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MOSCHIP TECHNOLOGIES 2023-24 Annual Report Analysis

Fri, 8 Nov

MOSCHIP TECHNOLOGIES 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.

MOSCHIP TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 12.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 23.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.0% in FY24 as against 13.3% in FY23.
• Depreciation charges decreased by 33.6% and finance costs decreased by 27.8% YoY, respectively.
• Other income declined by 35.3% YoY.
• Net profit for the year grew by 0.7% YoY.
• Net profit margins during the year declined from 3.1% in FY23 to 2.8% in FY24.

MOSCHIP TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,984	2,228	12.3%
Other income	Rs m	50	32	-35.3%
Total Revenues	Rs m	2,033	2,261	11.2%
Gross profit	Rs m	263	201	-23.7%
Depreciation	Rs m	173	115	-33.6%
Interest	Rs m	77	56	-27.8%
Profit before tax	Rs m	62	62	-0.3%
Tax	Rs m	1	0	-100.0%
Profit after tax	Rs m	62	62	0.7%
Gross profit margin	%	13.3	9.0
Effective tax rate	%	1.0	0.0
Net profit margin	%	3.1	2.8

For Investors: Our Big Prediction

MOSCHIP TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 618 million as compared to Rs 557 million in FY23, thereby witnessing an increase of 11.1%.
• Long-term debt down at Rs 75 million as compared to Rs 141 million during FY23, a fall of 46.5%.
• Current assets rose 16% and stood at Rs 1 billion, while fixed assets rose 118% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 71%.

MOSCHIP TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	988	2,496	152.7
Current Liabilities	Rs m	557	618	11.1
Long-term Debt	Rs m	141	75	-46.5
Total Liabilities	Rs m	2,148	3,665	70.6
Current assets	Rs m	1,006	1,170	16.4
Fixed Assets	Rs m	1,142	2,494	118.3
Total Assets	Rs m	2,148	3,665	70.6

MOSCHIP TECHNOLOGIES Cash Flow Statement Analysis

• MOSCHIP TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 251 million, an improvement of 78.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -748 million, an improvement of 311.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 497 million, an improvement of 11,183% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 million from the Rs -44 million net cash flows seen during FY23.

MOSCHIP TECHNOLOGIES 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	140	251	78.5%
Cash Flow from Investing Activities	Rs m	-182	-748	-
Cash Flow from Financing Activities	Rs m	-4	497	-
Net Cash Flow	Rs m	-44	-1	-

Current Valuations for MOSCHIP TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an decline from the EPS of Rs 0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 239.0, stands at 270.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.2 times, while the price to sales ratio stands at 20.2 times.
• The company's price to cash flow (P/CF) ratio stood at 90.8 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	11.9	11.9
TTM Earnings per share	Rs	0.4	0.3
Diluted earnings per share	Rs	0.3	0.3
Price to Cash Flow	x	50.8	90.8
TTM P/E ratio	x	193.2	270.9
Price / Book Value ratio	x	10.6	6.4
Market Cap	Rs m	10,456	16,090
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MOSCHIP TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.8x 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 2.1x during FY24, from 1.8x 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 2.5% during FY24, from 6.3% 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 4.6% during FY24, from 12.4% 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 3.2% during FY24, from 6.5% 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	1.8	1.9
Debtors’ Days	Days	1,341	1,359
Interest coverage	x	1.8	2.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	6.5	3.2
Return on equity	%	6.3	2.5
Return on capital employed	%	12.4	4.6

To see how MOSCHIP TECHNOLOGIES has performed over the last 5 years, please visit here.

MOSCHIP TECHNOLOGIES Share Price Performance

Over the last one year, MOSCHIP TECHNOLOGIES share price has moved up from Rs 87.5 to Rs 239.0, registering a gain of Rs 151.5 or around 173.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 42,087.0 (up 0.8%). Over the last one year it has moved up from 31,561.2 to 42,087.0, a gain of 10,526 points (up 33.4%).

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

(To know more, check out historical annual results for MOSCHIP TECHNOLOGIES and quarterly results for MOSCHIP TECHNOLOGIES)