M.M.FORGINGS 2023-24 Annual Report Analysis

Tue, 18 Jun

M.M.FORGINGS 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.

M.M.FORGINGS Income Statement Analysis

• Operating income during the year rose 6.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.8% in FY24 as against 18.7% in FY23.
• Depreciation charges increased by 5.1% and finance costs increased by 43.1% YoY, respectively.
• Other income grew by 70.2% YoY.
• Net profit for the year grew by 5.5% YoY.
• Net profit margins during the year declined from 8.8% in FY23 to 8.6% in FY24.

M.M.FORGINGS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	14,619	15,631	6.9%
Other income	Rs m	120	205	70.2%
Total Revenues	Rs m	14,739	15,836	7.4%
Gross profit	Rs m	2,733	2,941	7.6%
Depreciation	Rs m	788	828	5.1%
Interest	Rs m	296	423	43.1%
Profit before tax	Rs m	1,770	1,895	7.1%
Tax	Rs m	490	545	11.1%
Profit after tax	Rs m	1,280	1,350	5.5%
Gross profit margin	%	18.7	18.8
Effective tax rate	%	27.7	28.7
Net profit margin	%	8.8	8.6

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M.M.FORGINGS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 19.7%.
• Long-term debt stood at Rs 4 billion as compared to Rs 3 billion during FY23, a growth of 16.7%.
• Current assets rose 17% and stood at Rs 9 billion, while fixed assets rose 20% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 20 billion as against Rs 17 billion during FY23, thereby witnessing a growth of 18%.

M.M.FORGINGS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,730	7,887	17.2
Current Liabilities	Rs m	6,205	7,426	19.7
Long-term Debt	Rs m	3,315	3,870	16.7
Total Liabilities	Rs m	16,608	19,680	18.5
Current assets	Rs m	7,403	8,661	17.0
Fixed Assets	Rs m	9,205	11,018	19.7
Total Assets	Rs m	16,608	19,680	18.5

M.M.FORGINGS Cash Flow Statement Analysis

• M.M.FORGINGS's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 24.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 945 million, an improvement of 473% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -64 million from the Rs -104 million net cash flows seen during FY23.

M.M.FORGINGS 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	1,603	1,312	-18.1%
Cash Flow from Investing Activities	Rs m	-1,872	-2,321	-
Cash Flow from Financing Activities	Rs m	165	945	473.1%
Net Cash Flow	Rs m	-104	-64	-

Current Valuations for M.M.FORGINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 55.9, an improvement from the EPS of Rs 53.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,267.0, stands at 22.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 10.5 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	605.6	647.5
TTM Earnings per share	Rs	53.0	55.9
Diluted earnings per share	Rs	53.0	55.9
Price to Cash Flow	x	9.7	10.5
TTM P/E ratio	x	15.8	22.9
Price / Book Value ratio	x	3.2	2.9
Market Cap	Rs m	21,587	22,922
Dividends per share (Unadj.)	Rs	6.0	8.0

Ratio Analysis for M.M.FORGINGS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x 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 5.5x during FY24, from 7.0x 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 17.1% during FY24, from 19.0% 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 19.7% during FY24, from 20.6% 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 9.0% during FY24, from 9.5% 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	1.2
Debtors’ Days	Days	491	643
Interest coverage	x	7.0	5.5
Debt to equity ratio	x	0.5	0.5
Return on assets	%	9.5	9.0
Return on equity	%	19.0	17.1
Return on capital employed	%	20.6	19.7

To see how M.M.FORGINGS has performed over the last 5 years, please visit here.

M.M.FORGINGS Share Price Performance

Over the last one year, M.M.FORGINGS share price has moved up from Rs 869.2 to Rs 1,267.0, registering a gain of Rs 397.8 or around 45.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 33,690.7 (up 0.3%). Over the last one year it has moved up from 20,592.4 to 33,690.7, a gain of 13,098 points (up 63.6%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for M.M.FORGINGS and quarterly results for M.M.FORGINGS)