MODERN INSULATORS 2023-24 Annual Report Analysis

Tue, 19 Nov

MODERN INSULATORS 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.

MODERN INSULATORS Income Statement Analysis

• Operating income during the year rose 2.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 44.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.9% in FY24 as against 5.7% in FY23.
• Depreciation charges decreased by 0.7% and finance costs decreased by 18.0% YoY, respectively.
• Other income declined by 18.5% YoY.
• Net profit for the year grew by 29.0% YoY.
• Net profit margins during the year grew from 6.5% in FY23 to 8.1% in FY24.

MODERN INSULATORS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,310	4,433	2.9%
Other income	Rs m	141	115	-18.5%
Total Revenues	Rs m	4,451	4,548	2.2%
Gross profit	Rs m	244	352	44.1%
Depreciation	Rs m	87	86	-0.7%
Interest	Rs m	42	34	-18.0%
Profit before tax	Rs m	257	347	34.9%
Tax	Rs m	-23	-14	NA
Profit after tax	Rs m	279	360	29.0%
Gross profit margin	%	5.7	7.9
Effective tax rate	%	-8.8	-4.0
Net profit margin	%	6.5	8.1

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MODERN INSULATORS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 825 million as compared to Rs 672 million in FY23, thereby witnessing an increase of 22.8%.
• Long-term debt down at Rs 2 million as compared to Rs 2 million during FY23, a fall of 30.4%.
• Current assets rose 19% and stood at Rs 3 billion, while fixed assets fell 0% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 10%.

MODERN INSULATORS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,887	4,248	9.3
Current Liabilities	Rs m	672	825	22.8
Long-term Debt	Rs m	2	2	-30.4
Total Liabilities	Rs m	5,037	5,538	9.9
Current assets	Rs m	2,608	3,112	19.3
Fixed Assets	Rs m	2,429	2,426	-0.1
Total Assets	Rs m	5,037	5,538	9.9

MODERN INSULATORS Cash Flow Statement Analysis

• MODERN INSULATORS's cash flow from operating activities (CFO) during FY24 stood at Rs 117 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -160 million, an improvement of 327.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 77 million, an improvement of 135% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 32 million from the Rs -27 million net cash flows seen during FY23.

MODERN INSULATORS 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	230	117	-49.0%
Cash Flow from Investing Activities	Rs m	-38	-160	-
Cash Flow from Financing Activities	Rs m	-220	77	-
Net Cash Flow	Rs m	-27	32	-

Current Valuations for MODERN INSULATORS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.6, an improvement from the EPS of Rs 5.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 140.4, stands at 14.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 8.6 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	91.4	94.0
TTM Earnings per share	Rs	5.9	7.6
Diluted earnings per share	Rs	5.9	7.6
Price to Cash Flow	x	5.4	8.6
TTM P/E ratio	x	7.0	14.2
Price / Book Value ratio	x	0.6	0.9
Market Cap	Rs m	2,217	3,858
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MODERN INSULATORS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.8x during FY24, from 3.9x 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 11.2x during FY24, from 7.2x 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 8.5% during FY24, from 7.2% 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 9.0% during FY24, from 7.7% 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 7.1% during FY24, from 6.4% 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	3.9	3.8
Debtors’ Days	Days	888	930
Interest coverage	x	7.2	11.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.4	7.1
Return on equity	%	7.2	8.5
Return on capital employed	%	7.7	9.0

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

MODERN INSULATORS Share Price Performance

Over the last one year, MODERN INSULATORS share price has moved up from Rs 90.1 to Rs 140.4, registering a gain of Rs 50.3 or around 55.8%.

Overall, the S&P BSE SENSEX is up 19.4% over the year.

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