The company's revenue contraction of 36.54% combined with a razor-thin 0.46% operating margin indicates severe structural pressure on profitability.
| Metric | Apr'25 | Apr'24 | Apr'23 |
|---|
| Sales/Revenue | 15.36M | 24.2M | 21.86M |
| Revenue Growth % | -36.54% | 10.71% | - |
| Cost of Goods Sold | 12.98M | 20.36M | 19.21M |
| COGS % of Revenue | 84.54% | 84.14% | 87.86% |
| Gross Profit | 2.37M | 3.84M | 2.65M |
| Gross Margin % | 15.46% | 15.86% | 12.14% |
| Gross Profit Growth % | -38.14% | 44.65% | - |
| Operating Expenses | 2.3M | 1.8M | 1.86M |
| OpEx % of Revenue | 15% | 7.42% | 8.52% |
| Selling, General & Admin | 2.14M | 1.5M | 1.5M |
| SG&A % of Revenue | 13.96% | 6.2% | 6.88% |
| Research & Development | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - |
| Other Operating Expenses | 158.71K | 295.8K | 358.95K |
| Operating Income | 70.86K | 2.04M | 790.29K |
| Operating Margin % | 0.46% | 8.44% | 3.62% |
| Operating Income Growth % | -96.53% | 158.49% | - |
| EBITDA | 156.55K | 2.15M | 909.19K |
| EBITDA Margin % | 1.02% | 8.87% | 4.16% |
| EBITDA Growth % | -92.7% | 136.01% | - |
| D&A (Non-Cash Add-back) | 85.68K | 102.99K | 118.9K |
| EBIT | 115.64K | 2.09M | 868.63K |
| Net Interest Income | -129.56K | -100.51K | -49.52K |
| Interest Income | 158 | 149 | 381 |
| Interest Expense | 90.72K | 68.17K | 47.36K |
| Other Income/Expense | -45.93K | -19.47K | 30.98K |
| Pretax Income | 24.93K | 2.02M | 821.27K |
| Pretax Margin % | 0.16% | 8.36% | 3.76% |
| Income Tax | -18.05K | 15.85K | 37.53K |
| Effective Tax Rate % | -72.41% | 0.78% | 4.57% |
| Net Income | 42.98K | 2.01M | 807.98K |
| Net Margin % | 0.28% | 8.29% | 3.7% |
| Net Income Growth % | -97.86% | 148.45% | - |
| Net Income (Continuing) | 42.98K | 2.01M | 783.74K |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | 0.00 | 0.06 | 0.02 |
| EPS Growth % | -97.91% | 148.48% | - |
| EPS (Basic) | 0.00 | 0.06 | 0.02 |
| Diluted Shares Outstanding | 35M | 35M | 35M |
| Basic Shares Outstanding | 35M | 35M | 35M |
| Dividend Payout Ratio | 2326.66% | 22.42% | 30.94% |
Severe revenue contraction risk
As reported in recent financial disclosures, MAGH experienced a significant 36.54% year-over-year revenue decline, which suggests a failure to replenish its project backlog and highlights the company's extreme sensitivity to the cyclical nature of the Singaporean construction market and its reliance on large-scale project completions.
The sharp top-line deterioration indicates that the company is struggling to secure new contracts in a competitive bidding environment. This trend suggests that the firm's reliance on transactional, project-based revenue lacks the durability required to sustain operations during construction downturns.
According to the company's latest income statement data, the operating margin has compressed to a razor-thin 0.46%, reflecting a structural inability to absorb fixed administrative costs and labor levies while navigating the intense pricing pressures inherent in the Singaporean mechanical and electrical engineering services sector.
The 15.46% gross margin appears insufficient to cover the company's overhead, leaving virtually no buffer for operational inefficiencies or unexpected project costs. Investors should monitor whether management can pivot toward higher-margin licensing services to offset the ongoing erosion of profitability in its core installation business.
Based on the provided financial figures, the company's cost structure is heavily weighted toward variable labor and material inputs, yet the inability to maintain profitability during a revenue downturn suggests that management has failed to effectively right-size its administrative expense base in response to declining project volume.
The current cost structure appears rigid, as the net margin of 0.28% leaves the firm highly vulnerable to any further decline in activity. This lack of expense discipline warrants further investigation into whether intercompany service allocations from the parent entity are artificially inflating the company's fixed cost burden.
As indicated by the reported cash balance of approximately $759,891 against $15 million in revenue, the company faces a precarious liquidity position that may be exacerbated by the percentage-of-completion accounting method if milestone payments from clients are delayed or if project certifications face significant regulatory hurdles.
While the low debt-to-equity ratio of 3.90% provides a theoretical buffer, the actual cash-to-revenue ratio suggests that the company lacks the working capital flexibility to navigate prolonged project delays. This financial profile implies that the firm may be forced to rely on external support to maintain operational continuity.
Quick answers to the most common questions about buying MAGH stock.
For fiscal year 2024, Magnitude International Ltd Ordinary Shares (MAGH) reported total revenue of $15.4M. This represents a 29.7% decline compared to $21.9M in 2022.
Magnitude International Ltd Ordinary Shares (MAGH) is profitable, generating $0.0M in net income for the fiscal year ending 2024 with a net profit margin of 0.3%.
Magnitude International Ltd Ordinary Shares (MAGH) reported an operating income of $0.1M, resulting in an operating profit margin of 0.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Magnitude International Ltd Ordinary Shares (MAGH) generated $2.4M in gross profit for the year, representing a gross profit margin of 15.5%. This demonstrates the company's core pricing power and production efficiency.