NIHAR INFO GLOBAL 2022-23 Annual Report Analysis

Tue, 20 Jun

NIHAR INFO GLOBAL 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.

NIHAR INFO GLOBAL Income Statement Analysis

• Operating income during the year fell 44.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 45.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.5% in FY23 as against 5.7% in FY22.
• Depreciation charges increased by 22.2% and finance costs increased by 6.0% YoY, respectively.
• Other income grew by 0.0% YoY.
• Net profit for the year declined by 72.9% YoY.
• Net profit margins during the year declined from 3.4% in FY22 to 1.7% in FY23.

NIHAR INFO GLOBAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	95	53	-44.4%
Other income	Rs m	0	0	0.0%
Total Revenues	Rs m	95	53	-44.3%
Gross profit	Rs m	5	3	-45.8%
Depreciation	Rs m	0	0	22.2%
Interest	Rs m	2	2	6.0%
Profit before tax	Rs m	4	1	-68.3%
Tax	Rs m	0	0	-27.0%
Profit after tax	Rs m	3	1	-72.9%
Gross profit margin	%	5.7	5.5
Effective tax rate	%	10.2	23.5
Net profit margin	%	3.4	1.7

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NIHAR INFO GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 21 million as compared to Rs 31 million in FY22, thereby witnessing an decrease of -31.5%.
• Long-term debt down at Rs 0 million as compared to Rs 4 million during FY22, a fall of 97.6%.
• Current assets rose 14% and stood at Rs 79 million, while fixed assets fell 0% and stood at Rs 75 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 154 million as against Rs 145 million during FY22, thereby witnessing a growth of 7%.

NIHAR INFO GLOBAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	110	133	21.2
Current Liabilities	Rs m	31	21	-31.5
Long-term Debt	Rs m	4	0	-97.6
Total Liabilities	Rs m	145	154	6.6
Current assets	Rs m	70	79	13.9
Fixed Assets	Rs m	75	75	-0.2
Total Assets	Rs m	145	154	6.6

NIHAR INFO GLOBAL Cash Flow Statement Analysis

• NIHAR INFO GLOBAL's cash flow from operating activities (CFO) during FY23 stood at Rs -8 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 0 million, an improvement of 0.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 18 million, an improvement of 1,364% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 10 million from the Rs 0 million net cash flows seen during FY22.

NIHAR INFO GLOBAL 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	1	-8	-
Cash Flow from Investing Activities	Rs m	0	0	-
Cash Flow from Financing Activities	Rs m	-1	18	-
Net Cash Flow	Rs m	0	10	102,700.0%

Current Valuations for NIHAR INFO GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an decline from the EPS of Rs 0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7.0, stands at 83.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 112.0 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	11.7	5.1
TTM Earnings per share	Rs	0.4	0.1
Diluted earnings per share	Rs	0.3	0.1
Price to Cash Flow	x	37.2	112.0
TTM P/E ratio	x	31.1	83.7
Price / Book Value ratio	x	1.0	0.8
Market Cap	Rs m	108	111
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NIHAR INFO GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.8x during FY23, from 2.3x 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 deteriorated and stood at 1.6x during FY23, from 3.2x 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 0.7% during FY23, from 3.0% 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 declined and down at 2.2% during FY23, from 4.6% 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 1.7% during FY23, from 3.4% 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	2.3	3.8
Debtors’ Days	Days	197,152	359,412
Interest coverage	x	3.2	1.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.4	1.7
Return on equity	%	3.0	0.7
Return on capital employed	%	4.6	2.2

To see how NIHAR INFO GLOBAL has performed over the last 5 years, please visit here.

NIHAR INFO GLOBAL Share Price Performance

Over the last one year, NIHAR INFO GLOBAL share price has moved down from Rs 9.3 to Rs 7.0, registering a loss of Rs 2.3 or around 24.7%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, check out historical annual results for NIHAR INFO GLOBAL and quarterly results for NIHAR INFO GLOBAL)