INDIA NIPPON 2023-24 Annual Report Analysis

Mon, 2 Sep

INDIA NIPPON has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

INDIA NIPPON Income Statement Analysis

• Operating income during the year rose 10.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 25.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.2% in FY24 as against 8.1% in FY23.
• Depreciation charges increased by 3.2% and finance costs decreased by 7.1% YoY, respectively.
• Other income grew by 10.2% YoY.
• Net profit for the year grew by 23.0% YoY.
• Net profit margins during the year grew from 7.3% in FY23 to 8.2% in FY24.

INDIA NIPPON Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,563	7,241	10.3%
Other income	Rs m	226	249	10.2%
Total Revenues	Rs m	6,788	7,490	10.3%
Gross profit	Rs m	529	664	25.5%
Depreciation	Rs m	146	151	3.2%
Interest	Rs m	4	4	-7.1%
Profit before tax	Rs m	604	758	25.4%
Tax	Rs m	122	165	35.2%
Profit after tax	Rs m	482	593	23.0%
Gross profit margin	%	8.1	9.2
Effective tax rate	%	20.2	21.7
Net profit margin	%	7.3	8.2

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INDIA NIPPON Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 40.3%.
• Current assets rose 17% and stood at Rs 4 billion, while fixed assets rose 16% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 17%.

INDIA NIPPON Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,603	6,233	11.2
Current Liabilities	Rs m	1,223	1,715	40.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,186	8,382	16.6
Current assets	Rs m	3,665	4,291	17.1
Fixed Assets	Rs m	3,521	4,091	16.2
Total Assets	Rs m	7,186	8,382	16.6

INDIA NIPPON Cash Flow Statement Analysis

• INDIA NIPPON's cash flow from operating activities (CFO) during FY24 stood at Rs 627 million, an improvement of 10.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -386 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -246 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -5 million from the Rs -107 million net cash flows seen during FY23.

INDIA NIPPON Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	569	627	10.3%
Cash Flow from Investing Activities	Rs m	-457	-386	-
Cash Flow from Financing Activities	Rs m	-219	-246	-
Net Cash Flow	Rs m	-107	-5	-

Current Valuations for INDIA NIPPON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.2, an improvement from the EPS of Rs 21.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 800.2, stands at 26.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 17.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	290.1	320.1
TTM Earnings per share	Rs	21.3	26.2
Diluted earnings per share	Rs	21.3	26.2
Price to Cash Flow	x	11.9	17.4
TTM P/E ratio	x	15.5	26.5
Price / Book Value ratio	x	1.7	2.1
Market Cap	Rs m	9,322	12,916
Dividends per share (Unadj.)	Rs	9.3	10.3

Ratio Analysis for INDIA NIPPON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.5x during FY24, from 3.0x during FY23. 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 195.3x during FY24, from 144.9x during FY23. 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 improved and stood at 9.5% during FY24, from 8.6% during FY24. 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 12.2% during FY24, from 10.9% during FY23. 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 improved and stood at 7.1% during FY24, from 6.8% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	3.0	2.5
Debtors’ Days	Days	664	715
Interest coverage	x	144.9	195.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.8	7.1
Return on equity	%	8.6	9.5
Return on capital employed	%	10.9	12.2

To see how INDIA NIPPON has performed over the last 5 years, please visit here.

INDIA NIPPON Share Price Performance

Over the last one year, INDIA NIPPON share price has moved up from Rs 474.9 to Rs 800.2, registering a gain of Rs 325.3 or around 68.5%.

Overall, the S&P BSE SENSEX is up 26.9% over the year.

(To know more, check out historical annual results for INDIA NIPPON and quarterly results for INDIA NIPPON)