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MTAR TECHNOLOGIES 2023-24 Annual Report Analysis

Sun, 18 Aug

MTAR 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.

MTAR TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 1.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 26.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.4% in FY24 as against 26.8% in FY23.
• Depreciation charges increased by 24.1% and finance costs increased by 53.1% YoY, respectively.
• Other income declined by 70.2% YoY.
• Net profit for the year declined by 45.7% YoY.
• Net profit margins during the year declined from 18.0% in FY23 to 9.7% in FY24.

MTAR TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,738	5,808	1.2%
Other income	Rs m	195	58	-70.2%
Total Revenues	Rs m	5,932	5,866	-1.1%
Gross profit	Rs m	1,540	1,127	-26.8%
Depreciation	Rs m	187	232	24.1%
Interest	Rs m	146	223	53.1%
Profit before tax	Rs m	1,402	730	-47.9%
Tax	Rs m	368	169	-54.0%
Profit after tax	Rs m	1,034	561	-45.7%
Gross profit margin	%	26.8	19.4
Effective tax rate	%	26.2	23.2
Net profit margin	%	18.0	9.7

For Investors: Our Big Prediction

MTAR TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -39.2%.
• Long-term debt stood at Rs 970 million as compared to Rs 777 million during FY23, a growth of 24.8%.
• Current assets fell 19% and stood at Rs 6 billion, while fixed assets rose 21% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 11 billion during FY23, thereby witnessing a fall of 5%.

MTAR TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,201	6,763	9.1
Current Liabilities	Rs m	3,416	2,078	-39.2
Long-term Debt	Rs m	777	970	24.8
Total Liabilities	Rs m	10,633	10,077	-5.2
Current assets	Rs m	6,967	5,648	-18.9
Fixed Assets	Rs m	3,666	4,428	20.8
Total Assets	Rs m	10,633	10,077	-5.2

MTAR TECHNOLOGIES Cash Flow Statement Analysis

• MTAR TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 574 million, an improvement of 674.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -556 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 253 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 270 million from the Rs -473 million net cash flows seen during FY23.

MTAR 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	74	574	674.8%
Cash Flow from Investing Activities	Rs m	-867	-556	-
Cash Flow from Financing Activities	Rs m	320	253	-21.1%
Net Cash Flow	Rs m	-473	270	-

Current Valuations for MTAR TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.2, an decline from the EPS of Rs 33.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,714.0, stands at 131.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.8 times, while the price to sales ratio stands at 9.1 times.
• The company's price to cash flow (P/CF) ratio stood at 87.3 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	186.5	188.8
TTM Earnings per share	Rs	33.6	18.2
Diluted earnings per share	Rs	33.6	18.2
Price to Cash Flow	x	39.8	87.3
TTM P/E ratio	x	47.0	131.1
Price / Book Value ratio	x	7.5	10.2
Market Cap	Rs m	46,700	69,209
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MTAR TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY24, from 2.0x 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 deteriorated and stood at 4.3x during FY24, from 10.6x 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 8.3% during FY24, from 16.7% 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 12.3% during FY24, from 22.2% 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 7.8% during FY24, from 11.1% 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	2.0	2.7
Debtors’ Days	Days	133	92
Interest coverage	x	10.6	4.3
Debt to equity ratio	x	0.1	0.1
Return on assets	%	11.1	7.8
Return on equity	%	16.7	8.3
Return on capital employed	%	22.2	12.3

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

MTAR TECHNOLOGIES Share Price Performance

Over the last one year, MTAR TECHNOLOGIES share price has moved down from Rs 2,240.2 to Rs 1,714.0, registering a loss of Rs 526.2 or around 23.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,847.6 (up 1.8%). Over the last one year it has moved up from 43,172.9 to 72,847.6, a gain of 29,675 points (up 68.7%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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