MAWANA SUGARS 2023-24 Annual Report Analysis

Wed, 12 Jun

MAWANA SUGARS 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.

MAWANA SUGARS Income Statement Analysis

• Operating income during the year fell 8.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.7% in FY24 as against 5.1% in FY23.
• Depreciation charges decreased by 0.8% and finance costs increased by 6.5% YoY, respectively.
• Other income grew by 802.6% YoY.
• Net profit for the year grew by 186.7% YoY.
• Net profit margins during the year grew from 0.9% in FY23 to 2.8% in FY24.

MAWANA SUGARS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	14,817	13,551	-8.5%
Other income	Rs m	31	276	802.6%
Total Revenues	Rs m	14,848	13,827	-6.9%
Gross profit	Rs m	757	905	19.5%
Depreciation	Rs m	356	354	-0.8%
Interest	Rs m	279	297	6.5%
Profit before tax	Rs m	152	530	248.3%
Tax	Rs m	21	154	632.9%
Profit after tax	Rs m	131	377	186.7%
Gross profit margin	%	5.1	6.7
Effective tax rate	%	13.8	29.0
Net profit margin	%	0.9	2.8

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MAWANA SUGARS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 20.2%.
• Current assets rose 24% and stood at Rs 10 billion, while fixed assets fell 7% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 10 billion during FY23, thereby witnessing a growth of 16%.

MAWANA SUGARS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,843	4,102	6.7
Current Liabilities	Rs m	6,311	7,585	20.2
Long-term Debt	Rs m	72	0	-100.0
Total Liabilities	Rs m	10,043	11,651	16.0
Current assets	Rs m	7,725	9,550	23.6
Fixed Assets	Rs m	2,271	2,101	-7.5
Total Assets	Rs m	10,043	11,651	16.0

MAWANA SUGARS Cash Flow Statement Analysis

• MAWANA SUGARS's cash flow from operating activities (CFO) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 46 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 289% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -163 million from the Rs -60 million net cash flows seen during FY23.

MAWANA SUGARS 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	1,084	-1,644	-
Cash Flow from Investing Activities	Rs m	-386	46	-
Cash Flow from Financing Activities	Rs m	-758	1,434	-
Net Cash Flow	Rs m	-60	-163	-

Current Valuations for MAWANA SUGARS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.6, an improvement from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 108.1, stands at 11.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 5.5 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	378.8	346.4
TTM Earnings per share	Rs	3.4	9.6
Diluted earnings per share	Rs	3.4	9.6
Price to Cash Flow	x	7.3	5.5
TTM P/E ratio	x	26.4	11.2
Price / Book Value ratio	x	1.3	1.0
Market Cap	Rs m	4,982	3,980
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for MAWANA SUGARS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.2x 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 2.8x during FY24, from 1.5x 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 9.2% during FY24, from 3.4% 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 20.2% during FY24, from 11.0% 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 5.8% during FY24, from 4.1% 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	1.2	1.3
Debtors’ Days	Days	1	1
Interest coverage	x	1.5	2.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.1	5.8
Return on equity	%	3.4	9.2
Return on capital employed	%	11.0	20.2

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

MAWANA SUGARS Share Price Performance

Over the last one year, MAWANA SUGARS share price has moved up from Rs 98.4 to Rs 108.1, registering a gain of Rs 9.7 or around 9.9%.

Overall, the S&P BSE SENSEX is up 22.7% over the year.

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