times.
• The company's price to cash flow (P/CF) ratio stood at 6.9 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	47.7	80.2
TTM Earnings per share	Rs	4.5	31.8
Diluted earnings per share	Rs	4.5	31.8
Price to Cash Flow	x	10.4	6.9
TTM P/E ratio	x	29.9	10.3
Price / Book Value ratio	x	0.3	0.5
Market Cap	Rs m	1,451	2,872
Dividends per share (Unadj.)	Rs	7.5	15.0

Ratio Analysis for MAJESTIC AUTO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 8.4x during FY24, from 1.1x 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 5.5x during FY24, from 2.0x 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 5.4% during FY24, from 1.1% 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 10.7% during FY24, from 5.0% 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 5.5% during FY24, from 3.1% 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	1.1	8.4
Debtors’ Days	Days	14	25
Interest coverage	x	2.0	5.5
Debt to equity ratio	x	0.3	0.2
Return on assets	%	3.1	5.5
Return on equity	%	1.1	5.4
Return on capital employed	%	5.0	10.7

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

MAJESTIC AUTO Share Price Performance

Over the last one year, MAJESTIC AUTO share price has moved up from Rs 167.7 to Rs 406.0, registering a gain of Rs 238.4 or around 142.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,014.0 (up 0.3%). Over the last one year it has moved up from 43,641.7 to 73,014.0, a gain of 29,372 points (up 67.3%).

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

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