MAGELLANIC CLOUD 2023-24 Annual Report Analysis

Tue, 25 Jun

MAGELLANIC CLOUD 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.

MAGELLANIC CLOUD Income Statement Analysis

• Operating income during the year rose 31.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 69.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 32.8% in FY24 as against 25.4% in FY23.
• Depreciation charges increased by 84.0% and finance costs increased by 72.2% YoY, respectively.
• Other income declined by 8.7% YoY.
• Net profit for the year grew by 38.9% YoY.
• Net profit margins during the year grew from 17.3% in FY23 to 18.4% in FY24.

MAGELLANIC CLOUD Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,275	5,604	31.1%
Other income	Rs m	191	174	-8.7%
Total Revenues	Rs m	4,466	5,779	29.4%
Gross profit	Rs m	1,085	1,839	69.5%
Depreciation	Rs m	215	395	84.0%
Interest	Rs m	123	212	72.2%
Profit before tax	Rs m	938	1,406	49.9%
Tax	Rs m	197	376	91.1%
Profit after tax	Rs m	741	1,030	38.9%
Gross profit margin	%	25.4	32.8
Effective tax rate	%	21.0	26.8
Net profit margin	%	17.3	18.4

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

MAGELLANIC CLOUD Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -24.5%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY23, a growth of 23.7%.
• Current assets rose 18% and stood at Rs 3 billion, while fixed assets rose 6% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 11%.

MAGELLANIC CLOUD Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,969	4,066	37.0
Current Liabilities	Rs m	2,401	1,813	-24.5
Long-term Debt	Rs m	1,462	1,809	23.7
Total Liabilities	Rs m	7,196	7,995	11.1
Current assets	Rs m	2,790	3,304	18.4
Fixed Assets	Rs m	4,406	4,690	6.5
Total Assets	Rs m	7,196	7,995	11.1

MAGELLANIC CLOUD Cash Flow Statement Analysis

• MAGELLANIC CLOUD's cash flow from operating activities (CFO) during FY24 stood at Rs 320 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -756 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 63 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -373 million from the Rs -48 million net cash flows seen during FY23.

MAGELLANIC CLOUD 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	1,597	320	-80.0%
Cash Flow from Investing Activities	Rs m	-3,670	-756	-
Cash Flow from Financing Activities	Rs m	2,026	63	-96.9%
Net Cash Flow	Rs m	-48	-373	-

Current Valuations for MAGELLANIC CLOUD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.8, an improvement from the EPS of Rs 6.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 616.3, stands at 70.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.7 times, while the price to sales ratio stands at 12.9 times.
• The company's price to cash flow (P/CF) ratio stood at 34.6 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	36.6	47.9
TTM Earnings per share	Rs	6.3	8.8
Diluted earnings per share	Rs	6.3	8.8
Price to Cash Flow	x	23.4	34.6
TTM P/E ratio	x	30.2	70.0
Price / Book Value ratio	x	5.1	12.1
Market Cap	Rs m	15,286	49,335
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for MAGELLANIC CLOUD

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x 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 deteriorated and stood at 7.6x during FY24, from 8.6x 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 25.3% during FY24, from 25.0% 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 improved and stood at 27.5% during FY24, from 24.0% 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 15.5% during FY24, from 12.0% 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	1.2	1.8
Debtors’ Days	Days	581	1,531
Interest coverage	x	8.6	7.6
Debt to equity ratio	x	0.5	0.4
Return on assets	%	12.0	15.5
Return on equity	%	25.0	25.3
Return on capital employed	%	24.0	27.5

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

MAGELLANIC CLOUD Share Price Performance

Over the last one year, MAGELLANIC CLOUD share price has moved up from Rs 248.2 to Rs 616.3, registering a gain of Rs 368.1 or around 148.3%.

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

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