MONARCH NETWORTH CAPITAL 2023-24 Annual Report Analysis

Tue, 3 Sep

MONARCH NETWORTH CAPITAL 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.

MONARCH NETWORTH CAPITAL Income Statement Analysis

• Operating income during the year rose 66.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 170.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 61.4% in FY24 as against 37.8% in FY23.
• Depreciation charges increased by 54.4% and finance costs increased by 126.0% YoY, respectively.
• Other income grew by 232.5% YoY.
• Net profit for the year grew by 186.6% YoY.
• Net profit margins during the year grew from 27.5% in FY23 to 47.4% in FY24.

MONARCH NETWORTH CAPITAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,563	2,596	66.2%
Other income	Rs m	58	194	232.5%
Total Revenues	Rs m	1,621	2,790	72.1%
Gross profit	Rs m	590	1,595	170.3%
Depreciation	Rs m	11	17	54.4%
Interest	Rs m	58	130	126.0%
Profit before tax	Rs m	579	1,641	183.3%
Tax	Rs m	150	409	173.7%
Profit after tax	Rs m	430	1,232	186.6%
Gross profit margin	%	37.8	61.4
Effective tax rate	%	25.8	24.9
Net profit margin	%	27.5	47.4

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

MONARCH NETWORTH CAPITAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 19.8%.
• Long-term debt down at Rs 20 million as compared to Rs 23 million during FY23, a fall of 14.6%.
• Current assets rose 35% and stood at Rs 8 billion, while fixed assets rose 13% and stood at Rs 520 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 33%.

MONARCH NETWORTH CAPITAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,187	3,383	54.7
Current Liabilities	Rs m	3,817	4,574	19.8
Long-term Debt	Rs m	23	20	-14.6
Total Liabilities	Rs m	6,069	8,071	33.0
Current assets	Rs m	5,610	7,551	34.6
Fixed Assets	Rs m	460	520	13.0
Total Assets	Rs m	6,069	8,071	33.0

MONARCH NETWORTH CAPITAL Cash Flow Statement Analysis

• MONARCH NETWORTH CAPITAL's cash flow from operating activities (CFO) during FY24 stood at Rs -1 billion, an improvement of 546.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 14 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 937 million, an improvement of 2,084% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -392 million from the Rs -432 million net cash flows seen during FY23.

MONARCH NETWORTH CAPITAL 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	-208	-1,342	-
Cash Flow from Investing Activities	Rs m	-177	14	-
Cash Flow from Financing Activities	Rs m	-47	937	-
Net Cash Flow	Rs m	-432	-392	-

Current Valuations for MONARCH NETWORTH CAPITAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 36.4, an improvement from the EPS of Rs 12.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 845.4, stands at 22.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.8 times, while the price to sales ratio stands at 11.0 times.
• The company's price to cash flow (P/CF) ratio stood at 12.0 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	46.1	76.7
TTM Earnings per share	Rs	12.7	36.4
Diluted earnings per share	Rs	11.0	31.4
Price to Cash Flow	x	17.3	12.0
TTM P/E ratio	x	17.7	22.7
Price / Book Value ratio	x	4.7	4.4
Market Cap	Rs m	10,250	14,938
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for MONARCH NETWORTH CAPITAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.5x 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 13.6x during FY24, from 11.1x 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 36.4% during FY24, from 19.6% 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 52.0% during FY24, from 28.8% 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 16.9% during FY24, from 8.0% 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	1.5	1.7
Debtors’ Days	Days	1,021	1,170
Interest coverage	x	11.1	13.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.0	16.9
Return on equity	%	19.6	36.4
Return on capital employed	%	28.8	52.0

To see how MONARCH NETWORTH CAPITAL has performed over the last 5 years, please visit here.

MONARCH NETWORTH CAPITAL Share Price Performance

Over the last one year, MONARCH NETWORTH CAPITAL share price has moved up from Rs 349.5 to Rs 845.4, registering a gain of Rs 495.9 or around 141.9%.

Overall, the S&P BSE SENSEX is up 26.8% over the year.

(To know more, check out historical annual results for MONARCH NETWORTH CAPITAL and quarterly results for MONARCH NETWORTH CAPITAL)