NATIONAL FITTINGS 2022-23 Annual Report Analysis

Mon, 14 Aug

NATIONAL FITTINGS 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.

NATIONAL FITTINGS Income Statement Analysis

• Operating income during the year rose 29.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 120.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.1% in FY23 as against 6.6% in FY22.
• Depreciation charges increased by 18.7% and finance costs decreased by 5.0% YoY, respectively.
• Other income grew by 11.1% YoY.
• Net profit for the year grew by 226.9% YoY.
• Net profit margins during the year grew from 2.0% in FY22 to 5.1% in FY23.

NATIONAL FITTINGS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	663	860	29.7%
Other income	Rs m	13	15	11.1%
Total Revenues	Rs m	676	875	29.4%
Gross profit	Rs m	44	96	120.0%
Depreciation	Rs m	29	34	18.7%
Interest	Rs m	11	11	-5.0%
Profit before tax	Rs m	17	66	292.5%
Tax	Rs m	3	22	559.4%
Profit after tax	Rs m	13	44	226.9%
Gross profit margin	%	6.6	11.1
Effective tax rate	%	19.7	33.1
Net profit margin	%	2.0	5.1

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NATIONAL FITTINGS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 276 million as compared to Rs 264 million in FY22, thereby witnessing an increase of 4.5%.
• Long-term debt down at Rs 27 million as compared to Rs 36 million during FY22, a fall of 26.0%.
• Current assets rose 6% and stood at Rs 366 million, while fixed assets rose 4% and stood at Rs 526 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 892 million as against Rs 850 million during FY22, thereby witnessing a growth of 5%.

NATIONAL FITTINGS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	516	549	6.5
Current Liabilities	Rs m	264	276	4.5
Long-term Debt	Rs m	36	27	-26.0
Total Liabilities	Rs m	850	892	5.0
Current assets	Rs m	346	366	5.6
Fixed Assets	Rs m	504	526	4.5
Total Assets	Rs m	850	892	5.0

NATIONAL FITTINGS Cash Flow Statement Analysis

• NATIONAL FITTINGS's cash flow from operating activities (CFO) during FY23 stood at Rs 57 million, an improvement of 48.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -54 million, an improvement of 31.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 0 million, an improvement of 93% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 million from the Rs -7 million net cash flows seen during FY22.

NATIONAL FITTINGS 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	38	57	48.1%
Cash Flow from Investing Activities	Rs m	-41	-54	-
Cash Flow from Financing Activities	Rs m	-5	0	-
Net Cash Flow	Rs m	-7	3	-

Current Valuations for NATIONAL FITTINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.8, an improvement from the EPS of Rs 1.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 122.0, stands at 25.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.1 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	73.0	94.7
TTM Earnings per share	Rs	1.5	4.8
Diluted earnings per share	Rs	1.5	4.8
Price to Cash Flow	x	12.3	7.1
TTM P/E ratio	x	23.9	25.2
Price / Book Value ratio	x	1.0	1.0
Market Cap	Rs m	510	555
Dividends per share (Unadj.)	Rs	1.0	1.5

Ratio Analysis for NATIONAL FITTINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.3x 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 improved and stood at 7.2x during FY23, from 2.5x 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 improved and stood at 8.0% during FY23, from 2.6% 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 13.2% during FY23, from 5.0% 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 improved and stood at 6.1% during FY23, from 2.9% 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	1.3	1.3
Debtors’ Days	Days	264	241
Interest coverage	x	2.5	7.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	2.9	6.1
Return on equity	%	2.6	8.0
Return on capital employed	%	5.0	13.2

To see how NATIONAL FITTINGS has performed over the last 5 years, please visit here.

NATIONAL FITTINGS Share Price Performance

Over the last one year, NATIONAL FITTINGS share price has moved up from Rs 50.3 to Rs 122.0, registering a gain of Rs 71.7 or around 142.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,551.6 (down 1.5%). Over the last one year it has moved up from 19,240.0 to 21,551.6, a gain of 2,312 points (up 12.0%).

Overall, the S&P BSE SENSEX is up 10.5% over the year.

(To know more, check out historical annual results for NATIONAL FITTINGS and quarterly results for NATIONAL FITTINGS)