Page 1 of 5 mrit Corp Ltd Sector Industry Company Profile mrit Corp Ltd was established on March 29, 1940. It is a small-cap company operating in food processing sector. Mr. K.R. Ramamoorthy is the Chairman of the company. He holds a degree in Economics and Law and is a senior member of Institute of Company Secretaries of India. He is a senior banker with over 50 years of commercial and banking experience. The promoter group holds 74.86% of the total shareholding, while the rest of the shareholding lies with the institutional (0.01%) and non-institutional (25.12%) shareholders. Stock Price Last Close Price 323.30 (25/01/2016) Market Cap (Cr.) 109.86 (31/12/2015) Price in Rs. 52 Wk High/Low 482.90/308.00 vg. Volume 102.45 (1 Mo) (Rescaled to 100 for ease of comparison) mrit is a food processing company producing dairy milk products. Its registered office is located in Ghaziabad, Uttar Pradesh and its corporate office is located in Noida. The company s plant is located in Ghaziabad, Uttar Pradesh. Business Overview mrit is a food processing company. It is engaged in production of milk and milk products, flavoured milk and cream. Its products include butter, cheese and ice-cream. The company has three operating segments; food, real estate and services. Food segment includes production of dairy products. Real Estate segment includes development of residential township. Services segment includes provision of advisory and BPO services. The food segment contributed 93% to the total turnover of the company. The major part of sales was generated from food segment. The Indian dairy industry is growing on a fast track. The investor interest in the dairy industry is also quite high. Many overseas dairy players have already put up facilities to manufacture value-added products in India. Organized retail is also growing on a fast track. Dairy products have found a place in most of these outlets. The Indian real estate industry is expected to be the world s third largest by FY 2020. The real estate contributes about 6.30% to India s gross domestic product. The market size of the sector is expected to increase at the compounded annual growth rate of 11.20% upto FY 2020. The emergence of nuclear families and growing urbanization has given rise to several townships that have developed to take care of the elderly persons. Financials Revenue 40.85 54.11 80.45 54.94 49.56 Gross Margin % -18.60 13.60 41.63 44.11 46.68 Operating Income 21.76 17.22 10.36 10.34 12.87 Operating Margin % 53.27 31.82 12.88 18.83 25.97 Diluted EPS - 295.89 26.74 27.58 33.96 Book Value Per Share 147.03 147.03 867.77 451.69 477.13 Operating Cash Flow -6.89-35.59 40.77-3.00-0.24 Capital Expenditure -0.80-2.13-1.21-5.86-1.07 Free Cash Flow -7.70-37.72 39.56-8.86-1.31 Profitability Return on ssets % 33.00 84.00 5.00 5.00 6.00 Return on Equity % 48.00 105.00 6.00 6.00 7.00 sset Turnover 0.72 0.48 0.48 0.31 0.27 Net Margin % 46.00 176.00 11.00 16.00 22.00 Financial Leverage 1.41 1.19 1.27 1.22 1.18 Financial Health except Debt/Equity (Ratio) Long Term Debt 11.68 3.15 3.09 2.21 1.29 Total Equity 47.25 133.36 140.46 147.44 156.42 Debt/Equity - - - - - Working Capital 21.64 51.06 30.32 15.29 15.30 Report as of 25-Jan-2016. Initiative of the BSE Investors Protection Fund. 2015 Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.
Page 2 of 5 mrit Corp Ltd Sector Industry Income Statement Total Revenue 40.85 54.11 80.45 54.94 49.56 Cost of Revenue 48.45 46.75 46.96 30.70 26.42 Gross Profit -7.60 7.36 33.49 24.23 23.14 Operating Expense -5.11 5.40 32.50 23.00 21.55 Operating Income 21.76 17.22 10.36 10.34 12.87 Pre-tax Income 21.76 118.43 10.36 10.34 12.87 Tax Provision 3.09 23.36 1.77 1.48 1.96 Minority Interests - - - - - Balance Sheet Stock Holders Equity 47.25 133.36 140.46 147.44 156.42 Long Term Debt 11.68 3.15 3.09 2.21 1.29 Total Non-Current Liabilities - - 4.27 3.97 4.48 Payables - 1.06 1.14 1.12 0.73 Total Liabilities - - 37.84 31.75 27.83 Net PPE 8.47 9.80 10.01 14.70 13.39 Goodwill and other Intangible ssets - 0.01 - - - Total Investments 29.48 71.55 93.62 113.11 124.09 Total Non-current ssets 37.95 86.82 114.42 136.12 145.60 Trading and Other Receivables 17.97 18.21 4.81 4.07 3.94 Inventory 5.08 15.21 7.02 4.75 4.40 Cash and Cash Equivalents 5.77 19.25 12.17 9.61 8.11 Total ssets 66.78 158.42 178.30 179.20 184.25 Cash Flows Depreciation and mortization 1.15 0.63 0.73 0.88 1.99 Change in Working Capital -7.08-16.61 39.84-2.21-2.65 Operating Cash Flow -6.89-35.59 40.77-3.00-0.24 Capital Expenditure -0.80-2.13-1.21-5.86-1.07 Investing Cash Flow 0.45 54.41-37.71 4.47 4.50 Net Common Stock Issuance - - - - - Net Issuance Payments of Debt 0.23-1.30-0.06-0.88-0.91 Cash Dividends Paid -0.75-1.29-7.71-1.29-1.61 Financing Cash Flow -1.33-5.33-10.14-4.03-4.58 Changes in Cash -7.78 13.48-7.08-2.56-0.32 Report as of 25-Jan-2016. Initiative of the BSE Investors Protection Fund. 2015 Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.
