MODISON 2023-24 Annual Report Analysis

Fri, 5 Jul

MODISON 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.

MODISON Income Statement Analysis

• Operating income during the year rose 20.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 71.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.3% in FY24 as against 6.6% in FY23.
• Depreciation charges decreased by 0.7% and finance costs increased by 61.8% YoY, respectively.
• Other income declined by 55.7% YoY.
• Net profit for the year grew by 91.0% YoY.
• Net profit margins during the year grew from 3.3% in FY23 to 5.3% in FY24.

MODISON Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,347	4,046	20.9%
Other income	Rs m	15	7	-55.7%
Total Revenues	Rs m	3,362	4,052	20.5%
Gross profit	Rs m	220	376	71.4%
Depreciation	Rs m	63	63	-0.7%
Interest	Rs m	18	29	61.8%
Profit before tax	Rs m	153	291	89.8%
Tax	Rs m	42	78	86.9%
Profit after tax	Rs m	112	213	91.0%
Gross profit margin	%	6.6	9.3
Effective tax rate	%	27.1	26.7
Net profit margin	%	3.3	5.3

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

MODISON Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 624 million as compared to Rs 284 million in FY23, thereby witnessing an increase of 119.3%.
• Current assets rose 25% and stood at Rs 2 billion, while fixed assets rose 18% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 22%.

MODISON Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,871	2,034	8.7
Current Liabilities	Rs m	284	624	119.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,215	2,712	22.4
Current assets	Rs m	1,364	1,708	25.2
Fixed Assets	Rs m	851	1,004	18.0
Total Assets	Rs m	2,215	2,712	22.4

MODISON Cash Flow Statement Analysis

• MODISON's cash flow from operating activities (CFO) during FY24 stood at Rs -36 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -157 million, an improvement of 24.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 194 million, an improvement of 241% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 million from the Rs -38 million net cash flows seen during FY23.

MODISON 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	225	-36	-
Cash Flow from Investing Activities	Rs m	-126	-157	-
Cash Flow from Financing Activities	Rs m	-138	194	-
Net Cash Flow	Rs m	-38	1	-

Current Valuations for MODISON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.6, an improvement from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 132.9, stands at 20.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 12.4 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	103.1	124.7
TTM Earnings per share	Rs	3.4	6.6
Diluted earnings per share	Rs	3.4	6.6
Price to Cash Flow	x	9.9	12.4
TTM P/E ratio	x	15.5	20.2
Price / Book Value ratio	x	1.1	1.7
Market Cap	Rs m	2,112	3,413
Dividends per share (Unadj.)	Rs	1.0	2.5

Ratio Analysis for MODISON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.7x during FY24, from 4.8x 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 improved and stood at 11.0x during FY24, from 9.5x 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 improved and stood at 10.5% during FY24, from 6.0% 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 15.8% 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 improved and stood at 8.9% during FY24, from 5.9% 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	4.8	2.7
Debtors’ Days	Days	575	597
Interest coverage	x	9.5	11.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.9	8.9
Return on equity	%	6.0	10.5
Return on capital employed	%	9.2	15.8

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

MODISON Share Price Performance

Over the last one year, MODISON share price has moved up from Rs 72.5 to Rs 132.9, registering a gain of Rs 60.3 or around 83.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,985.3 (up 0.3%). Over the last one year it has moved up from 40,720.4 to 73,985.3, a gain of 33,265 points (up 81.7%).

Overall, the S&P BSE SENSEX is up 22.8% over the year.

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