MADRAS FERTILIZERS 2023-24 Annual Report Analysis

Mon, 21 Oct

MADRAS FERTILIZERS 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.

MADRAS FERTILIZERS Income Statement Analysis

• Operating income during the year fell 35.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 83.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.4% in FY24 as against 9.6% in FY23.
• Depreciation charges increased by 7.3% and finance costs decreased by 14.6% YoY, respectively.
• Other income grew by 209.3% YoY.
• Net profit for the year declined by 97.0% YoY.
• Net profit margins during the year declined from 5.4% in FY23 to 0.2% in FY24.

MADRAS FERTILIZERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	34,471	22,284	-35.4%
Other income	Rs m	143	443	209.3%
Total Revenues	Rs m	34,614	22,727	-34.3%
Gross profit	Rs m	3,325	534	-83.9%
Depreciation	Rs m	96	103	7.3%
Interest	Rs m	885	756	-14.6%
Profit before tax	Rs m	2,487	119	-95.2%
Tax	Rs m	633	63	-90.1%
Profit after tax	Rs m	1,853	56	-97.0%
Gross profit margin	%	9.6	2.4
Effective tax rate	%	25.5	53.1
Net profit margin	%	5.4	0.2

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

MADRAS FERTILIZERS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 20 billion as compared to Rs 21 billion in FY23, thereby witnessing an decrease of -1.5%.
• Current assets fell 3% and stood at Rs 13 billion, while fixed assets rose 25% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 20 billion as against Rs 19 billion during FY23, thereby witnessing a growth of 5%.

MADRAS FERTILIZERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-2,871	-1,897	NA
Current Liabilities	Rs m	20,766	20,463	-1.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	19,148	20,125	5.1
Current assets	Rs m	13,367	12,913	-3.4
Fixed Assets	Rs m	5,781	7,212	24.8
Total Assets	Rs m	19,148	20,125	5.1

MADRAS FERTILIZERS Cash Flow Statement Analysis

• MADRAS FERTILIZERS's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -11 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 189 million, an improvement of 106% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 4 billion net cash flows seen during FY23.

MADRAS FERTILIZERS 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	6,874	1,642	-76.1%
Cash Flow from Investing Activities	Rs m	18	-11	-
Cash Flow from Financing Activities	Rs m	-3,201	189	-
Net Cash Flow	Rs m	3,691	1,820	-50.7%

Current Valuations for MADRAS FERTILIZERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an decline from the EPS of Rs 11.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 97.4, stands at 19.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -8.3 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 92.4 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	214.0	138.3
TTM Earnings per share	Rs	11.5	0.3
Diluted earnings per share	Rs	11.5	0.3
Price to Cash Flow	x	4.8	92.4
TTM P/E ratio	x	5.0	19.5
Price / Book Value ratio	x	-3.7	-7.7
Market Cap	Rs m	10,725	14,650
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MADRAS FERTILIZERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY24, from 0.6x 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 1.2x during FY24, from 3.8x 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 improved and stood at -2.9% during FY24, from -64.6% 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 improved and stood at -46.1% during FY24, from -117.5% 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 4.0% during FY24, from 14.3% 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	0.6	0.6
Debtors’ Days	Days	5	5
Interest coverage	x	3.8	1.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.3	4.0
Return on equity	%	-64.6	-2.9
Return on capital employed	%	-117.5	-46.1

To see how MADRAS FERTILIZERS has performed over the last 5 years, please visit here.

MADRAS FERTILIZERS Share Price Performance

Over the last one year, MADRAS FERTILIZERS share price has moved up from Rs 82.5 to Rs 97.4, registering a gain of Rs 14.9 or around 18.0%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for MADRAS FERTILIZERS and quarterly results for MADRAS FERTILIZERS)