MINDA CORPORATION 2023-24 Annual Report Analysis

Mon, 29 Jul

MINDA CORPORATION 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.

MINDA CORPORATION Income Statement Analysis

• Operating income during the year rose 8.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.1% in FY24 as against 10.8% in FY23.
• Depreciation charges increased by 20.1% and finance costs increased by 35.0% YoY, respectively.
• Other income declined by 0.6% YoY.
• Net profit for the year declined by 23.5% YoY.
• Net profit margins during the year declined from 6.8% in FY23 to 4.8% in FY24.

MINDA CORPORATION Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	43,001	46,511	8.2%
Other income	Rs m	158	157	-0.6%
Total Revenues	Rs m	43,159	46,668	8.1%
Gross profit	Rs m	4,631	5,156	11.3%
Depreciation	Rs m	1,381	1,658	20.1%
Interest	Rs m	423	571	35.0%
Profit before tax	Rs m	2,985	3,084	3.3%
Tax	Rs m	41	832	1,929.3%
Profit after tax	Rs m	2,944	2,252	-23.5%
Gross profit margin	%	10.8	11.1
Effective tax rate	%	1.4	27.0
Net profit margin	%	6.8	4.8

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

MINDA CORPORATION Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 11 billion as compared to Rs 13 billion in FY23, thereby witnessing an decrease of -13.1%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY23, a fall of 20.3%.
• Current assets rose 25% and stood at Rs 20 billion, while fixed assets fell 11% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 34 billion as against Rs 32 billion during FY23, thereby witnessing a growth of 7%.

MINDA CORPORATION Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,858	19,789	24.8
Current Liabilities	Rs m	12,689	11,024	-13.1
Long-term Debt	Rs m	1,716	1,367	-20.3
Total Liabilities	Rs m	32,018	34,268	7.0
Current assets	Rs m	15,834	19,795	25.0
Fixed Assets	Rs m	16,184	14,473	-10.6
Total Assets	Rs m	32,018	34,268	7.0

MINDA CORPORATION Cash Flow Statement Analysis

• MINDA CORPORATION's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 442 million from the Rs 371 million net cash flows seen during FY23.

MINDA CORPORATION 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	3,874	2,868	-26.0%
Cash Flow from Investing Activities	Rs m	-4,281	1,167	-
Cash Flow from Financing Activities	Rs m	743	-3,584	-
Net Cash Flow	Rs m	371	442	19.1%

Current Valuations for MINDA CORPORATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.4, an decline from the EPS of Rs 12.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 484.0, stands at 51.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.8 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 20.3 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	179.9	194.5
TTM Earnings per share	Rs	12.3	9.4
Diluted earnings per share	Rs	12.3	9.4
Price to Cash Flow	x	11.9	20.3
TTM P/E ratio	x	17.5	51.4
Price / Book Value ratio	x	3.4	4.0
Market Cap	Rs m	53,554	79,494
Dividends per share (Unadj.)	Rs	1.2	1.4

Ratio Analysis for MINDA CORPORATION

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x 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 6.4x during FY24, from 8.1x 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 declined and down at 11.4% during FY24, from 18.6% 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 17.3% during FY24, from 19.4% 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 8.2% during FY24, from 10.5% 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	1.8
Debtors’ Days	Days	54	63
Interest coverage	x	8.1	6.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	10.5	8.2
Return on equity	%	18.6	11.4
Return on capital employed	%	19.4	17.3

To see how MINDA CORPORATION has performed over the last 5 years, please visit here.

MINDA CORPORATION Share Price Performance

Over the last one year, MINDA CORPORATION share price has moved up from Rs 307.0 to Rs 484.0, registering a gain of Rs 177.0 or around 57.7%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, check out historical annual results for MINDA CORPORATION and quarterly results for MINDA CORPORATION)