MODIS NAVNIRMAN LTD. 2023-24 Annual Report Analysis

Thu, 22 Aug

MODIS NAVNIRMAN LTD. 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.

MODIS NAVNIRMAN LTD. Income Statement Analysis

• Operating income during the year rose 34.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.6% in FY24 as against 19.8% in FY23.
• Depreciation charges increased by 700.0% and finance costs decreased by 97.7% YoY, respectively.
• Other income declined by 86.4% YoY.
• Net profit for the year grew by 16.1% YoY.
• Net profit margins during the year declined from 13.4% in FY23 to 11.6% in FY24.

MODIS NAVNIRMAN LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	431	578	34.2%
Other income	Rs m	9	1	-86.4%
Total Revenues	Rs m	440	579	31.7%
Gross profit	Rs m	85	90	5.4%
Depreciation	Rs m	0	0	700.0%
Interest	Rs m	17	0	-97.7%
Profit before tax	Rs m	77	91	17.8%
Tax	Rs m	19	24	23.0%
Profit after tax	Rs m	58	67	16.1%
Gross profit margin	%	19.8	15.6
Effective tax rate	%	25.1	26.2
Net profit margin	%	13.4	11.6

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

MODIS NAVNIRMAN LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 214 million as compared to Rs 197 million in FY23, thereby witnessing an increase of 8.8%.
• Long-term debt down at Rs 58 million as compared to Rs 75 million during FY23, a fall of 22.5%.
• Current assets rose 65% and stood at Rs 961 million, while fixed assets rose 1,428% and stood at Rs 166 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 594 million during FY23, thereby witnessing a growth of 90%.

MODIS NAVNIRMAN LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	323	854	164.6
Current Liabilities	Rs m	197	214	8.8
Long-term Debt	Rs m	75	58	-22.5
Total Liabilities	Rs m	594	1,127	89.7
Current assets	Rs m	583	961	64.7
Fixed Assets	Rs m	11	166	1,428.2
Total Assets	Rs m	594	1,127	89.7

MODIS NAVNIRMAN LTD. Cash Flow Statement Analysis

• MODIS NAVNIRMAN LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs -255 million, an improvement of 250.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -143 million, an improvement of 3,363.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 448 million, an improvement of 404% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 50 million from the Rs 12 million net cash flows seen during FY23.

MODIS NAVNIRMAN LTD. 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	-73	-255	-
Cash Flow from Investing Activities	Rs m	-4	-143	-
Cash Flow from Financing Activities	Rs m	89	448	404.1%
Net Cash Flow	Rs m	12	50	313.9%

Current Valuations for MODIS NAVNIRMAN LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.5, an improvement from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 274.0, stands at 80.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 9.1 times.
• The company's price to cash flow (P/CF) ratio stood at 63.8 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	25.5	30.3
TTM Earnings per share	Rs	3.4	3.5
Diluted earnings per share	Rs	2.9	3.4
Price to Cash Flow	x	51.3	63.8
TTM P/E ratio	x	51.3	80.2
Price / Book Value ratio	x	6.1	5.0
Market Cap	Rs m	1,978	4,272
Dividends per share (Unadj.)	Rs	1.0	0.0

Ratio Analysis for MODIS NAVNIRMAN LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.5x during FY24, from 3.0x 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 233.4x during FY24, from 5.5x 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 7.8% during FY24, from 17.9% 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 10.0% during FY24, from 23.7% 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 declined and down at 6.0% during FY24, from 12.6% 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	3.0	4.5
Debtors’ Days	Days	85	150
Interest coverage	x	5.5	233.4
Debt to equity ratio	x	0.2	0.1
Return on assets	%	12.6	6.0
Return on equity	%	17.9	7.8
Return on capital employed	%	23.7	10.0

To see how MODIS NAVNIRMAN LTD. has performed over the last 5 years, please visit here.

MODIS NAVNIRMAN LTD. Share Price Performance

Over the last one year, MODIS NAVNIRMAN LTD. share price has moved up from Rs 180.1 to Rs 274.0, registering a gain of Rs 94.0 or around 52.2%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,161.6 (up 0.6%). Over the last one year it has moved up from 4,295.0 to 8,161.6, a gain of 3,867 points (up 90.0%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for MODIS NAVNIRMAN LTD. and quarterly results for MODIS NAVNIRMAN LTD.)