MAFATLAL INDUSTRIES 2023-24 Annual Report Analysis

Wed, 17 Jul

MAFATLAL INDUSTRIES 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.

MAFATLAL INDUSTRIES Income Statement Analysis

• Operating income during the year rose 51.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 66.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.1% in FY24 as against 1.9% in FY23.
• Depreciation charges decreased by 2.8% and finance costs decreased by 13.4% YoY, respectively.
• Other income grew by 40.5% YoY.
• Net profit for the year grew by 166.4% YoY.
• Net profit margins during the year grew from 2.7% in FY23 to 4.8% in FY24.

MAFATLAL INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,717	20,786	51.5%
Other income	Rs m	466	655	40.5%
Total Revenues	Rs m	14,183	21,441	51.2%
Gross profit	Rs m	264	439	66.3%
Depreciation	Rs m	154	150	-2.8%
Interest	Rs m	177	153	-13.4%
Profit before tax	Rs m	399	790	98.3%
Tax	Rs m	28	-197	NA
Profit after tax	Rs m	371	988	166.4%
Gross profit margin	%	1.9	2.1
Effective tax rate	%	7.0	-24.9
Net profit margin	%	2.7	4.8

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

MAFATLAL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 9 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 83.7%.
• Long-term debt stood at Rs 272 million as compared to Rs 262 million during FY23, a growth of 4.0%.
• Current assets rose 98% and stood at Rs 10 billion, while fixed assets rose 13% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 19 billion as against Rs 13 billion during FY23, thereby witnessing a growth of 48%.

MAFATLAL INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,119	8,130	32.9
Current Liabilities	Rs m	5,128	9,421	83.7
Long-term Debt	Rs m	262	272	4.0
Total Liabilities	Rs m	12,983	19,198	47.9
Current assets	Rs m	5,283	10,486	98.5
Fixed Assets	Rs m	7,700	8,712	13.1
Total Assets	Rs m	12,983	19,198	47.9

MAFATLAL INDUSTRIES Cash Flow Statement Analysis

• MAFATLAL INDUSTRIES'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 -23 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -231 million, an improvement of 31% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs -48 million net cash flows seen during FY23.

MAFATLAL INDUSTRIES 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	-71	1,588	-
Cash Flow from Investing Activities	Rs m	359	-23	-
Cash Flow from Financing Activities	Rs m	-336	-231	-
Net Cash Flow	Rs m	-48	1,334	-

Current Valuations for MAFATLAL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.8, an improvement from the EPS of Rs 5.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 196.6, stands at 14.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 6.7 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	194.3	290.7
TTM Earnings per share	Rs	5.3	13.8
Diluted earnings per share	Rs	5.2	13.7
Price to Cash Flow	x	5.6	6.7
TTM P/E ratio	x	8.0	14.3
Price / Book Value ratio	x	0.7	0.9
Market Cap	Rs m	4,104	7,654
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MAFATLAL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x 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 6.2x during FY24, from 3.2x 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 12.1% during FY24, from 6.1% 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 11.2% during FY24, from 9.0% 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 5.9% during FY24, from 4.2% 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	1.1
Debtors’ Days	Days	8	11
Interest coverage	x	3.2	6.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.2	5.9
Return on equity	%	6.1	12.1
Return on capital employed	%	9.0	11.2

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

MAFATLAL INDUSTRIES Share Price Performance

Over the last one year, MAFATLAL INDUSTRIES share price has moved up from Rs 71.6 to Rs 196.6, registering a gain of Rs 125.0 or around 174.6%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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