Mohindra Fasteners Unlisted Shares

Mohindra Fasteners Limited Balance Sheet (Rs in Lakhs)

Particulars	31-03-2023	31-03-2022
ASSETS
Non-Current Assets
Property, Plant & Equipment	6104.86	2745.85
Capital Work in Progress	79.56	1324
Investment Property	69.94	0
Right-of-use Assets	0	9.33
Other Intangible Assets	6.51	5.81
Intangible under development	21.32	0
Financial Assets
Investments	88.33	103.66
Trade Receivables	33.63	19.96
Other Financial Assets	1113.58	105.12
Other Non-Current Assets	109.25	672.59
Total Non-Current Assets	7626.98	4986.32
Current Assets
Inventories	3003.87	2808.11
Financial Assets
Trade Receivables	3936.56	3068.96
Cash and Cash Equivalents	1145.75	1983.27
Bank Balance other than above	20.96	18.49
Other Financial Assets	35.93	76.71
Other Current Assets	1074.72	1190.02
Total Assets	16844.77	14131.88
EQUITY AND LIABILITIES
Equity
Equity Share Capital	589.25	589.25
Other Equity	8886.89	7571.2
Total Equity	9476.14	8160.45
Liabilities
Non-Current Liabilities
Borrowings	1578.39	908.65
Provisions	26.35	58.85
Deferred Tax Liabilities (Net)	169.76	99.87
Total Non-Current Liabilities	1774.5	1067.37
Current Liabilities
Borrowings	2127.94	1919.07
Lease Liabilities	–	11.73
Trade Payables
Micro Enterprises and Small Enterprises	113.37	60.76
Creditors other than Micro Enterprises and Small Enterprises	2822.38	2473.39
Other Financial Liabilities	37.2	58.34
Other Current Liabilities	269.01	247.21
Provisions	185.43	118.38
Current Tax Liabilities (Net)	38.8	15.18
Total Current Liabilities	5594.13	4904.06
Total Liabilities	7368.63	5971.43
Total Equity & Liabilities	16844.77	14131.88

Mohindra Fasteners Limited Profit & Loss Statement (Rs in Lakhs)

Particulars	31-03-2023	31-03-2022
Income:
Revenue from operations	17,210.96	13,680.67
Other Income	379.92	281.19
Total Income	17,590.88	13,961.86
Expenses:
Cost of Materials Consumed	6,866.09	5,427.97
Changes in inventories of Finished Goods, Work-In-Progress & Stock in Trade	-230.75	-648.29
Employee Benefits Expense	2,837.42	2,516.20
Finance Costs	199.06	74.6
Depreciation and Amortization Expense	423.68	238.7
Other Expenses	5,467.65	4,670.54
Total Expenses	15,563.15	12,279.72
Profit before exceptional items and Share of Loss of Investment accounted for using equity method and tax	2,027.73	1,682.14
Exceptional items	–	–
Profit before Share of Loss of Investment accounted for using equity method and tax	2,027.73	1,682.14
Share of (Loss) of Investment accounted for using equity method	-23.69	-8.22
Profit before tax	2,004.04	1,673.92
Tax expense:
Current Tax	441.42	447.3
Deferred Tax	57.23	-9.86
Total Tax Expense	498.65	437.44
Profit for the year	1,505.39	1,236.48
Items that will not be reclassified to profit or loss
Re-measurement of the defined benefit plans	50.3	-24.52
Income tax effect on (a) above	-12.66	6.17
Fair value changes on Equity instruments through Other Comprehensive Income	8.36	-0.26
– Income tax effect on (c) above	–	–
Total Other comprehensive income/(Loss) for the year (Net of Tax)	46	-18.61
Total comprehensive income for the year	1,551.39	1,217.87
Earnings per equity share
Basic (in Rs)	25.55	23
Diluted (in Rs)	25.55	23

