MIRC ELEC 2022-23 Annual Report Analysis

Tue, 20 Jun

MIRC ELEC has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

MIRC ELEC Income Statement Analysis

• Operating income during the year fell 6.9% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 0.3% in FY23 as against 1.2% in FY22.
• Depreciation charges increased by 16.3% and finance costs decreased by 22.6% YoY, respectively.
• Other income declined by 73.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.7% in FY22 to 1.1% in FY23.

MIRC ELEC Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	11,922	11,102	-6.9%
Other income	Rs m	156	41	-73.6%
Total Revenues	Rs m	12,078	11,144	-7.7%
Gross profit	Rs m	-138	33	NA
Depreciation	Rs m	78	90	16.3%
Interest	Rs m	141	109	-22.6%
Profit before tax	Rs m	-201	-125	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-201	-125	NA
Gross profit margin	%	-1.2	0.3
Effective tax rate	%	0.0	0.0
Net profit margin	%	-1.7	-1.1

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MIRC ELEC Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 5 billion in FY22, thereby witnessing an decrease of -33.5%.
• Long-term debt down at Rs 117 million as compared to Rs 146 million during FY22, a fall of 20.3%.
• Current assets fell 32% and stood at Rs 4 billion, while fixed assets rose 7% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 7 billion during FY22, thereby witnessing a fall of 25%.

MIRC ELEC Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,032	1,908	-6.1
Current Liabilities	Rs m	4,783	3,181	-33.5
Long-term Debt	Rs m	146	117	-20.3
Total Liabilities	Rs m	7,052	5,301	-24.8
Current assets	Rs m	5,718	3,873	-32.3
Fixed Assets	Rs m	1,334	1,428	7.1
Total Assets	Rs m	7,052	5,301	-24.8

MIRC ELEC Cash Flow Statement Analysis

• MIRC ELEC's cash flow from operating activities (CFO) during FY23 stood at Rs -88 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 75 million, an improvement of 125.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -5 million, an improvement of 98% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 39 million from the Rs 56 million net cash flows seen during FY22.

MIRC ELEC Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	245	-88	-
Cash Flow from Investing Activities	Rs m	33	75	125.8%
Cash Flow from Financing Activities	Rs m	-303	-5	-
Net Cash Flow	Rs m	56	39	-31.5%

Current Valuations for MIRC ELEC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.5, 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 17.1, stands at -31.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at -113.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	51.6	48.1
TTM Earnings per share	Rs	-0.9	-0.5
Diluted earnings per share	Rs	-0.9	-0.5
Price to Cash Flow	x	-35.6	-113.7
TTM P/E ratio	x	-21.8	-31.7
Price / Book Value ratio	x	2.6	2.0
Market Cap	Rs m	5,319	3,903
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MIRC ELEC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.2x during FY22. 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 -0.1x during FY23, from -0.4x during FY22. 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 -6.5% during FY23, from -9.9% during FY23. 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 -0.8% during FY23, from -2.7% during FY22. 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 -0.3% during FY23, from -0.8% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.2	1.2
Debtors’ Days	Days	313	294
Interest coverage	x	-0.4	-0.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	-0.8	-0.3
Return on equity	%	-9.9	-6.5
Return on capital employed	%	-2.7	-0.8

To see how MIRC ELEC has performed over the last 5 years, please visit here.

MIRC ELEC Share Price Performance

Over the last one year, MIRC ELEC share price has moved up from Rs 11.9 to Rs 17.1, registering a gain of Rs 5.2 or around 43.6%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 42,912.5 (up 0.2%). Over the last one year it has moved up from 33,920.8 to 42,912.5, a gain of 8,992 points (up 26.5%).

Overall, the S&P BSE SENSEX is up 23.2% over the year.

(To know more, check out historical annual results for MIRC ELEC and quarterly results for MIRC ELEC)