MMTC 2023-24 Annual Report Analysis

Mon, 9 Sep

MMTC 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.

MMTC Income Statement Analysis

• Operating income during the year fell 99.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 99.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 128.1% in FY24 as against 51.1% in FY23.
• Depreciation charges decreased by 18.0% and finance costs decreased by 98.8% YoY, respectively.
• Other income grew by 113.7% YoY.
• Net profit for the year declined by 87.7% YoY.
• Net profit margins during the year grew from 44.3% in FY23 to 3598.9% in FY24.

MMTC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	35,282	53	-99.8%
Other income	Rs m	931	1,990	113.7%
Total Revenues	Rs m	36,213	2,043	-94.4%
Gross profit	Rs m	18,022	68	-99.6%
Depreciation	Rs m	53	43	-18.0%
Interest	Rs m	1,239	15	-98.8%
Profit before tax	Rs m	17,661	2,000	-88.7%
Tax	Rs m	2,038	78	-96.2%
Profit after tax	Rs m	15,623	1,922	-87.7%
Gross profit margin	%	51.1	128.1
Effective tax rate	%	11.5	3.9
Net profit margin	%	44.3	3,598.9

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

MMTC Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 20 billion as compared to Rs 22 billion in FY23, thereby witnessing an decrease of -8.5%.
• Current assets fell 4% and stood at Rs 32 billion, while fixed assets rose 56% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 35 billion as against Rs 35 billion during FY23, thereby witnessing a growth of 0%.

MMTC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	14,118	16,257	15.2
Current Liabilities	Rs m	22,173	20,286	-8.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	35,235	35,251	0.0
Current assets	Rs m	32,884	31,576	-4.0
Fixed Assets	Rs m	2,351	3,674	56.3
Total Assets	Rs m	35,235	35,251	0.0

MMTC Cash Flow Statement Analysis

• MMTC's cash flow from operating activities (CFO) during FY24 stood at Rs -4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -434 million, an improvement of 98% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 billion from the Rs 2 billion net cash flows seen during FY23.

MMTC 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	7,538	-3,529	-
Cash Flow from Investing Activities	Rs m	19,591	1,984	-89.9%
Cash Flow from Financing Activities	Rs m	-25,466	-434	-
Net Cash Flow	Rs m	1,663	-1,980	-

Current Valuations for MMTC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an decline from the EPS of Rs 10.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 93.2, stands at 144.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.6 times, while the price to sales ratio stands at 2,616.6 times.
• The company's price to cash flow (P/CF) ratio stood at 49.0 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	23.5	0.0
TTM Earnings per share	Rs	10.4	1.3
Diluted earnings per share	Rs	10.4	1.3
Price to Cash Flow	x	2.7	49.0
TTM P/E ratio	x	3.9	144.2
Price / Book Value ratio	x	4.3	5.9
Market Cap	Rs m	61,275	96,270
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MMTC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.5x 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 improved and stood at 135.2x during FY24, from 15.3x 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 11.8% during FY24, from 110.7% 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 12.4% during FY24, from 133.9% 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 5.5% during FY24, from 47.9% 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	1.5	1.6
Debtors’ Days	Days	4	2,684
Interest coverage	x	15.3	135.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	47.9	5.5
Return on equity	%	110.7	11.8
Return on capital employed	%	133.9	12.4

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

MMTC Share Price Performance

Over the last one year, MMTC share price has moved up from Rs 65.5 to Rs 93.2, registering a gain of Rs 27.6 or around 42.2%.

Overall, the S&P BSE SENSEX is up 23.4% over the year.

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