MARSONS. 2023-24 Annual Report Analysis

Wed, 20 Nov

MARSONS. 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.

MARSONS. Income Statement Analysis

• Operating income during the year rose 41.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.1% in FY24 as against 22.7% in FY23.
• Depreciation charges decreased by 22.2% and finance costs decreased by 99.9% YoY, respectively.
• Other income declined by 97.4% YoY.
• Net profit for the year declined by 80.7% YoY.
• Net profit margins during the year declined from 71.6% in FY23 to 9.7% in FY24.

MARSONS. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	46	65	41.6%
Other income	Rs m	63	2	-97.4%
Total Revenues	Rs m	109	66	-39.0%
Gross profit	Rs m	10	12	12.9%
Depreciation	Rs m	9	7	-22.2%
Interest	Rs m	32	0	-99.9%
Profit before tax	Rs m	33	6	-80.7%
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	33	6	-80.7%
Gross profit margin	%	22.7	18.1
Effective tax rate	%	0.0	0.0
Net profit margin	%	71.6	9.7

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MARSONS. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 64 million as compared to Rs 59 million in FY23, thereby witnessing an increase of 9.0%.
• Long-term debt down at Rs 90 million as compared to Rs 145 million during FY23, a fall of 37.9%.
• Current assets rose 67% and stood at Rs 170 million, while fixed assets fell 4% and stood at Rs 127 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 297 million as against Rs 234 million during FY23, thereby witnessing a growth of 27%.

MARSONS. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	30	142	371.4
Current Liabilities	Rs m	59	64	9.0
Long-term Debt	Rs m	145	90	-37.9
Total Liabilities	Rs m	234	297	26.6
Current assets	Rs m	102	170	66.9
Fixed Assets	Rs m	133	127	-4.3
Total Assets	Rs m	234	297	26.6

MARSONS. Cash Flow Statement Analysis

• MARSONS.'s cash flow from operating activities (CFO) during FY24 stood at Rs -42 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 45 million, an improvement of 155% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 million from the Rs 0 million net cash flows seen during FY23.

MARSONS. 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	1	-42	-
Cash Flow from Investing Activities	Rs m	81	-1	-
Cash Flow from Financing Activities	Rs m	-82	45	-
Net Cash Flow	Rs m	0	2	1,633.3%

Current Valuations for MARSONS.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an decline from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 254.2, stands at 328.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 307.6 times, while the price to sales ratio stands at 551.0 times.
• The company's price to cash flow (P/CF) ratio stood at 220.1 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	0.4	0.5
TTM Earnings per share	Rs	0.3	0.0
Diluted earnings per share	Rs	0.2	0.0
Price to Cash Flow	x	26.2	220.1
TTM P/E ratio	x	30.8	328.8
Price / Book Value ratio	x	30.7	20.6
Market Cap	Rs m	926	2,930
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MARSONS.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY24, from 1.7x 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 210.7x during FY24, from 2.0x 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 4.4% during FY24, from 108.2% 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 2.7% during FY24, from 36.7% 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 2.1% during FY24, from 27.4% 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	1.7	2.6
Debtors’ Days	Days	7,563	8,269
Interest coverage	x	2.0	210.7
Debt to equity ratio	x	4.8	0.6
Return on assets	%	27.4	2.1
Return on equity	%	108.2	4.4
Return on capital employed	%	36.7	2.7

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

MARSONS. Share Price Performance

Over the last one year, MARSONS. share price has moved up from Rs 8.3 to Rs 254.2, registering a gain of Rs 245.9 or around 2980.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 66,327.9 (up 0.4%). Over the last one year it has moved up from 48,904.9 to 66,327.9, a gain of 17,423 points (up 35.6%).

Overall, the S&P BSE SENSEX is up 18.2% over the year.

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