MAX INDIA 2023-24 Annual Report Analysis

Wed, 18 Sep

MAX INDIA 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 INDIA Income Statement Analysis

• Operating income during the year fell 12.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 30.4% in FY24 as against 0.4% in FY23.
• Depreciation charges increased by 20.2% and finance costs decreased by 26.4% YoY, respectively.
• Other income grew by 53.8% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 5.2% in FY23 to 32.1% in FY24.

MAX INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,010	1,756	-12.6%
Other income	Rs m	124	191	53.8%
Total Revenues	Rs m	2,135	1,947	-8.8%
Gross profit	Rs m	-8	-534	NA
Depreciation	Rs m	84	102	20.2%
Interest	Rs m	62	46	-26.4%
Profit before tax	Rs m	-30	-490	NA
Tax	Rs m	74	73	-0.4%
Profit after tax	Rs m	-104	-564	NA
Gross profit margin	%	-0.4	-30.4
Effective tax rate	%	-245.1	-15.0
Net profit margin	%	-5.2	-32.1

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MAX INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -14.0%.
• Long-term debt down at Rs 8 million as compared to Rs 223 million during FY23, a fall of 96.3%.
• Current assets fell 25% and stood at Rs 3 billion, while fixed assets rose 16% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 8 billion during FY23, thereby witnessing a fall of 9%.

MAX INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,385	4,834	-10.2
Current Liabilities	Rs m	1,614	1,388	-14.0
Long-term Debt	Rs m	223	8	-96.3
Total Liabilities	Rs m	7,534	6,843	-9.2
Current assets	Rs m	4,591	3,432	-25.2
Fixed Assets	Rs m	2,943	3,411	15.9
Total Assets	Rs m	7,534	6,843	-9.2

MAX INDIA Cash Flow Statement Analysis

• MAX INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 2 billion, an improvement of 27.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -290 million, an improvement of 76% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 273 million from the Rs 749 million net cash flows seen during FY23.

MAX INDIA 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	694	-1,023	-
Cash Flow from Investing Activities	Rs m	1,241	1,586	27.9%
Cash Flow from Financing Activities	Rs m	-1,185	-290	-
Net Cash Flow	Rs m	749	273	-63.6%

Current Valuations for MAX INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -13.1, an decline from the EPS of Rs -2.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 243.0, stands at -14.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at -14.7 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	46.7	40.7
TTM Earnings per share	Rs	-2.4	-13.1
Diluted earnings per share	Rs	-2.4	-13.1
Price to Cash Flow	x	-182.2	-14.7
TTM P/E ratio	x	-38.7	-14.5
Price / Book Value ratio	x	0.7	1.4
Market Cap	Rs m	3,853	6,777
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MAX INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.5x 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 -9.7x during FY24, from 0.5x 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 -11.7% during FY24, from -1.9% 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 -9.2% during FY24, from 0.6% 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 -7.6% during FY24, from -0.6% 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	2.5
Debtors’ Days	Days	52	103
Interest coverage	x	0.5	-9.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-0.6	-7.6
Return on equity	%	-1.9	-11.7
Return on capital employed	%	0.6	-9.2

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

MAX INDIA Share Price Performance

Over the last one year, MAX INDIA share price has moved up from Rs 149.1 to Rs 243.0, registering a gain of Rs 93.9 or around 63.0%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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