MAX FINANCIAL SERVICES 2023-24 Annual Report Analysis

Tue, 30 Jul

MAX FINANCIAL SERVICES 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.

MAX FINANCIAL SERVICES Income Statement Analysis

• Operating income during the year fell 99.9% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 47.4% in FY24 as against 2.3% in FY23.
• Depreciation charges decreased by 99.1% and finance costs decreased by 99.8% YoY, respectively.
• Other income declined by 99.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 1.4% in FY23 to 52.4% in FY24.

MAX FINANCIAL SERVICES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	313,840	214	-99.9%
Other income	Rs m	479	3	-99.4%
Total Revenues	Rs m	314,319	217	-99.9%
Gross profit	Rs m	7,144	-101	NA
Depreciation	Rs m	1,778	16	-99.1%
Interest	Rs m	572	1	-99.8%
Profit before tax	Rs m	5,272	-116	NA
Tax	Rs m	753	-3	NA
Profit after tax	Rs m	4,519	-112	NA
Gross profit margin	%	2.3	-47.4
Effective tax rate	%	14.3	2.8
Net profit margin	%	1.4	-52.4

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MAX FINANCIAL SERVICES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 56 million as compared to Rs 1,270 billion in FY23, thereby witnessing an decrease of -100.0%.
• Current assets fell 100% and stood at Rs 717 million, while fixed assets rose 135% and stood at Rs 71 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 72 billion as against Rs 1,318 billion during FY23, thereby witnessing a fall of 95%.

MAX FINANCIAL SERVICES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	35,146	67,521	92.1
Current Liabilities	Rs m	1,270,387	56	-100.0
Long-term Debt	Rs m	5,207	0	-100.0
Total Liabilities	Rs m	1,318,199	72,015	-94.5
Current assets	Rs m	1,287,893	717	-99.9
Fixed Assets	Rs m	30,306	71,298	135.3
Total Assets	Rs m	1,318,199	72,015	-94.5

MAX FINANCIAL SERVICES Cash Flow Statement Analysis

• MAX FINANCIAL SERVICES's cash flow from operating activities (CFO) during FY24 stood at Rs -77 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 86 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -11 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 million from the Rs 5 billion net cash flows seen during FY23.

MAX FINANCIAL SERVICES 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	99,223	-77	-
Cash Flow from Investing Activities	Rs m	-92,276	86	-
Cash Flow from Financing Activities	Rs m	-2,328	-11	-
Net Cash Flow	Rs m	4,619	-2	-

Current Valuations for MAX FINANCIAL SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.3, an decline from the EPS of Rs 13.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,095.0, stands at 96.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.6 times, while the price to sales ratio stands at 1,763.6 times.
• The company's price to cash flow (P/CF) ratio stood at -2,984.4 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	913.4	0.6
TTM Earnings per share	Rs	13.2	-0.3
Diluted earnings per share	Rs	13.1	-0.3
Price to Cash Flow	x	34.8	-2,984.4
TTM P/E ratio	x	48.5	96.3
Price / Book Value ratio	x	7.3	4.3
Market Cap	Rs m	255,835	287,903
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MAX FINANCIAL SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 12.9x during FY24, from 1.0x 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 -108.0x during FY24, from 10.2x 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 declined and down at -0.2% during FY24, from 12.9% 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 declined and down at -0.2% during FY24, from 14.5% 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 -0.2% during FY24, from 0.4% 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	1.0	12.9
Debtors’ Days	Days	79	2,090
Interest coverage	x	10.2	-108.0
Debt to equity ratio	x	0.1	0.0
Return on assets	%	0.4	-0.2
Return on equity	%	12.9	-0.2
Return on capital employed	%	14.5	-0.2

To see how MAX FINANCIAL SERVICES has performed over the last 5 years, please visit here.

MAX FINANCIAL SERVICES Share Price Performance

Over the last one year, MAX FINANCIAL SERVICES share price has moved up from Rs 814.3 to Rs 1,095.0, registering a gain of Rs 280.8 or around 34.5%.

Overall, the S&P BSE SENSEX is up 22.0% over the year.

(To know more, check out historical annual results for MAX FINANCIAL SERVICES and quarterly results for MAX FINANCIAL SERVICES)