MOTHERSON SUMI WIRING 2023-24 Annual Report Analysis

Tue, 6 Aug

MOTHERSON SUMI WIRING 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.

MOTHERSON SUMI WIRING Income Statement Analysis

• Operating income during the year rose 17.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.2% in FY24 as against 11.2% in FY23.
• Depreciation charges increased by 19.1% and finance costs decreased by 1.8% YoY, respectively.
• Other income declined by 41.0% YoY.
• Net profit for the year grew by 31.1% YoY.
• Net profit margins during the year grew from 6.9% in FY23 to 7.7% in FY24.

MOTHERSON SUMI WIRING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	70,680	83,282	17.8%
Other income	Rs m	117	69	-41.0%
Total Revenues	Rs m	70,797	83,351	17.7%
Gross profit	Rs m	7,920	10,132	27.9%
Depreciation	Rs m	1,237	1,473	19.1%
Interest	Rs m	278	273	-1.8%
Profit before tax	Rs m	6,522	8,455	29.6%
Tax	Rs m	1,652	2,072	25.4%
Profit after tax	Rs m	4,870	6,383	31.1%
Gross profit margin	%	11.2	12.2
Effective tax rate	%	25.3	24.5
Net profit margin	%	6.9	7.7

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MOTHERSON SUMI WIRING Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 12 billion as compared to Rs 13 billion in FY23, thereby witnessing an decrease of -4.7%.
• Long-term debt stood at Rs 86 million as compared to Rs 78 million during FY23, a growth of 10.3%.
• Current assets rose 11% and stood at Rs 24 billion, while fixed assets fell 1% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 31 billion as against Rs 29 billion during FY23, thereby witnessing a growth of 8%.

MOTHERSON SUMI WIRING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,305	16,768	26.0
Current Liabilities	Rs m	12,879	12,274	-4.7
Long-term Debt	Rs m	78	86	10.3
Total Liabilities	Rs m	28,566	30,890	8.1
Current assets	Rs m	21,365	23,767	11.2
Fixed Assets	Rs m	7,201	7,123	-1.1
Total Assets	Rs m	28,566	30,890	8.1

MOTHERSON SUMI WIRING Cash Flow Statement Analysis

• MOTHERSON SUMI WIRING's cash flow from operating activities (CFO) during FY24 stood at Rs 8 billion, an improvement of 253.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 7.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs -3 billion net cash flows seen during FY23.

MOTHERSON SUMI WIRING 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	2,236	7,910	253.8%
Cash Flow from Investing Activities	Rs m	-1,937	-2,079	-
Cash Flow from Financing Activities	Rs m	-2,871	-4,522	-
Net Cash Flow	Rs m	-2,572	1,309	-

Current Valuations for MOTHERSON SUMI WIRING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.4, an improvement from the EPS of Rs 1.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 73.1, stands at 48.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.3 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 34.5 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	16.0	18.8
TTM Earnings per share	Rs	1.1	1.4
Diluted earnings per share	Rs	1.1	1.4
Price to Cash Flow	x	35.0	34.5
TTM P/E ratio	x	43.9	48.7
Price / Book Value ratio	x	18.8	16.2
Market Cap	Rs m	249,966	270,948
Dividends per share (Unadj.)	Rs	0.7	0.8

Ratio Analysis for MOTHERSON SUMI WIRING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x 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 32.0x during FY24, from 24.5x 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 38.1% during FY24, from 36.6% 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 51.8% during FY24, from 50.8% 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 21.5% during FY24, from 18.0% 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	1.9
Debtors’ Days	Days	41	39
Interest coverage	x	24.5	32.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.0	21.5
Return on equity	%	36.6	38.1
Return on capital employed	%	50.8	51.8

To see how MOTHERSON SUMI WIRING has performed over the last 5 years, please visit here.

MOTHERSON SUMI WIRING Share Price Performance

Over the last one year, MOTHERSON SUMI WIRING share price has moved up from Rs 60.4 to Rs 73.1, registering a gain of Rs 12.7 or around 21.0%.

Overall, the S&P BSE SENSEX is up 21.1% over the year.

(To know more, check out historical annual results for MOTHERSON SUMI WIRING and quarterly results for MOTHERSON SUMI WIRING)