MENON BEARINGS 2023-24 Annual Report Analysis

Mon, 19 Aug

MENON BEARINGS 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.

MENON BEARINGS Income Statement Analysis

• Operating income during the year fell 3.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 18.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.4% in FY24 as against 24.1% in FY23.
• Depreciation charges increased by 10.1% and finance costs increased by 12.2% YoY, respectively.
• Other income grew by 259.9% YoY.
• Net profit for the year declined by 25.3% YoY.
• Net profit margins during the year declined from 14.9% in FY23 to 11.5% in FY24.

MENON BEARINGS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,194	2,126	-3.1%
Other income	Rs m	5	18	259.9%
Total Revenues	Rs m	2,199	2,144	-2.5%
Gross profit	Rs m	528	433	-18.0%
Depreciation	Rs m	79	87	10.1%
Interest	Rs m	29	33	12.2%
Profit before tax	Rs m	425	331	-22.0%
Tax	Rs m	99	88	-11.3%
Profit after tax	Rs m	326	244	-25.3%
Gross profit margin	%	24.1	20.4
Effective tax rate	%	23.3	26.5
Net profit margin	%	14.9	11.5

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MENON BEARINGS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 386 million as compared to Rs 308 million in FY23, thereby witnessing an increase of 25.5%.
• Long-term debt stood at Rs 187 million as compared to Rs 58 million during FY23, a growth of 223.5%.
• Current assets rose 24% and stood at Rs 1 billion, while fixed assets rose 14% and stood at Rs 998 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 19%.

MENON BEARINGS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,333	1,449	8.7
Current Liabilities	Rs m	308	386	25.5
Long-term Debt	Rs m	58	187	223.5
Total Liabilities	Rs m	1,735	2,070	19.3
Current assets	Rs m	863	1,072	24.2
Fixed Assets	Rs m	872	998	14.4
Total Assets	Rs m	1,735	2,070	19.3

MENON BEARINGS Cash Flow Statement Analysis

• MENON BEARINGS's cash flow from operating activities (CFO) during FY24 stood at Rs 283 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -195 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 40 million, an improvement of 117% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 128 million from the Rs 44 million net cash flows seen during FY23.

MENON BEARINGS 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	501	283	-43.4%
Cash Flow from Investing Activities	Rs m	-230	-195	-
Cash Flow from Financing Activities	Rs m	-228	40	-
Net Cash Flow	Rs m	44	128	193.0%

Current Valuations for MENON BEARINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.3, an decline from the EPS of Rs 5.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 125.9, stands at 30.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 22.4 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	39.1	37.9
TTM Earnings per share	Rs	5.8	4.3
Diluted earnings per share	Rs	5.8	4.3
Price to Cash Flow	x	13.3	22.4
TTM P/E ratio	x	16.7	30.4
Price / Book Value ratio	x	4.0	5.1
Market Cap	Rs m	5,378	7,397
Dividends per share (Unadj.)	Rs	2.0	2.3

Ratio Analysis for MENON BEARINGS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.8x during FY24, from 2.8x 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 11.1x during FY24, from 15.6x 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 16.8% during FY24, from 24.5% 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 22.2% during FY24, from 32.6% 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 13.3% during FY24, from 20.5% 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	2.8	2.8
Debtors’ Days	Days	827	943
Interest coverage	x	15.6	11.1
Debt to equity ratio	x	0.0	0.1
Return on assets	%	20.5	13.3
Return on equity	%	24.5	16.8
Return on capital employed	%	32.6	22.2

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

MENON BEARINGS Share Price Performance

Over the last one year, MENON BEARINGS share price has moved down from Rs 131.3 to Rs 125.9, registering a loss of Rs 5.4 or around 4.1%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

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