Mohindra Fasteners Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Particulars	31-03-2023	31-03-2022
Cash Flow from Operating Activities
Net Profit before tax	2027.73	1682.14
Adjustment for:
Depreciation and Amortization Expense	423.68	238.7
Loss/(Profit) on disposal of Property, Plant & Equipment (Net)	-0.3	0
Share of (Loss) of Investment accounted for using equity method	-23.69	-8.22
Remeasurement of Defined Benefit Plans	50.3	-24.52
Finance Costs	199.06	74.6
Rental Income	-1.65	0
Interest Income	-104.16	-120.26
Dividend Income	-0.06	-0.04
Operating Profit before Working Capital Changes	2570.91	1842.4
(Increase) in Inventories	-195.76	-1,012.72
(Increase) in other current assets	-713.99	-1,009.71
Decrease/ (Increase) in Non-current Assets	-1,022.92	299.69
Increase in Trade payables	401.59	582.88
Increase in other current liabilities	67.72	57.52
Increase/ (decrease) in Non-current liabilities	-32.5	33.14
Cash generated from operations	1075.05	793.2
Income taxes Paid (Net)	-417.81	-424.31
Net Cash from Operating Activities	657.24	368.89
Cash Flow from Investing Activities
Purchase of Property, plant & equipment (including Capital-work-in-progress and Payment for capital advances) and intangible assets	-2,064.27	-2,146.02
Proceeds from disposal of Property, Plant & Equipment	7.83	0
Investment in Equity Instruments	23.69	-94.42
Rental income	1.65	0
Interest Income	104.16	120.26
Dividend Income	0.06	0.04
Net Cash (used in)/from Investing Activities	-1,926.88	-2,120.14
Cash Flow from Financing Activities
Proceeds from issue of Equity Shares capital	0	482.09
Proceeds of Long Term Borrowings (Net)	669.74	908.65
Proceeds of Short term Borrowings (Net)	208.87	408.51
Interest Paid	-197.77	-71.87
Dividends Paid	-235.7	-160.7
Payment of Lease Liabilities	-13.02	-15.89
Net Cash from Financing Activities	432.12	1550.79
Net (decrease) in Cash and cash equivalents	-837.52	-200.46
Cash and Cash Equivalents at the Beginning of the Year	1983.27	2183.73
Cash and Cash Equivalents at the End of the Year	1145.75	1983.27
Components of cash and cash equivalents
Balance with scheduled Banks in current Accounts	0	19.25
Cash on Hand	2.72	2.38
Balance with banks in deposit accounts with original maturity up to three months	1143.03	1961.64
Total Cash and Cash Equivalents at the End of the Year	1145.75	1983.27

Here is the analysis of cash flow statement of 2023 and 2022:

Cash Flow from Operating Activities

Net Profit before tax:

For the year ending 31st March 2023, the net profit before tax was ₹2027.73 million, compared to ₹1682.14 million for the previous year, indicating an improvement in profitability.

Adjustments for Non-Cash and Non-Operating Items:

Depreciation and Amortization Expense: Increased to ₹423.68 million from ₹238.7 million, reflecting higher capital expenditure and asset base.

Loss/ (Profit) on disposal of Property, Plant & Equipment (Net): A small loss of ₹0.3 million in 2023 versus no loss/profit in 2022.

Share of (Loss) of Investment accounted for using equity method: Increased loss of ₹23.69 million in 2023 from ₹8.22 million in 2022.

Remeasurement of Defined Benefit Plans: A remeasurement expense of ₹50.3 million in 2023 compared to an income of ₹24.52 million in 2022.

Finance Costs: Increased significantly to ₹199.06 million from ₹74.6 million, indicating higher borrowing costs or increased debt.

Rental Income: ₹1.65 million in 2023, whereas there was none in 2022.

Interest Income: Decreased to ₹104.16 million from ₹120.26 million.

Dividend Income: Minimal increase to ₹0.06 million from ₹0.04 million.

Operating Profit before Working Capital Changes:

Increased to ₹2570.91 million in 2023 from ₹1842.4 million in 2022, indicating better core business operations.

Changes in Working Capital:

(Increase) in Inventories: Lowered to ₹195.76 million in 2023 from a significant ₹1012.72 million increase in 2022.

(Increase) in other current assets: ₹713.99 million in 2023 compared to ₹1009.71 million in 2022, showing a decrease in the growth rate of current assets.

Decrease/ (Increase) in Non-current Assets: Increased significantly to ₹1022.92 million from a decrease of ₹299.69 million.

Increase in Trade Payables: Decreased to ₹401.59 million from ₹582.88 million.

Increase in other current liabilities: Slightly increased to ₹67.72 million from ₹57.52 million.

Increase/ (decrease) in Non-current liabilities: Swung to a decrease of ₹32.5 million from an increase of ₹33.14 million.

Cash Generated from Operations:

Higher cash generation from operations at ₹1075.05 million in 2023 compared to ₹793.2 million in 2022.

Income Taxes Paid (Net):

A slight decrease in tax payments to ₹417.81 million from ₹424.31 million.

Net Cash from Operating Activities:

Net cash generated from operations increased to ₹657.24 million in 2023 from ₹368.89 million in 2022, reflecting overall better operational efficiency and profitability.

Cash Flow from Investing Activities

Purchase of Property, Plant & Equipment:

A slight decrease in expenditure on capital assets to ₹2064.27 million from ₹2146.02 million.

Proceeds from Disposal of Property, Plant & Equipment:

Increased proceeds to ₹7.83 million in 2023 compared to no proceeds in 2022.

Investment in Equity Instruments:

A positive inflow of ₹23.69 million in 2023 compared to an outflow of ₹94.42 million in 2022, indicating divestments or returns on investments.

Rental Income, Interest Income, and Dividend Income:

Received rental income of ₹1.65 million.

Interest income decreased to ₹104.16 million from ₹120.26 million.

