MARICO 2023-24 Annual Report Analysis

Tue, 16 Jul

MARICO 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.

MARICO Income Statement Analysis

• Operating income during the year fell 1.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.6% in FY24 as against 18.5% in FY23.
• Depreciation charges increased by 1.9% and finance costs increased by 30.4% YoY, respectively.
• Other income grew by 21.5% YoY.
• Net profit for the year grew by 13.6% YoY.
• Net profit margins during the year grew from 13.5% in FY23 to 15.6% in FY24.

MARICO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	97,640	96,530	-1.1%
Other income	Rs m	1,440	1,750	21.5%
Total Revenues	Rs m	99,080	98,280	-0.8%
Gross profit	Rs m	18,100	19,930	10.1%
Depreciation	Rs m	1,550	1,580	1.9%
Interest	Rs m	560	730	30.4%
Profit before tax	Rs m	17,430	19,370	11.1%
Tax	Rs m	4,210	4,350	3.3%
Profit after tax	Rs m	13,220	15,020	13.6%
Gross profit margin	%	18.5	20.6
Effective tax rate	%	24.2	22.5
Net profit margin	%	13.5	15.6

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MARICO Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 24 billion as compared to Rs 24 billion in FY23, thereby witnessing an increase of 0.6%.
• Current assets rose 5% and stood at Rs 40 billion, while fixed assets rose 12% and stood at Rs 34 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 74 billion as against Rs 68 billion during FY23, thereby witnessing a growth of 8%.

MARICO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	37,560	37,630	0.2
Current Liabilities	Rs m	24,290	24,440	0.6
Long-term Debt	Rs m	20	0	-100.0
Total Liabilities	Rs m	68,000	73,530	8.1
Current assets	Rs m	38,130	39,980	4.9
Fixed Assets	Rs m	29,800	33,500	12.4
Total Assets	Rs m	68,000	73,530	8.1

MARICO Cash Flow Statement Analysis

• MARICO's cash flow from operating activities (CFO) during FY24 stood at Rs 14 billion, an improvement of 1.2% 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 -15 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 210 million from the Rs -690 million net cash flows seen during FY23.

MARICO 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	14,190	14,360	1.2%
Cash Flow from Investing Activities	Rs m	-8,650	1,760	-
Cash Flow from Financing Activities	Rs m	-5,600	-15,420	-
Net Cash Flow	Rs m	-690	210	-

Current Valuations for MARICO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.6, an improvement from the EPS of Rs 10.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 662.8, stands at 57.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 22.8 times, while the price to sales ratio stands at 8.9 times.
• The company's price to cash flow (P/CF) ratio stood at 41.2 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	75.5	74.6
TTM Earnings per share	Rs	10.2	11.6
Diluted earnings per share	Rs	10.2	11.6
Price to Cash Flow	x	42.0	41.2
TTM P/E ratio	x	47.0	57.1
Price / Book Value ratio	x	17.6	18.2
Market Cap	Rs m	662,092	684,548
Dividends per share (Unadj.)	Rs	4.5	9.5

Ratio Analysis for MARICO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.6x 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 27.5x during FY24, from 32.1x 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 39.9% during FY24, from 35.2% 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 53.4% during FY24, from 47.9% 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 21.4% during FY24, from 20.3% 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	1.6	1.6
Debtors’ Days	Days	4	4
Interest coverage	x	32.1	27.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	20.3	21.4
Return on equity	%	35.2	39.9
Return on capital employed	%	47.9	53.4

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

MARICO Share Price Performance

Over the last one year, MARICO share price has moved up from Rs 539.7 to Rs 662.8, registering a gain of Rs 123.1 or around 22.8%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 21,847.3 (up 0.4%). Over the last one year it has moved up from 19,173.9 to 21,847.3, a gain of 2,673 points (up 13.9%).

Overall, the S&P BSE SENSEX is up 23.6% over the year.

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