MUKAND 2023-24 Annual Report Analysis

Wed, 17 Jul

MUKAND 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.

MUKAND Income Statement Analysis

• Operating income during the year fell 7.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.5% in FY24 as against 3.6% in FY23.
• Depreciation charges decreased by 5.1% and finance costs decreased by 25.7% YoY, respectively.
• Other income declined by 87.1% YoY.
• Net profit for the year declined by 40.2% YoY.
• Net profit margins during the year declined from 3.1% in FY23 to 2.0% in FY24.

MUKAND Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	55,676	51,748	-7.1%
Other income	Rs m	6,019	774	-87.1%
Total Revenues	Rs m	61,695	52,522	-14.9%
Gross profit	Rs m	-2,003	2,306	NA
Depreciation	Rs m	524	497	-5.1%
Interest	Rs m	1,770	1,315	-25.7%
Profit before tax	Rs m	1,723	1,268	-26.4%
Tax	Rs m	5	241	4,824.5%
Profit after tax	Rs m	1,718	1,027	-40.2%
Gross profit margin	%	-3.6	4.5
Effective tax rate	%	0.3	19.0
Net profit margin	%	3.1	2.0

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MUKAND Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 8 billion in FY23, thereby witnessing an decrease of -21.3%.
• Long-term debt down at Rs 14 billion as compared to Rs 14 billion during FY23, a fall of 1.1%.
• Current assets fell 5% and stood at Rs 24 billion, while fixed assets fell 0% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 30 billion as against Rs 31 billion during FY23, thereby witnessing a fall of 3%.

MUKAND Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,538	9,211	7.9
Current Liabilities	Rs m	8,122	6,395	-21.3
Long-term Debt	Rs m	14,484	14,331	-1.1
Total Liabilities	Rs m	31,445	30,350	-3.5
Current assets	Rs m	24,704	23,587	-4.5
Fixed Assets	Rs m	6,553	6,530	-0.4
Total Assets	Rs m	31,445	30,350	-3.5

MUKAND Cash Flow Statement Analysis

• MUKAND's cash flow from operating activities (CFO) during FY24 stood at Rs 649 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 990 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion, an improvement of 79% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 117 million from the Rs -29 million net cash flows seen during FY23.

MUKAND 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	1,059	649	-38.7%
Cash Flow from Investing Activities	Rs m	6,188	990	-84.0%
Cash Flow from Financing Activities	Rs m	-7,277	-1,523	-
Net Cash Flow	Rs m	-29	117	-

Current Valuations for MUKAND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.1, an decline from the EPS of Rs 11.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 172.9, stands at 24.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 15.5 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	385.3	358.1
TTM Earnings per share	Rs	11.9	7.1
Diluted earnings per share	Rs	11.9	7.1
Price to Cash Flow	x	9.0	15.5
TTM P/E ratio	x	11.4	24.3
Price / Book Value ratio	x	2.2	2.6
Market Cap	Rs m	18,961	23,697
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for MUKAND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.7x during FY24, from 3.0x 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 2.0x 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 11.1% during FY24, from 20.1% 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 11.0% during FY24, from 15.2% 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 7.7% 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	3.0	3.7
Debtors’ Days	Days	3	4
Interest coverage	x	2.0	2.0
Debt to equity ratio	x	1.7	1.6
Return on assets	%	11.1	7.7
Return on equity	%	20.1	11.1
Return on capital employed	%	15.2	11.0

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

MUKAND Share Price Performance

Over the last one year, MUKAND share price has moved up from Rs 122.4 to Rs 172.9, registering a gain of Rs 50.5 or around 41.3%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 33,188.2 (up 0.3%). Over the last one year it has moved up from 21,445.2 to 33,188.2, a gain of 11,743 points (up 54.8%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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