MULTI COMMODITY 2023-24 Annual Report Analysis

Mon, 9 Sep

MULTI COMMODITY 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.

MULTI COMMODITY Income Statement Analysis

• Operating income during the year rose 33.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 56.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.1% in FY24 as against 28.1% in FY23.
• Depreciation charges increased by 66.4% and finance costs increased by 28.6% YoY, respectively.
• Other income grew by 11.5% YoY.
• Net profit for the year declined by 44.2% YoY.
• Net profit margins during the year declined from 29.0% in FY23 to 12.2% in FY24.

MULTI COMMODITY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,135	6,836	33.1%
Other income	Rs m	680	758	11.5%
Total Revenues	Rs m	5,815	7,594	30.6%
Gross profit	Rs m	1,444	624	-56.8%
Depreciation	Rs m	216	359	66.4%
Interest	Rs m	2	3	28.6%
Profit before tax	Rs m	1,906	1,020	-46.5%
Tax	Rs m	416	189	-54.6%
Profit after tax	Rs m	1,490	831	-44.2%
Gross profit margin	%	28.1	9.1
Effective tax rate	%	21.8	18.5
Net profit margin	%	29.0	12.2

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MULTI COMMODITY Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 12 billion as compared to Rs 9 billion in FY23, thereby witnessing an increase of 26.2%.
• Current assets fell 13% and stood at Rs 15 billion, while fixed assets rose 29% and stood at Rs 28 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 43 billion as against Rs 39 billion during FY23, thereby witnessing a growth of 11%.

MULTI COMMODITY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	20,691	21,590	4.3
Current Liabilities	Rs m	9,383	11,841	26.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	38,549	42,643	10.6
Current assets	Rs m	16,667	14,504	-13.0
Fixed Assets	Rs m	21,882	28,139	28.6
Total Assets	Rs m	38,549	42,643	10.6

MULTI COMMODITY Cash Flow Statement Analysis

• MULTI COMMODITY's cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion, an improvement of 268.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 5,151.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -982 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -16 million from the Rs 439 million net cash flows seen during FY23.

MULTI COMMODITY 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	1,414	5,209	268.3%
Cash Flow from Investing Activities	Rs m	-81	-4,243	-
Cash Flow from Financing Activities	Rs m	-895	-982	-
Net Cash Flow	Rs m	439	-16	-

Current Valuations for MULTI COMMODITY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.3, an decline from the EPS of Rs 29.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,275.4, stands at 154.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.5 times, while the price to sales ratio stands at 39.4 times.
• The company's price to cash flow (P/CF) ratio stood at 113.1 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	100.7	134.0
TTM Earnings per share	Rs	29.2	16.3
Diluted earnings per share	Rs	29.2	16.3
Price to Cash Flow	x	45.3	113.1
TTM P/E ratio	x	50.2	154.4
Price / Book Value ratio	x	3.5	6.2
Market Cap	Rs m	72,402	134,620
Dividends per share (Unadj.)	Rs	19.1	7.6

Ratio Analysis for MULTI COMMODITY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.8x 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 378.7x during FY24, from 908.5x 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 3.8% during FY24, from 7.2% 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 4.7% during FY24, from 9.2% 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 2.0% during FY24, from 3.9% 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	1.8	1.2
Debtors’ Days	Days	104	363
Interest coverage	x	908.5	378.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.9	2.0
Return on equity	%	7.2	3.8
Return on capital employed	%	9.2	4.7

To see how MULTI COMMODITY has performed over the last 5 years, please visit here.

MULTI COMMODITY Share Price Performance

Over the last one year, MULTI COMMODITY share price has moved up from Rs 1,806.9 to Rs 5,275.4, registering a gain of Rs 3,468.6 or around 192.0%.

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

(To know more, check out historical annual results for MULTI COMMODITY and quarterly results for MULTI COMMODITY)