NITIN CASTINGS 2022-23 Annual Report Analysis

Fri, 31 Mar

NITIN CASTINGS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

NITIN CASTINGS Income Statement Analysis

• Operating income during the year rose 38.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 44.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.2% in FY23 as against 6.9% in FY22.
• Depreciation charges decreased by 9.8% and finance costs decreased by 27.3% YoY, respectively.
• Other income declined by 57.9% YoY.
• Net profit for the year declined by 5.2% YoY.
• Net profit margins during the year declined from 5.3% in FY22 to 3.7% in FY23.

NITIN CASTINGS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	965	1,334	38.2%
Other income	Rs m	22	9	-57.9%
Total Revenues	Rs m	987	1,343	36.1%
Gross profit	Rs m	66	96	44.9%
Depreciation	Rs m	20	18	-9.8%
Interest	Rs m	3	2	-27.3%
Profit before tax	Rs m	65	85	30.5%
Tax	Rs m	14	36	165.5%
Profit after tax	Rs m	52	49	-5.2%
Gross profit margin	%	6.9	7.2
Effective tax rate	%	20.9	42.5
Net profit margin	%	5.3	3.7

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NITIN CASTINGS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 301 million as compared to Rs 224 million in FY22, thereby witnessing an increase of 34.4%.
• Long-term debt down at Rs 3 million as compared to Rs 3 million during FY22, a fall of 10.4%.
• Current assets rose 28% and stood at Rs 686 million, while fixed assets fell 5% and stood at Rs 233 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 919 million as against Rs 781 million during FY22, thereby witnessing a growth of 18%.

NITIN CASTINGS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	552	599	8.5
Current Liabilities	Rs m	224	301	34.4
Long-term Debt	Rs m	3	3	-10.4
Total Liabilities	Rs m	781	919	17.7
Current assets	Rs m	536	686	28.0
Fixed Assets	Rs m	245	233	-5.0
Total Assets	Rs m	781	919	17.7

NITIN CASTINGS Cash Flow Statement Analysis

• NITIN CASTINGS's cash flow from operating activities (CFO) during FY23 stood at Rs 9 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -75 million, an improvement of 388.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 57 million, an improvement of 168% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -9 million from the Rs 17 million net cash flows seen during FY22.

NITIN CASTINGS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	11	9	-15.1%
Cash Flow from Investing Activities	Rs m	-15	-75	-
Cash Flow from Financing Activities	Rs m	21	57	168.3%
Net Cash Flow	Rs m	17	-9	-

Current Valuations for NITIN CASTINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.5, an decline from the EPS of Rs 10.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 245.6, stands at 25.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 15.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	187.8	259.5
TTM Earnings per share	Rs	10.0	9.5
Diluted earnings per share	Rs	10.0	9.5
Price to Cash Flow	x	9.1	15.1
TTM P/E ratio	x	12.6	25.8
Price / Book Value ratio	x	0.9	1.7
Market Cap	Rs m	502	1,008
Dividends per share (Unadj.)	Rs	0.5	0.8

Ratio Analysis for NITIN CASTINGS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY23, from 2.4x during FY22. 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 47.3x during FY23, from 26.8x during FY22. 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 declined and down at 8.2% during FY23, from 9.3% during FY23. 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 14.4% during FY23, from 12.2% during FY22. 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 declined and down at 5.5% during FY23, from 6.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.4	2.3
Debtors’ Days	Days	478	339
Interest coverage	x	26.8	47.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.9	5.5
Return on equity	%	9.3	8.2
Return on capital employed	%	12.2	14.4

To see how NITIN CASTINGS has performed over the last 5 years, please visit here.

NITIN CASTINGS Share Price Performance

Over the last one year, NITIN CASTINGS share price has moved up from Rs 126.9 to Rs 245.6, registering a gain of Rs 118.7 or around 93.6%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for NITIN CASTINGS and quarterly results for NITIN CASTINGS)