MAC CHARLES 2023-24 Annual Report Analysis

Thu, 21 Nov

MAC CHARLES 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.

MAC CHARLES Income Statement Analysis

• Operating income during the year rose 1.7% 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 111.4% in FY24 as against 20.5% in FY23.
• Depreciation charges increased by 2.5% and finance costs increased by 123.1% YoY, respectively.
• Other income declined by 78.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 380.4% in FY23 to 581.4% in FY24.

MAC CHARLES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	112	114	1.7%
Other income	Rs m	855	182	-78.8%
Total Revenues	Rs m	967	295	-69.4%
Gross profit	Rs m	-23	-127	NA
Depreciation	Rs m	19	20	2.5%
Interest	Rs m	324	723	123.1%
Profit before tax	Rs m	489	-688	NA
Tax	Rs m	63	-26	NA
Profit after tax	Rs m	426	-662	NA
Gross profit margin	%	-20.5	-111.4
Effective tax rate	%	12.9	3.8
Net profit margin	%	380.4	-581.4

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MAC CHARLES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 169 million as compared to Rs 127 million in FY23, thereby witnessing an increase of 33.5%.
• Long-term debt stood at Rs 8 billion as compared to Rs 5 billion during FY23, a growth of 55.5%.
• Current assets rose 19% and stood at Rs 4 billion, while fixed assets rose 36% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 29%.

MAC CHARLES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,411	1,753	-27.3
Current Liabilities	Rs m	127	169	33.5
Long-term Debt	Rs m	5,320	8,274	55.5
Total Liabilities	Rs m	7,922	10,211	28.9
Current assets	Rs m	3,070	3,648	18.8
Fixed Assets	Rs m	4,824	6,537	35.5
Total Assets	Rs m	7,922	10,211	28.9

MAC CHARLES Cash Flow Statement Analysis

• MAC CHARLES's cash flow from operating activities (CFO) during FY24 stood at Rs -206 million, an improvement of 42.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -67 million from the Rs -865 million net cash flows seen during FY23.

MAC CHARLES 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	-145	-206	-
Cash Flow from Investing Activities	Rs m	-3,861	-1,617	-
Cash Flow from Financing Activities	Rs m	3,141	1,756	-44.1%
Net Cash Flow	Rs m	-865	-67	-

Current Valuations for MAC CHARLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -50.5, an decline from the EPS of Rs 32.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 565.2, stands at -8.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 65.0 times.
• The company's price to cash flow (P/CF) ratio stood at -9.0 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	8.5	8.7
TTM Earnings per share	Rs	32.5	-50.5
Diluted earnings per share	Rs	32.5	-50.5
Price to Cash Flow	x	10.5	-9.0
TTM P/E ratio	x	10.3	-8.2
Price / Book Value ratio	x	3.3	3.3
Market Cap	Rs m	8,057	5,791
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MAC CHARLES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 21.6x during FY24, from 24.2x 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 0.0x during FY24, from 2.5x 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 -37.8% during FY24, from 17.7% 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 0.4% during FY24, from 10.5% 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 0.6% during FY24, from 9.5% 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	24.2	21.6
Debtors’ Days	Days	53	53
Interest coverage	x	2.5	0.0
Debt to equity ratio	x	2.2	4.7
Return on assets	%	9.5	0.6
Return on equity	%	17.7	-37.8
Return on capital employed	%	10.5	0.4

To see how MAC CHARLES has performed over the last 5 years, please visit here.

MAC CHARLES Share Price Performance

Over the last one year, MAC CHARLES share price has moved up from Rs 412.0 to Rs 565.2, registering a gain of Rs 153.2 or around 37.2%.

Overall, the S&P BSE SENSEX is up 17.5% over the year.

(To know more, check out historical annual results for MAC CHARLES and quarterly results for MAC CHARLES)