NITTA GELATIN 2023-24 Annual Report Analysis

Thu, 18 Jul

NITTA GELATIN 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.

NITTA GELATIN Income Statement Analysis

• Operating income during the year fell 5.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.1% in FY24 as against 20.6% in FY23.
• Depreciation charges increased by 7.2% and finance costs decreased by 28.9% YoY, respectively.
• Other income grew by 1268.1% YoY.
• Net profit for the year grew by 13.8% YoY.
• Net profit margins during the year grew from 13.1% in FY23 to 15.8% in FY24.

NITTA GELATIN Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,654	5,327	-5.8%
Other income	Rs m	8	112	1,268.1%
Total Revenues	Rs m	5,662	5,439	-3.9%
Gross profit	Rs m	1,165	1,233	5.8%
Depreciation	Rs m	141	151	7.2%
Interest	Rs m	42	30	-28.9%
Profit before tax	Rs m	991	1,164	17.5%
Tax	Rs m	252	323	28.2%
Profit after tax	Rs m	739	841	13.8%
Gross profit margin	%	20.6	23.1
Effective tax rate	%	25.4	27.7
Net profit margin	%	13.1	15.8

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NITTA GELATIN Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 633 million as compared to Rs 827 million in FY23, thereby witnessing an decrease of -23.4%.
• Long-term debt down at Rs 41 million as compared to Rs 69 million during FY23, a fall of 40.3%.
• Current assets rose 22% and stood at Rs 3 billion, while fixed assets rose 4% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 15%.

NITTA GELATIN Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,676	3,434	28.3
Current Liabilities	Rs m	827	633	-23.4
Long-term Debt	Rs m	69	41	-40.3
Total Liabilities	Rs m	3,671	4,227	15.2
Current assets	Rs m	2,211	2,704	22.3
Fixed Assets	Rs m	1,459	1,523	4.4
Total Assets	Rs m	3,671	4,227	15.2

NITTA GELATIN Cash Flow Statement Analysis

• NITTA GELATIN's cash flow from operating activities (CFO) during FY24 stood at Rs 941 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -539 million, an improvement of 194.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -359 million, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 42 million from the Rs 281 million net cash flows seen during FY23.

NITTA GELATIN 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	1,010	941	-6.9%
Cash Flow from Investing Activities	Rs m	-183	-539	-
Cash Flow from Financing Activities	Rs m	-546	-359	-
Net Cash Flow	Rs m	281	42	-84.9%

Current Valuations for NITTA GELATIN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 92.6, an improvement from the EPS of Rs 81.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 799.0, stands at 8.6 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 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 8.6 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	622.6	586.7
TTM Earnings per share	Rs	81.4	92.6
Diluted earnings per share	Rs	81.4	92.6
Price to Cash Flow	x	9.2	8.6
TTM P/E ratio	x	10.9	8.6
Price / Book Value ratio	x	2.1	2.5
Market Cap	Rs m	5,666	8,540
Dividends per share (Unadj.)	Rs	7.5	6.0

Ratio Analysis for NITTA GELATIN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.3x during FY24, from 2.7x 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 40.3x during FY24, from 24.8x 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 declined and down at 24.5% during FY24, from 27.6% 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 declined and down at 34.3% during FY24, from 37.6% 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 declined and down at 20.6% during FY24, from 21.3% 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	2.7	4.3
Debtors’ Days	Days	567	585
Interest coverage	x	24.8	40.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.3	20.6
Return on equity	%	27.6	24.5
Return on capital employed	%	37.6	34.3

To see how NITTA GELATIN has performed over the last 5 years, please visit here.

NITTA GELATIN Share Price Performance

Over the last one year, NITTA GELATIN share price has moved up from Rs 729.6 to Rs 799.0, registering a gain of Rs 69.5 or around 9.5%.

Overall, the S&P BSE SENSEX is up 21.3% over the year.

(To know more, check out historical annual results for NITTA GELATIN and quarterly results for NITTA GELATIN)