MENON PISTON 2023-24 Annual Report Analysis

Wed, 24 Jul

MENON PISTON 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 PISTON Income Statement Analysis

• Operating income during the year rose 1.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.8% in FY24 as against 18.6% in FY23.
• Depreciation charges decreased by 3.9% and finance costs decreased by 33.3% YoY, respectively.
• Other income declined by 50.9% YoY.
• Net profit for the year grew by 13.3% YoY.
• Net profit margins during the year grew from 9.3% in FY23 to 10.3% in FY24.

MENON PISTON Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,511	2,556	1.8%
Other income	Rs m	13	6	-50.9%
Total Revenues	Rs m	2,524	2,562	1.5%
Gross profit	Rs m	468	455	-2.8%
Depreciation	Rs m	99	96	-3.9%
Interest	Rs m	29	19	-33.3%
Profit before tax	Rs m	352	346	-1.7%
Tax	Rs m	118	81	-31.4%
Profit after tax	Rs m	233	265	13.3%
Gross profit margin	%	18.6	17.8
Effective tax rate	%	33.7	23.5
Net profit margin	%	9.3	10.3

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MENON PISTON Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 552 million as compared to Rs 489 million in FY23, thereby witnessing an increase of 12.9%.
• Long-term debt down at Rs 50 million as compared to Rs 50 million during FY23, a fall of 0.0%.
• Current assets rose 9% and stood at Rs 1 billion, while fixed assets rose 25% and stood at Rs 974 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 16%.

MENON PISTON Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,177	1,389	18.0
Current Liabilities	Rs m	489	552	12.9
Long-term Debt	Rs m	50	50	0.0
Total Liabilities	Rs m	1,742	2,021	16.0
Current assets	Rs m	963	1,047	8.7
Fixed Assets	Rs m	779	974	25.1
Total Assets	Rs m	1,742	2,021	16.0

MENON PISTON Cash Flow Statement Analysis

• MENON PISTON's cash flow from operating activities (CFO) during FY24 stood at Rs 222 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -222 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 16 million, an improvement of 106% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 16 million from the Rs -9 million net cash flows seen during FY23.

MENON PISTON 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	487	222	-54.3%
Cash Flow from Investing Activities	Rs m	-242	-222	-
Cash Flow from Financing Activities	Rs m	-253	16	-
Net Cash Flow	Rs m	-9	16	-

Current Valuations for MENON PISTON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.2, an improvement from the EPS of Rs 4.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 89.2, stands at 17.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.7 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	49.2	50.1
TTM Earnings per share	Rs	4.6	5.2
Diluted earnings per share	Rs	4.6	5.2
Price to Cash Flow	x	6.0	11.7
TTM P/E ratio	x	8.2	17.2
Price / Book Value ratio	x	2.1	3.0
Market Cap	Rs m	2,453	4,214
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for MENON PISTON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY24, from 2.0x 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 18.7x during FY24, from 13.1x 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 declined and down at 19.0% during FY24, from 19.8% 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 declined and down at 25.4% during FY24, from 31.1% 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 declined and down at 14.1% during FY24, from 15.1% 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	2.0	1.9
Debtors’ Days	Days	804	945
Interest coverage	x	13.1	18.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.1	14.1
Return on equity	%	19.8	19.0
Return on capital employed	%	31.1	25.4

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

MENON PISTON Share Price Performance

Over the last one year, MENON PISTON share price has moved up from Rs 56.9 to Rs 89.2, registering a gain of Rs 32.4 or around 56.9%.

Overall, the S&P BSE SENSEX is up 21.0% over the year.

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