MEFCOM CAPIT 2021-22 Annual Report Analysis

Thu, 31 Mar

MEFCOM CAPIT has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

MEFCOM CAPIT Income Statement Analysis

• Operating income during the year rose 256.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 158.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.9% in FY22 as against 5.4% in FY21.
• Depreciation charges increased by 81.1% and finance costs increased by 1076.5% YoY, respectively.
• Other income declined by 15.8% YoY.
• Net profit for the year grew by 59.1% YoY.
• Net profit margins during the year declined from 6.7% in FY21 to 3.0% in FY22.

MEFCOM CAPIT Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	300	1,070	256.6%
Other income	Rs m	5	4	-15.8%
Total Revenues	Rs m	305	1,074	251.9%
Gross profit	Rs m	16	42	158.4%
Depreciation	Rs m	1	1	81.1%
Interest	Rs m	1	6	1,076.5%
Profit before tax	Rs m	20	39	92.7%
Tax	Rs m	0	7	0.0
Profit after tax	Rs m	20	32	59.1%
Gross profit margin	%	5.4	3.9
Effective tax rate	%	0.0	17.4
Net profit margin	%	6.7	3.0

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MEFCOM CAPIT Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 86 million as compared to Rs 38 million in FY21, thereby witnessing an increase of 122.2%.
• Long-term debt down at Rs 2 million as compared to Rs 3 million during FY21, a fall of 24.5%.
• Current assets rose 38% and stood at Rs 208 million, while fixed assets rose 126% and stood at Rs 74 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 282 million as against Rs 184 million during FY21, thereby witnessing a growth of 54%.

MEFCOM CAPIT Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	131	181	38.8
Current Liabilities	Rs m	38	86	122.2
Long-term Debt	Rs m	3	2	-24.5
Total Liabilities	Rs m	184	282	53.7
Current assets	Rs m	151	208	38.0
Fixed Assets	Rs m	33	74	125.8
Total Assets	Rs m	184	282	53.7

MEFCOM CAPIT Cash Flow Statement Analysis

• MEFCOM CAPIT's cash flow from operating activities (CFO) during FY22 stood at Rs -22 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -18 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 40 million, an improvement of 23% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 0 million from the Rs -6 million net cash flows seen during FY21.

MEFCOM CAPIT Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-42	-22	-
Cash Flow from Investing Activities	Rs m	3	-18	-
Cash Flow from Financing Activities	Rs m	32	40	23.5%
Net Cash Flow	Rs m	-6	0	-

Current Valuations for MEFCOM CAPIT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.5, an improvement from the EPS of Rs 2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4.8, stands at 6.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.0 times.
• The company's price to cash flow (P/CF) ratio stood at 8.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	32.8	117.1
TTM Earnings per share	Rs	2.2	3.5
Diluted earnings per share	Rs	0.4	0.7
Price to Cash Flow	x	2.9	8.8
TTM P/E ratio	x	3.0	6.9
Price / Book Value ratio	x	0.6	1.6
Market Cap	Rs m	76	291
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MEFCOM CAPIT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY22, from 3.9x during FY21. 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 7.4x during FY22, from 40.3x during FY21. 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 17.6% during FY22, from 15.3% during FY22. 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 24.3% during FY22, from 15.4% during FY21. 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 13.4% during FY22, from 11.2% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	3.9	2.4
Debtors’ Days	Days	40	11
Interest coverage	x	40.3	7.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.2	13.4
Return on equity	%	15.3	17.6
Return on capital employed	%	15.4	24.3

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

MEFCOM CAPIT Share Price Performance

Over the last one year, MEFCOM CAPIT share price has moved up from Rs 1.3 to Rs 4.8, registering a gain of Rs 3.5 or around 272.3%.

Overall, the S&P BSE SENSEX is up 16.8% over the year.

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