MEGATHERM INDUCTION LTD. 2023-24 Annual Report Analysis

Thu, 8 Aug

MEGATHERM INDUCTION LTD. 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.

MEGATHERM INDUCTION LTD. Income Statement Analysis

• Operating income during the year rose 15.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.8% in FY24 as against 10.4% in FY23.
• Depreciation charges increased by 39.4% and finance costs increased by 5.8% YoY, respectively.
• Other income grew by 101.4% YoY.
• Net profit for the year grew by 48.0% YoY.
• Net profit margins during the year grew from 5.3% in FY23 to 6.8% in FY24.

MEGATHERM INDUCTION LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,659	3,063	15.2%
Other income	Rs m	6	11	101.4%
Total Revenues	Rs m	2,664	3,074	15.4%
Gross profit	Rs m	275	360	30.8%
Depreciation	Rs m	24	34	39.4%
Interest	Rs m	58	62	5.8%
Profit before tax	Rs m	198	276	39.1%
Tax	Rs m	58	69	17.9%
Profit after tax	Rs m	140	207	48.0%
Gross profit margin	%	10.4	11.8
Effective tax rate	%	29.4	24.9
Net profit margin	%	5.3	6.8

Don't Miss: Key Information for Long-term Investors

MEGATHERM INDUCTION LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 13.9%.
• Long-term debt down at Rs 60 million as compared to Rs 137 million during FY23, a fall of 56.2%.
• Current assets rose 56% and stood at Rs 2 billion, while fixed assets rose 12% and stood at Rs 764 million 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 41%.

MEGATHERM INDUCTION LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	506	1,203	137.7
Current Liabilities	Rs m	1,274	1,451	13.9
Long-term Debt	Rs m	137	60	-56.2
Total Liabilities	Rs m	1,962	2,763	40.8
Current assets	Rs m	1,282	1,999	56.0
Fixed Assets	Rs m	681	764	12.2
Total Assets	Rs m	1,962	2,763	40.8

MEGATHERM INDUCTION LTD. Cash Flow Statement Analysis

• MEGATHERM INDUCTION LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 229 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -367 million, an improvement of 85.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 361 million, an improvement of 1,161% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 224 million from the Rs 26 million net cash flows seen during FY23.

MEGATHERM INDUCTION LTD. 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	258	229	-11.0%
Cash Flow from Investing Activities	Rs m	-198	-367	-
Cash Flow from Financing Activities	Rs m	-34	361	-
Net Cash Flow	Rs m	26	224	761.8%

Current Valuations for MEGATHERM INDUCTION LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.0, an decline from the EPS of Rs 15.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 409.5, stands at 37.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.4 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 21.0 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	288.1	162.6
TTM Earnings per share	Rs	15.2	11.0
Diluted earnings per share	Rs	7.4	11.0
Price to Cash Flow	x	0.0	21.0
TTM P/E ratio	x	0.0	37.2
Price / Book Value ratio	x	0.0	4.2
Market Cap	Rs m	0	5,073
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MEGATHERM INDUCTION LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.0x 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 5.5x during FY24, from 4.4x 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 17.2% during FY24, from 27.7% 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 26.7% during FY24, from 39.9% 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 9.7% during FY24, from 10.1% 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	1.0	1.4
Debtors’ Days	Days	319	381
Interest coverage	x	4.4	5.5
Debt to equity ratio	x	0.3	0.0
Return on assets	%	10.1	9.7
Return on equity	%	27.7	17.2
Return on capital employed	%	39.9	26.7

To see how MEGATHERM INDUCTION LTD. has performed over the last 5 years, please visit here.

MEGATHERM INDUCTION LTD. Share Price Performance

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(To know more, check out historical annual results for MEGATHERM INDUCTION LTD. and quarterly results for MEGATHERM INDUCTION LTD.)