MIRZA INTERNATIONAL 2023-24 Annual Report Analysis

Wed, 3 Jul

MIRZA INTERNATIONAL 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.

MIRZA INTERNATIONAL Income Statement Analysis

• Operating income during the year fell 3.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 20.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.7% in FY24 as against 9.4% in FY23.
• Depreciation charges increased by 10.7% and finance costs increased by 20.5% YoY, respectively.
• Other income declined by 17.9% YoY.
• Net profit for the year declined by 54.5% YoY.
• Net profit margins during the year declined from 4.0% in FY23 to 1.9% in FY24.

MIRZA INTERNATIONAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,530	6,304	-3.5%
Other income	Rs m	98	80	-17.9%
Total Revenues	Rs m	6,628	6,384	-3.7%
Gross profit	Rs m	616	487	-20.9%
Depreciation	Rs m	256	283	10.7%
Interest	Rs m	98	118	20.5%
Profit before tax	Rs m	360	166	-53.8%
Tax	Rs m	95	46	-52.1%
Profit after tax	Rs m	264	120	-54.5%
Gross profit margin	%	9.4	7.7
Effective tax rate	%	26.5	27.5
Net profit margin	%	4.0	1.9

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

MIRZA INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -8.1%.
• Long-term debt down at Rs 5 million as compared to Rs 171 million during FY23, a fall of 97.3%.
• Current assets fell 4% and stood at Rs 3 billion, while fixed assets rose 1% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 7 billion during FY23, thereby witnessing a fall of 1%.

MIRZA INTERNATIONAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,334	5,526	3.6
Current Liabilities	Rs m	1,418	1,302	-8.1
Long-term Debt	Rs m	171	5	-97.3
Total Liabilities	Rs m	7,292	7,191	-1.4
Current assets	Rs m	3,195	3,055	-4.4
Fixed Assets	Rs m	4,097	4,136	1.0
Total Assets	Rs m	7,292	7,191	-1.4

MIRZA INTERNATIONAL Cash Flow Statement Analysis

• MIRZA INTERNATIONAL's cash flow from operating activities (CFO) during FY24 stood at Rs 497 million, an improvement of 5.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -294 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -168 million, an improvement of 48% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 35 million from the Rs -389 million net cash flows seen during FY23.

MIRZA INTERNATIONAL 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	469	497	5.8%
Cash Flow from Investing Activities	Rs m	-535	-294	-
Cash Flow from Financing Activities	Rs m	-324	-168	-
Net Cash Flow	Rs m	-389	35	-

Current Valuations for MIRZA INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.9, an decline from the EPS of Rs 1.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 48.4, stands at 55.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 17.8 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	47.3	45.6
TTM Earnings per share	Rs	1.9	0.9
Diluted earnings per share	Rs	1.9	0.9
Price to Cash Flow	x	9.3	17.8
TTM P/E ratio	x	18.3	55.6
Price / Book Value ratio	x	5.3	1.3
Market Cap	Rs m	28,414	7,188
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MIRZA INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY24, from 2.3x 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 deteriorated and stood at 2.4x during FY24, from 4.7x 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 2.2% during FY24, from 5.0% 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 5.1% during FY24, from 8.3% 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 3.3% during FY24, from 5.0% 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	2.3	2.3
Debtors’ Days	Days	485	458
Interest coverage	x	4.7	2.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.0	3.3
Return on equity	%	5.0	2.2
Return on capital employed	%	8.3	5.1

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

MIRZA INTERNATIONAL Share Price Performance

Over the last one year, MIRZA INTERNATIONAL share price has moved down from Rs 51.4 to Rs 48.4, registering a loss of Rs 3.0 or around 5.8%.

Overall, the S&P BSE SENSEX is up 21.8% over the year.

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