MMP INDUSTRIES 2023-24 Annual Report Analysis

Tue, 29 Oct

MMP INDUSTRIES 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.

MMP INDUSTRIES Income Statement Analysis

• Operating income during the year rose 7.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.2% in FY24 as against 7.1% in FY23.
• Depreciation charges increased by 16.2% and finance costs increased by 53.3% YoY, respectively.
• Other income grew by 127.7% YoY.
• Net profit for the year grew by 48.4% YoY.
• Net profit margins during the year grew from 4.0% in FY23 to 5.5% in FY24.

MMP INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,383	5,785	7.5%
Other income	Rs m	6	13	127.7%
Total Revenues	Rs m	5,389	5,799	7.6%
Gross profit	Rs m	381	534	40.3%
Depreciation	Rs m	69	80	16.2%
Interest	Rs m	45	68	53.3%
Profit before tax	Rs m	274	400	46.1%
Tax	Rs m	60	83	38.1%
Profit after tax	Rs m	213	316	48.4%
Gross profit margin	%	7.1	9.2
Effective tax rate	%	22.1	20.8
Net profit margin	%	4.0	5.5

Dear Reader: If You Invest in Midcap Stocks, this is for You

MMP INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 815 million in FY23, thereby witnessing an increase of 51.3%.
• Long-term debt stood at Rs 134 million as compared to Rs 67 million during FY23, a growth of 100.9%.
• Current assets rose 30% and stood at Rs 2 billion, while fixed assets rose 17% and stood at Rs 3 billion 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 growth of 22%.

MMP INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,571	2,890	12.4
Current Liabilities	Rs m	815	1,232	51.3
Long-term Debt	Rs m	67	134	100.9
Total Liabilities	Rs m	3,613	4,408	22.0
Current assets	Rs m	1,382	1,801	30.3
Fixed Assets	Rs m	2,231	2,607	16.9
Total Assets	Rs m	3,613	4,408	22.0

MMP INDUSTRIES Cash Flow Statement Analysis

• MMP INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 428 million, an improvement of 30.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -417 million, an improvement of 75.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -27 million, an improvement of 63% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -17 million from the Rs 18 million net cash flows seen during FY23.

MMP INDUSTRIES 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	328	428	30.2%
Cash Flow from Investing Activities	Rs m	-238	-417	-
Cash Flow from Financing Activities	Rs m	-72	-27	-
Net Cash Flow	Rs m	18	-17	-

Current Valuations for MMP INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.5, an improvement from the EPS of Rs 8.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 335.8, stands at 30.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 13.1 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	211.9	227.8
TTM Earnings per share	Rs	8.4	12.5
Diluted earnings per share	Rs	8.4	12.5
Price to Cash Flow	x	0.0	13.1
TTM P/E ratio	x	0.0	30.7
Price / Book Value ratio	x	1.6	1.8
Market Cap	Rs m	4,074	5,195
Dividends per share (Unadj.)	Rs	1.0	1.5

Ratio Analysis for MMP INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 1.7x 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 6.8x during FY24, from 7.1x 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 10.9% during FY24, from 8.3% 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 15.5% during FY24, from 12.1% 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 8.7% during FY24, from 7.1% 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	1.7	1.5
Debtors’ Days	Days	302	360
Interest coverage	x	7.1	6.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.1	8.7
Return on equity	%	8.3	10.9
Return on capital employed	%	12.1	15.5

To see how MMP INDUSTRIES has performed over the last 5 years, please visit here.

MMP INDUSTRIES Share Price Performance

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

Meanwhile, the S&P BSE METAL Index is trading at Rs 30,809.2 (down 1.4%). Over the last one year it has moved up from 22,303.9 to 30,809.2, a gain of 8,505 points (up 38.1%).

Overall, the NIFTY 50 is down 0.2% over the year.

(To know more, check out historical annual results for MMP INDUSTRIES and quarterly results for MMP INDUSTRIES)