MEGHMANI ORGANICS 2023-24 Annual Report Analysis

Tue, 18 Jun

MEGHMANI ORGANICS 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.

MEGHMANI ORGANICS Income Statement Analysis

• Operating income during the year fell 38.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.3% in FY24 as against 14.1% in FY23.
• Depreciation charges increased by 19.7% and finance costs decreased by 24.3% YoY, respectively.
• Other income declined by 57.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 9.3% in FY23 to 6.8% in FY24.

MEGHMANI ORGANICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	25,526	15,663	-38.6%
Other income	Rs m	960	411	-57.2%
Total Revenues	Rs m	26,487	16,074	-39.3%
Gross profit	Rs m	3,598	-203	NA
Depreciation	Rs m	771	922	19.7%
Interest	Rs m	657	498	-24.3%
Profit before tax	Rs m	3,131	-1,212	NA
Tax	Rs m	754	-152	NA
Profit after tax	Rs m	2,377	-1,060	NA
Gross profit margin	%	14.1	-1.3
Effective tax rate	%	24.1	12.5
Net profit margin	%	9.3	-6.8

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MEGHMANI ORGANICS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 10 billion in FY23, thereby witnessing an increase of 2.5%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY23, a fall of 4.6%.
• Current assets fell 17% and stood at Rs 12 billion, while fixed assets rose 5% and stood at Rs 18 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 30 billion as against Rs 32 billion during FY23, thereby witnessing a fall of 5%.

MEGHMANI ORGANICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	16,692	15,277	-8.5
Current Liabilities	Rs m	10,300	10,563	2.5
Long-term Debt	Rs m	4,016	3,831	-4.6
Total Liabilities	Rs m	31,984	30,401	-4.9
Current assets	Rs m	14,657	12,131	-17.2
Fixed Assets	Rs m	17,328	18,270	5.4
Total Assets	Rs m	31,984	30,401	-4.9

MEGHMANI ORGANICS Cash Flow Statement Analysis

• MEGHMANI ORGANICS's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 22.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -855 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -142 million from the Rs 206 million net cash flows seen during FY23.

MEGHMANI ORGANICS 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	2,045	2,497	22.1%
Cash Flow from Investing Activities	Rs m	-4,176	-1,784	-
Cash Flow from Financing Activities	Rs m	2,337	-855	-
Net Cash Flow	Rs m	206	-142	-

Current Valuations for MEGHMANI ORGANICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.2, an decline from the EPS of Rs 9.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 88.0, stands at -21.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at -162.3 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	100.4	61.6
TTM Earnings per share	Rs	9.3	-4.2
Diluted earnings per share	Rs	9.3	-4.2
Price to Cash Flow	x	6.3	-162.3
TTM P/E ratio	x	8.3	-21.1
Price / Book Value ratio	x	1.7	1.5
Market Cap	Rs m	28,961	22,403
Dividends per share (Unadj.)	Rs	1.4	0.0

Ratio Analysis for MEGHMANI ORGANICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.4x 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 deteriorated and stood at -1.4x during FY24, from 5.8x 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 -6.9% during FY24, from 14.2% 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 declined and down at -3.7% during FY24, from 18.3% 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 declined and down at -1.9% during FY24, from 9.5% 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	1.4	1.1
Debtors’ Days	Days	748	1,009
Interest coverage	x	5.8	-1.4
Debt to equity ratio	x	0.2	0.3
Return on assets	%	9.5	-1.9
Return on equity	%	14.2	-6.9
Return on capital employed	%	18.3	-3.7

To see how MEGHMANI ORGANICS has performed over the last 5 years, please visit here.

MEGHMANI ORGANICS Share Price Performance

Over the last one year, MEGHMANI ORGANICS share price has moved up from Rs 87.3 to Rs 88.0, registering a gain of Rs 0.8 or around 0.9%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for MEGHMANI ORGANICS and quarterly results for MEGHMANI ORGANICS)