MINDTECK INDIA 2023-24 Annual Report Analysis

Wed, 24 Jul

MINDTECK INDIA 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.

MINDTECK INDIA Income Statement Analysis

• Operating income during the year rose 14.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.3% in FY24 as against 8.0% in FY23.
• Depreciation charges decreased by 1.3% and finance costs decreased by 11.9% YoY, respectively.
• Other income grew by 56.9% YoY.
• Net profit for the year grew by 31.5% YoY.
• Net profit margins during the year grew from 6.2% in FY23 to 7.1% in FY24.

MINDTECK INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,367	3,855	14.5%
Other income	Rs m	44	70	56.9%
Total Revenues	Rs m	3,412	3,925	15.0%
Gross profit	Rs m	271	319	17.9%
Depreciation	Rs m	45	45	-1.3%
Interest	Rs m	10	9	-11.9%
Profit before tax	Rs m	260	335	29.1%
Tax	Rs m	52	62	19.4%
Profit after tax	Rs m	208	273	31.5%
Gross profit margin	%	8.0	8.3
Effective tax rate	%	20.1	18.6
Net profit margin	%	6.2	7.1

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MINDTECK INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 498 million as compared to Rs 464 million in FY23, thereby witnessing an increase of 7.5%.
• Current assets rose 19% and stood at Rs 2 billion, while fixed assets fell 9% and stood at Rs 390 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 14%.

MINDTECK INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,893	2,192	15.8
Current Liabilities	Rs m	464	498	7.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,384	2,707	13.6
Current assets	Rs m	1,956	2,318	18.5
Fixed Assets	Rs m	428	390	-8.9
Total Assets	Rs m	2,384	2,707	13.6

MINDTECK INDIA Cash Flow Statement Analysis

• MINDTECK INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 225 million, an improvement of 76.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -127 million, an improvement of 22.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -19 million, an improvement of 87% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 85 million from the Rs -89 million net cash flows seen during FY23.

MINDTECK INDIA 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	127	225	76.7%
Cash Flow from Investing Activities	Rs m	-104	-127	-
Cash Flow from Financing Activities	Rs m	-147	-19	-
Net Cash Flow	Rs m	-89	85	-

Current Valuations for MINDTECK INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.9, 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 388.8, stands at 36.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 15.0 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	135.5	153.5
TTM Earnings per share	Rs	8.4	10.9
Diluted earnings per share	Rs	8.2	10.7
Price to Cash Flow	x	10.4	15.0
TTM P/E ratio	x	12.7	36.2
Price / Book Value ratio	x	1.9	2.2
Market Cap	Rs m	3,607	4,783
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MINDTECK INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.7x during FY24, from 4.2x 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 38.7x during FY24, from 26.7x 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 improved and stood at 12.5% during FY24, from 11.0% 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 15.7% during FY24, from 14.3% 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 10.4% during FY24, from 9.1% 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	4.2	4.7
Debtors’ Days	Days	931	884
Interest coverage	x	26.7	38.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.1	10.4
Return on equity	%	11.0	12.5
Return on capital employed	%	14.3	15.7

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

MINDTECK INDIA Share Price Performance

Over the last one year, MINDTECK INDIA share price has moved up from Rs 144.1 to Rs 388.8, registering a gain of Rs 244.7 or around 169.8%.

Overall, the S&P BSE SENSEX is up 20.9% over the year.

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