Dividend income remained negligible but slightly higher at ₹0.06 million.

Net Cash (used in)/from Investing Activities:

Net cash outflow from investing activities was reduced to ₹1926.88 million from ₹2120.14 million, indicating a slightly lower investment in capital assets.

Cash Flow from Financing Activities

Proceeds from Issue of Equity Shares Capital:

No new equity was issued in 2023 compared to ₹482.09 million in 2022.

Proceeds of Long Term Borrowings (Net):

Decreased to ₹669.74 million from ₹908.65 million, indicating lower new long-term borrowings.

Proceeds of Short-term Borrowings (Net):

Decreased to ₹208.87 million from ₹408.51 million.

Interest Paid:

Increased significantly to ₹197.77 million from ₹71.87 million, reflecting higher financing costs.

Dividends Paid:

Increased to ₹235.7 million from ₹160.7 million, reflecting higher returns to shareholders.

Payment of Lease Liabilities:

Decreased slightly to ₹13.02 million from ₹15.89 million.

Net Cash from Financing Activities:

Decreased to ₹432.12 million in 2023 from ₹1550.79 million in 2022, showing lower overall financing activity.

Net Change in Cash and Cash Equivalents

Net (decrease) in Cash and Cash Equivalents:

The net decrease in cash and cash equivalents was ₹837.52 million in 2023 compared to ₹200.46 million in 2022.

Cash and Cash Equivalents at the Beginning of the Year:

₹1983.27 million in 2023 compared to ₹2183.73 million in 2022.

Cash and Cash Equivalents at the End of the Year:

Decreased to ₹1145.75 million in 2023 from ₹1983.27 million in 2022.

Components of Cash and Cash Equivalents

Balance with Scheduled Banks in Current Accounts:

Nil in 2023 compared to ₹19.25 million in 2022.

Cash on Hand:

Slight increase to ₹2.72 million from ₹2.38 million.

Balance with Banks in Deposit Accounts with Original Maturity up to Three Months:

Decreased to ₹1143.03 million from ₹1961.64 million.

Total Cash and Cash Equivalents at the End of the Year:

Stood at ₹1145.75 million, reflecting a significant decrease from the previous year.

Financial Ratios of Mohindra Fasteners Limited

Key Ratios	2023	2022
Debtors Turnover Ratio	75	72
Inventory Turnover Ratio	99	114
Interest Coverage Ratio	13.85	23.55
Current Ratio	1.65	1.86
Debt Equity Ratio	0.39%	0.35%
Operating Profit Ratio	12%	13%
Net Profit Ratio	9%	9%
Return on Net worth Ratio	21%	20%

Here is a summary of the financial and operational metrics for Mohindra Fasteners Limited for the year 2023 & 2022:

Debtors Turnover Ratio:

2023: 75

2022: 72

Analysis: The increase in the debtors turnover ratio indicates that the company has improved its efficiency in collecting receivables. Higher ratios generally suggest that the company is able to collect its debtors more frequently during the year.

Inventory Turnover Ratio:

2023: 99

2022: 114

Analysis: The inventory turnover ratio has decreased, which suggests that the company is holding onto inventory longer than it did in the previous year. This might indicate slower sales or overstocking.

Interest Coverage Ratio:

2023: 13.85

2022: 23.55

Analysis: The decline in the interest coverage ratio indicates that the company’s ability to cover its interest expenses with its operating income has weakened. This could be due to increased interest costs or lower operating profits.

Current Ratio:

2023: 1.65

2022: 1.86

Analysis: A decrease in the current ratio suggests that the company’s liquidity position has slightly weakened, meaning it has fewer current assets available to cover its current liabilities compared to the previous year.

Debt Equity Ratio:

2023: 0.39

2022: 0.35

Analysis: The increase in the debt-equity ratio indicates that the company has increased its leverage slightly, relying more on debt financing compared to equity financing.

Operating Profit Ratio:

2023: 12%

2022: 13%

Analysis: A decrease in the operating profit ratio indicates that the company’s operating efficiency has reduced, leading to lower operating profits as a percentage of total revenue.

Net Profit Ratio:

2023: 9%

2022: 9%

Analysis: The net profit ratio remains stable, suggesting that the company’s net profitability has not changed significantly despite other operational changes.

Return on Net worth Ratio:

2023: 21%

2022: 20%

Analysis: An increase in the return on net worth ratio indicates that the company has improved its ability to generate profit from shareholders’ equity, suggesting better overall performance and efficiency in utilizing its equity base.

Industry overview

Indian Automotive Market size was valued at USD 108.10 Billion in 2022 and is poised to grow from USD 116.86 Billion in 2023 to USD 217.90 Billion by 2031, at a CAGR of 8.1% during the forecast period (2024-2031).India is a major contributor to the global automotive industry, and thus the Indian automotive market is witnessing widespread growth. Recently, the Indian automotive market has consistently grown, even in the face of several challenges.