MANGALORE CHEMICALS 2023-24 Annual Report Analysis

Mon, 14 Oct

MANGALORE CHEMICALS 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.

MANGALORE CHEMICALS Income Statement Analysis

• Operating income during the year rose 4.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.9% in FY24 as against 8.5% in FY23.
• Depreciation charges increased by 19.9% and finance costs increased by 0.5% YoY, respectively.
• Other income grew by 34.6% YoY.
• Net profit for the year grew by 15.0% YoY.
• Net profit margins during the year grew from 3.7% in FY23 to 4.1% in FY24.

MANGALORE CHEMICALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	36,415	37,954	4.2%
Other income	Rs m	306	413	34.6%
Total Revenues	Rs m	36,722	38,367	4.5%
Gross profit	Rs m	3,094	3,759	21.5%
Depreciation	Rs m	597	716	19.9%
Interest	Rs m	1,044	1,049	0.5%
Profit before tax	Rs m	1,760	2,407	36.7%
Tax	Rs m	414	859	107.5%
Profit after tax	Rs m	1,347	1,548	15.0%
Gross profit margin	%	8.5	9.9
Effective tax rate	%	23.5	35.7
Net profit margin	%	3.7	4.1

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MANGALORE CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 11 billion as compared to Rs 14 billion in FY23, thereby witnessing an decrease of -24.9%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY23, a fall of 16.2%.
• Current assets fell 16% and stood at Rs 13 billion, while fixed assets rose 2% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 24 billion as against Rs 27 billion during FY23, thereby witnessing a fall of 9%.

MANGALORE CHEMICALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,032	9,397	17.0
Current Liabilities	Rs m	14,071	10,566	-24.9
Long-term Debt	Rs m	3,567	2,988	-16.2
Total Liabilities	Rs m	26,592	24,304	-8.6
Current assets	Rs m	15,544	13,049	-16.1
Fixed Assets	Rs m	11,047	11,256	1.9
Total Assets	Rs m	26,592	24,304	-8.6

MANGALORE CHEMICALS Cash Flow Statement Analysis

• MANGALORE CHEMICALS's cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion, an improvement of 158.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -824 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -504 million from the Rs -2 billion net cash flows seen during FY23.

MANGALORE CHEMICALS 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	1,921	4,963	158.3%
Cash Flow from Investing Activities	Rs m	-2,430	-824	-
Cash Flow from Financing Activities	Rs m	-1,014	-4,642	-
Net Cash Flow	Rs m	-1,523	-504	-

Current Valuations for MANGALORE CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.1, an improvement from the EPS of Rs 11.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 141.1, stands at 11.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 6.4 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	307.2	320.2
TTM Earnings per share	Rs	11.4	13.1
Diluted earnings per share	Rs	11.4	13.1
Price to Cash Flow	x	6.0	6.4
TTM P/E ratio	x	8.6	11.2
Price / Book Value ratio	x	1.5	1.6
Market Cap	Rs m	12,115	14,571
Dividends per share (Unadj.)	Rs	1.2	1.5

Ratio Analysis for MANGALORE CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 1.1x 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 3.3x during FY24, from 2.7x 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 16.5% during FY24, from 16.8% 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 27.9% during FY24, from 24.2% 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 10.7% during FY24, from 9.0% 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	1.1	1.2
Debtors’ Days	Days	759	581
Interest coverage	x	2.7	3.3
Debt to equity ratio	x	0.4	0.3
Return on assets	%	9.0	10.7
Return on equity	%	16.8	16.5
Return on capital employed	%	24.2	27.9

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

MANGALORE CHEMICALS Share Price Performance

Over the last one year, MANGALORE CHEMICALS share price has moved up from Rs 106.3 to Rs 141.1, registering a gain of Rs 34.8 or around 32.8%.

Overall, the S&P BSE SENSEX is up 24.1% over the year.

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