Page 3 of 5 mrit Corp Ltd Sector Industry Financial Performance In FY 2015, the total revenue of the company decreased by 9.7% to INR 49.56 crores versus a year ago on account of low volumes at dairy division and slow real estate off-take. There was an increase in operating margin by 714 basis points to 25.97%. The company registered an operating income of INR 12.87 crores, an increase of 24.5%. The net profit of the company stood at INR 10.91 crores, registering a growth of 23.1%. Revenue Growth Key Risks For its milk and dairy products, the company faces competition from multinationals entering the Indian market and also from large players such as Kwality and mul, and emerging companies such as Cream Bell, who are also in expansion mode. Since milk and milk products are perishable, the cost to maintain its durability is expensive. Global economic uncertainty has affected the real estate market. The real estate developers are reeling under high debt and slowdown in FDI flows. mrit is most resilient to these factors as it is focussing on providing reasonably priced flats and is avoiding expensive land acquisitions. Gross Margin Competitors Vadilal Dairy International Ltd and Sampre Nutritions Ltd are two of the key competitors. Vadilal Dairy International Ltd was incorporated on July 20, 1987. The company has two associates, including Bela Investment and Finance Company Private Limited and Rahil Dairy Industries Private Limited. It is an ice-cream producing company. It also provides frozen desserts. Vadilal Dairy s revenue grew by 49.4% to INR 39.36 crores in FY 2015 versus last year. Sampre Nutritions Ltd manufactures and sells sugar boiled candies and toffees. It offers products, including eclairs, candies, toffees and centre filled products. Its registered office is located in Telangana, India. Its revenue grew by 41.7% to INR 15.32 crores in FY 2014 versus last year. Operating Margin Report as of 25-Jan-2016. Initiative of the BSE Investors Protection Fund. 2015 Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.
Page 4 of 5 mrit Corp Ltd Sector Industry Industry Overview Traditionally, dairy industry has been integral to Indian rural economy. The country is the world s largest producer of dairy milk and milk products and also the largest consumer. Despite being the world s largest producer, the dairy sector is by and large in the primitive stages of development and modernization. Though India has 200 million cattle population, the average output of an Indian cow is only one-seventh of its merican counterpart. The demand side constraints are being addressed and the efforts to increase milk production have intensified. Dairy farming is now evolving from just an agrarian way of life to a professionally managed industry. The Indian real estate sector is one of the most globally recognized sectors. In the country, it is the second largest employer after agriculture and is slated to grow at 30% over the next decade. It comprises of four sub-sectors housing, retail, hospitality, and commercial. The growth of this sector is well-complemented by the growth of the corporate environment and demand for office space, as well as urban and semiurban accommodations. s a result of general economic slowdown in the past few years, the off-take in the real estate sector has been slow. Price/Earnings Trailing Returns Quarterly Results except EPS (Rs.) Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Revenue 13.30 9.69 10.05 11.77 10.28 Expenditure -12.90-10.01-10.24-11.51-10.90 Interest -0.51-0.53-0.46-0.58-0.62 PBDT -0.11-0.85-0.64-0.32-1.25 Depreciation -0.45-0.43-0.77-0.37-0.38 PBT -0.55-1.28-1.41-0.68-1.62 Tax -0.52 0.34-1.09-0.42 0.42 Net Profit 3.70 2.06 2.65 1.72 4.98 Equity 3.21 3.21 3.21 3.21 3.21 EPS 1.15 0.64 0.82 0.54 1.55 Return on Invested Capital (ROIC) *Standalone figures Report as of 25-Jan-2016. Initiative of the BSE Investors Protection Fund. 2015 Morningstar. ll Rights Reserved. Please refer to the disclaimers on the last page of this report.
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