MANGALAM CEMENT 2023-24 Annual Report Analysis

Mon, 8 Jul

MANGALAM CEMENT 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.

MANGALAM CEMENT Income Statement Analysis

• Operating income during the year fell 4.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 57.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.7% in FY24 as against 7.1% in FY23.
• Depreciation charges increased by 6.8% and finance costs increased by 2.1% YoY, respectively.
• Other income grew by 10.1% YoY.
• Net profit for the year grew by 248.8% YoY.
• Net profit margins during the year grew from 1.0% in FY23 to 3.5% in FY24.

MANGALAM CEMENT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	18,016	17,255	-4.2%
Other income	Rs m	349	385	10.1%
Total Revenues	Rs m	18,365	17,640	-4.0%
Gross profit	Rs m	1,284	2,024	57.6%
Depreciation	Rs m	695	742	6.8%
Interest	Rs m	662	676	2.1%
Profit before tax	Rs m	277	991	257.5%
Tax	Rs m	106	394	271.7%
Profit after tax	Rs m	171	597	248.8%
Gross profit margin	%	7.1	11.7
Effective tax rate	%	38.2	39.7
Net profit margin	%	1.0	3.5

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

MANGALAM CEMENT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 5.7%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY23, a fall of 15.8%.
• Current assets rose 4% and stood at Rs 7 billion, while fixed assets rose 4% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 21 billion as against Rs 20 billion during FY23, thereby witnessing a growth of 4%.

MANGALAM CEMENT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,562	8,116	7.3
Current Liabilities	Rs m	7,790	8,236	5.7
Long-term Debt	Rs m	2,909	2,449	-15.8
Total Liabilities	Rs m	19,902	20,679	3.9
Current assets	Rs m	6,692	6,965	4.1
Fixed Assets	Rs m	13,210	13,714	3.8
Total Assets	Rs m	19,902	20,679	3.9

MANGALAM CEMENT Cash Flow Statement Analysis

• MANGALAM CEMENT's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 31.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 76.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -859 million, an improvement of 4% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -153 million from the Rs -144 million net cash flows seen during FY23.

MANGALAM CEMENT 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	1,386	1,825	31.6%
Cash Flow from Investing Activities	Rs m	-636	-1,118	-
Cash Flow from Financing Activities	Rs m	-894	-859	-
Net Cash Flow	Rs m	-144	-153	-

Current Valuations for MANGALAM CEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.7, an improvement from the EPS of Rs 6.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 907.6, stands at 41.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 11.0 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	655.1	627.4
TTM Earnings per share	Rs	6.2	21.7
Diluted earnings per share	Rs	6.2	21.7
Price to Cash Flow	x	8.4	11.0
TTM P/E ratio	x	42.6	41.8
Price / Book Value ratio	x	1.2	1.8
Market Cap	Rs m	8,851	14,732
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for MANGALAM CEMENT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY24, from 0.9x 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 2.5x during FY24, from 1.4x 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 improved and stood at 7.4% during FY24, from 2.3% 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 9.0% 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 6.2% 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	0.9	0.8
Debtors’ Days	Days	75	73
Interest coverage	x	1.4	2.5
Debt to equity ratio	x	0.4	0.3
Return on assets	%	4.2	6.2
Return on equity	%	2.3	7.4
Return on capital employed	%	9.0	15.8

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

MANGALAM CEMENT Share Price Performance

Over the last one year, MANGALAM CEMENT share price has moved up from Rs 307.6 to Rs 907.6, registering a gain of Rs 600.0 or around 195.0%.

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

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