NIBE LIMITED 2023-24 Annual Report Analysis

Tue, 10 Sep

NIBE LIMITED 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.

NIBE LIMITED Income Statement Analysis

• Operating income during the year rose 164.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 269.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.9% in FY24 as against 8.5% in FY23.
• Depreciation charges increased by 66.6% and finance costs increased by 26.9% YoY, respectively.
• Other income grew by 439.9% YoY.
• Net profit for the year grew by 1284.7% YoY.
• Net profit margins during the year grew from 1.5% in FY23 to 7.9% in FY24.

NIBE LIMITED Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,053	2,790	164.9%
Other income	Rs m	12	62	439.9%
Total Revenues	Rs m	1,065	2,852	167.9%
Gross profit	Rs m	90	333	269.9%
Depreciation	Rs m	35	59	66.6%
Interest	Rs m	33	42	26.9%
Profit before tax	Rs m	33	294	792.7%
Tax	Rs m	17	73	332.0%
Profit after tax	Rs m	16	221	1,284.7%
Gross profit margin	%	8.5	11.9
Effective tax rate	%	51.6	25.0
Net profit margin	%	1.5	7.9

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NIBE LIMITED Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 597 million as compared to Rs 321 million in FY23, thereby witnessing an increase of 85.9%.
• Long-term debt stood at Rs 592 million as compared to Rs 392 million during FY23, a growth of 50.8%.
• Current assets rose 65% and stood at Rs 1 billion, while fixed assets rose 114% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 90%.

NIBE LIMITED Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	639	1,537	140.7
Current Liabilities	Rs m	321	597	85.9
Long-term Debt	Rs m	392	592	50.8
Total Liabilities	Rs m	1,532	2,906	89.8
Current assets	Rs m	746	1,228	64.5
Fixed Assets	Rs m	785	1,678	113.7
Total Assets	Rs m	1,532	2,906	89.8

NIBE LIMITED Cash Flow Statement Analysis

• NIBE LIMITED's cash flow from operating activities (CFO) during FY24 stood at Rs 54 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 87.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 6% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 17 million from the Rs 86 million net cash flows seen during FY23.

NIBE LIMITED 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	-311	54	-
Cash Flow from Investing Activities	Rs m	-560	-1,053	-
Cash Flow from Financing Activities	Rs m	957	1,016	6.2%
Net Cash Flow	Rs m	86	17	-79.6%

Current Valuations for NIBE LIMITED

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.8, an improvement from the EPS of Rs 1.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,039.4, stands at 114.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.0 times, while the price to sales ratio stands at 9.6 times.
• The company's price to cash flow (P/CF) ratio stood at 49.1 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	88.8	212.5
TTM Earnings per share	Rs	1.3	16.8
Diluted earnings per share	Rs	1.1	15.4
Price to Cash Flow	x	101.8	49.1
TTM P/E ratio	x	348.0	114.3
Price / Book Value ratio	x	5.6	8.9
Market Cap	Rs m	3,603	13,705
Dividends per share (Unadj.)	Rs	0.1	1.0

Ratio Analysis for NIBE LIMITED

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY24, from 2.3x 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 8.0x during FY24, from 2.0x 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 14.3% during FY24, from 2.5% 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 15.8% during FY24, from 6.4% 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 9.0% during FY24, from 3.2% 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	2.3	2.1
Debtors’ Days	Days	1,231	503
Interest coverage	x	2.0	8.0
Debt to equity ratio	x	0.6	0.4
Return on assets	%	3.2	9.0
Return on equity	%	2.5	14.3
Return on capital employed	%	6.4	15.8

To see how NIBE LIMITED has performed over the last 5 years, please visit here.

NIBE LIMITED Share Price Performance

Over the last one year, NIBE LIMITED share price has moved up from Rs 500.6 to Rs 2,039.4, registering a gain of Rs 1,538.8 or around 307.4%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for NIBE LIMITED and quarterly results for NIBE LIMITED)