MADHYA BHARAT AGRO 2023-24 Annual Report Analysis

Wed, 9 Oct

MADHYA BHARAT AGRO 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.

MADHYA BHARAT AGRO Income Statement Analysis

• Operating income during the year fell 16.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 54.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.8% in FY24 as against 21.4% in FY23.
• Depreciation charges increased by 29.7% and finance costs increased by 59.7% YoY, respectively.
• Other income grew by 118.7% YoY.
• Net profit for the year declined by 80.0% YoY.
• Net profit margins during the year declined from 12.6% in FY23 to 3.0% in FY24.

MADHYA BHARAT AGRO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,821	8,169	-16.8%
Other income	Rs m	52	113	118.7%
Total Revenues	Rs m	9,872	8,283	-16.1%
Gross profit	Rs m	2,098	962	-54.2%
Depreciation	Rs m	224	290	29.7%
Interest	Rs m	164	262	59.7%
Profit before tax	Rs m	1,762	523	-70.3%
Tax	Rs m	520	274	-47.2%
Profit after tax	Rs m	1,242	248	-80.0%
Gross profit margin	%	21.4	11.8
Effective tax rate	%	29.5	52.5
Net profit margin	%	12.6	3.0

Dear Reader: If You Invest in Midcap Stocks, this is for You

MADHYA BHARAT AGRO Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 10.9%.
• Long-term debt down at Rs 296 million as compared to Rs 414 million during FY23, a fall of 28.6%.
• Current assets fell 4% and stood at Rs 5 billion, while fixed assets rose 33% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 8%.

MADHYA BHARAT AGRO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,284	3,509	6.9
Current Liabilities	Rs m	3,166	3,512	10.9
Long-term Debt	Rs m	414	296	-28.6
Total Liabilities	Rs m	7,429	8,043	8.3
Current assets	Rs m	5,010	4,831	-3.6
Fixed Assets	Rs m	2,419	3,212	32.8
Total Assets	Rs m	7,429	8,043	8.3

MADHYA BHARAT AGRO Cash Flow Statement Analysis

• MADHYA BHARAT AGRO'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 -936 million, an improvement of 43.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -614 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -60 million from the Rs 60 million net cash flows seen during FY23.

MADHYA BHARAT AGRO 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	-700	1,490	-
Cash Flow from Investing Activities	Rs m	-653	-936	-
Cash Flow from Financing Activities	Rs m	1,414	-614	-
Net Cash Flow	Rs m	60	-60	-

Current Valuations for MADHYA BHARAT AGRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an decline from the EPS of Rs 28.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 205.3, stands at 61.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 73.7 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	224.2	93.2
TTM Earnings per share	Rs	28.4	2.8
Diluted earnings per share	Rs	14.2	2.8
Price to Cash Flow	x	0.0	73.7
TTM P/E ratio	x	0.0	61.8
Price / Book Value ratio	x	5.9	11.3
Market Cap	Rs m	19,361	39,680
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for MADHYA BHARAT AGRO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 1.6x 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 3.0x during FY24, from 11.7x 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 7.1% during FY24, from 37.8% 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 20.6% during FY24, from 52.1% 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 6.4% during FY24, from 18.9% 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	1.6	1.4
Debtors’ Days	Days	740	830
Interest coverage	x	11.7	3.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	18.9	6.4
Return on equity	%	37.8	7.1
Return on capital employed	%	52.1	20.6

To see how MADHYA BHARAT AGRO has performed over the last 5 years, please visit here.

MADHYA BHARAT AGRO Share Price Performance

Over the last one year, MADHYA BHARAT AGRO share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 0.4% over the year.

(To know more, check out historical annual results for MADHYA BHARAT AGRO and quarterly results for MADHYA BHARAT AGRO)