MANGALAM GLOBAL ENTERPRISE 2023-24 Annual Report Analysis

Wed, 24 Jul

MANGALAM GLOBAL ENTERPRISE 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 GLOBAL ENTERPRISE Income Statement Analysis

• Operating income during the year rose 29.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.1% in FY24 as against 2.0% in FY23.
• Depreciation charges decreased by 4.7% and finance costs increased by 76.8% YoY, respectively.
• Other income grew by 164.8% YoY.
• Net profit for the year grew by 59.2% YoY.
• Net profit margins during the year grew from 0.9% in FY23 to 1.1% in FY24.

MANGALAM GLOBAL ENTERPRISE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	14,233	18,382	29.2%
Other income	Rs m	52	139	164.8%
Total Revenues	Rs m	14,286	18,521	29.6%
Gross profit	Rs m	286	377	31.6%
Depreciation	Rs m	31	30	-4.7%
Interest	Rs m	147	260	76.8%
Profit before tax	Rs m	161	226	40.8%
Tax	Rs m	34	24	-28.1%
Profit after tax	Rs m	127	202	59.2%
Gross profit margin	%	2.0	2.1
Effective tax rate	%	21.0	10.7
Net profit margin	%	0.9	1.1

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

MANGALAM GLOBAL ENTERPRISE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -16.9%.
• Long-term debt stood at Rs 367 million as compared to Rs 198 million during FY23, a growth of 85.2%.
• Current assets fell 0% and stood at Rs 3 billion, while fixed assets fell 33% and stood at Rs 540 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 4 billion during FY23, thereby witnessing a fall of 4%.

MANGALAM GLOBAL ENTERPRISE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,130	1,388	22.9
Current Liabilities	Rs m	2,902	2,412	-16.9
Long-term Debt	Rs m	198	367	85.2
Total Liabilities	Rs m	4,219	4,050	-4.0
Current assets	Rs m	3,414	3,411	-0.1
Fixed Assets	Rs m	806	540	-32.9
Total Assets	Rs m	4,219	4,050	-4.0

MANGALAM GLOBAL ENTERPRISE Cash Flow Statement Analysis

• MANGALAM GLOBAL ENTERPRISE's cash flow from operating activities (CFO) during FY24 stood at Rs 399 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 17 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -425 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -10 million from the Rs 8 million net cash flows seen during FY23.

MANGALAM GLOBAL ENTERPRISE 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	-501	399	-
Cash Flow from Investing Activities	Rs m	-411	17	-
Cash Flow from Financing Activities	Rs m	920	-425	-
Net Cash Flow	Rs m	8	-10	-

Current Valuations for MANGALAM GLOBAL ENTERPRISE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.4, an improvement from the EPS of Rs 0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 27.5, stands at 22.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 12.7 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	102.7	127.5
TTM Earnings per share	Rs	0.9	1.4
Diluted earnings per share	Rs	0.8	1.2
Price to Cash Flow	x	0.0	12.7
TTM P/E ratio	x	0.0	22.4
Price / Book Value ratio	x	5.0	2.1
Market Cap	Rs m	5,625	2,956
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MANGALAM GLOBAL ENTERPRISE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.2x 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 deteriorated and stood at 1.9x during FY24, from 2.1x 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 14.6% during FY24, from 11.2% 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 27.7% during FY24, from 23.2% 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 11.4% during FY24, from 6.5% 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	1.2	1.4
Debtors’ Days	Days	538	346
Interest coverage	x	2.1	1.9
Debt to equity ratio	x	0.2	0.3
Return on assets	%	6.5	11.4
Return on equity	%	11.2	14.6
Return on capital employed	%	23.2	27.7

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

MANGALAM GLOBAL ENTERPRISE Share Price Performance

Over the last one year, MANGALAM GLOBAL ENTERPRISE share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is down 0.6% over the year.

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