MAZDA 2023-24 Annual Report Analysis

Mon, 19 Aug

MAZDA 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.

MAZDA Income Statement Analysis

• Operating income during the year rose 17.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.6% in FY24 as against 19.4% in FY23.
• Depreciation charges increased by 27.4% and finance costs decreased by 13.5% YoY, respectively.
• Other income grew by 181.4% YoY.
• Net profit for the year grew by 18.4% YoY.
• Net profit margins during the year grew from 13.9% in FY23 to 14.0% in FY24.

MAZDA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,915	2,254	17.7%
Other income	Rs m	23	66	181.4%
Total Revenues	Rs m	1,939	2,320	19.7%
Gross profit	Rs m	372	398	7.0%
Depreciation	Rs m	32	40	27.4%
Interest	Rs m	6	5	-13.5%
Profit before tax	Rs m	357	418	17.0%
Tax	Rs m	91	103	12.9%
Profit after tax	Rs m	266	315	18.4%
Gross profit margin	%	19.4	17.6
Effective tax rate	%	25.5	24.6
Net profit margin	%	13.9	14.0

Don't Miss: Key Information for Long-term Investors

MAZDA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 237 million as compared to Rs 341 million in FY23, thereby witnessing an decrease of -30.6%.
• Current assets rose 11% and stood at Rs 2 billion, while fixed assets fell 0% and stood at Rs 791 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 7%.

MAZDA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,859	2,122	14.2
Current Liabilities	Rs m	341	237	-30.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,243	2,405	7.2
Current assets	Rs m	1,449	1,613	11.3
Fixed Assets	Rs m	793	791	-0.2
Total Assets	Rs m	2,243	2,405	7.2

MAZDA Cash Flow Statement Analysis

• MAZDA's cash flow from operating activities (CFO) during FY24 stood at Rs 430 million, an improvement of 82.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -303 million, an improvement of 107.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -65 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 63 million from the Rs 34 million net cash flows seen during FY23.

MAZDA 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	236	430	82.4%
Cash Flow from Investing Activities	Rs m	-146	-303	-
Cash Flow from Financing Activities	Rs m	-56	-65	-
Net Cash Flow	Rs m	34	63	84.9%

Current Valuations for MAZDA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 78.6, an improvement from the EPS of Rs 66.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,286.0, stands at 19.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 12.7 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	477.6	562.2
TTM Earnings per share	Rs	66.4	78.6
Diluted earnings per share	Rs	66.5	78.7
Price to Cash Flow	x	8.3	12.7
TTM P/E ratio	x	9.3	19.3
Price / Book Value ratio	x	1.4	2.1
Market Cap	Rs m	2,576	4,526
Dividends per share (Unadj.)	Rs	14.0	16.0

Ratio Analysis for MAZDA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.8x during FY24, from 4.3x 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 77.8x during FY24, from 57.8x 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 14.9% during FY24, from 14.3% 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 19.9% during FY24, from 19.6% 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 13.3% during FY24, from 12.2% 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	4.3	6.8
Debtors’ Days	Days	700	537
Interest coverage	x	57.8	77.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.2	13.3
Return on equity	%	14.3	14.9
Return on capital employed	%	19.6	19.9

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

MAZDA Share Price Performance

Over the last one year, MAZDA share price has moved up from Rs 908.2 to Rs 1,286.0, registering a gain of Rs 377.8 or around 41.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,060.8 (up 0.3%). Over the last one year it has moved up from 43,172.9 to 73,060.8, a gain of 29,888 points (up 69.2%).

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

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