NANDAN DENIM 2023-24 Annual Report Analysis

Fri, 16 Aug

NANDAN DENIM 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.

NANDAN DENIM Income Statement Analysis

• Operating income during the year fell 0.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.9% in FY24 as against 4.1% in FY23.
• Depreciation charges increased by 9.1% and finance costs decreased by 11.5% YoY, respectively.
• Other income grew by 197.8% YoY.
• Net profit for the year grew by 8353.0% YoY.
• Net profit margins during the year grew from 0.0% in FY23 to 2.2% in FY24.

NANDAN DENIM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,268	20,101	-0.8%
Other income	Rs m	116	346	197.8%
Total Revenues	Rs m	20,384	20,447	0.3%
Gross profit	Rs m	841	1,183	40.7%
Depreciation	Rs m	372	406	9.1%
Interest	Rs m	534	472	-11.5%
Profit before tax	Rs m	51	651	1,165.7%
Tax	Rs m	46	202	336.8%
Profit after tax	Rs m	5	450	8,353.0%
Gross profit margin	%	4.1	5.9
Effective tax rate	%	89.7	30.9
Net profit margin	%	0.0	2.2

Don't Miss: Key Information for Long-term Investors

NANDAN DENIM Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -16.7%.
• Long-term debt down at Rs 963 million as compared to Rs 2 billion during FY23, a fall of 40.8%.
• Current assets fell 8% and stood at Rs 7 billion, while fixed assets fell 5% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 13 billion during FY23, thereby witnessing a fall of 7%.

NANDAN DENIM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,401	5,852	8.4
Current Liabilities	Rs m	5,441	4,533	-16.7
Long-term Debt	Rs m	1,628	963	-40.8
Total Liabilities	Rs m	12,861	12,009	-6.6
Current assets	Rs m	7,196	6,625	-7.9
Fixed Assets	Rs m	5,665	5,384	-5.0
Total Assets	Rs m	12,861	12,009	-6.6

NANDAN DENIM Cash Flow Statement Analysis

• NANDAN DENIM's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 63.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -498 million, an improvement of 136.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 121 million from the Rs -255 million net cash flows seen during FY23.

NANDAN DENIM 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	1,410	2,304	63.5%
Cash Flow from Investing Activities	Rs m	-211	-498	-
Cash Flow from Financing Activities	Rs m	-1,454	-1,685	-
Net Cash Flow	Rs m	-255	121	-

Current Valuations for NANDAN DENIM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an improvement from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 50.4, stands at 16.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 4.7 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	140.6	139.4
TTM Earnings per share	Rs	0.0	3.1
Diluted earnings per share	Rs	0.0	3.1
Price to Cash Flow	x	6.0	4.7
TTM P/E ratio	x	421.1	16.1
Price / Book Value ratio	x	1.1	0.7
Market Cap	Rs m	6,120	4,040
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NANDAN DENIM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.3x 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 2.4x during FY24, from 1.1x 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 7.7% during FY24, from 0.1% 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 16.5% during FY24, from 8.3% 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 7.7% during FY24, from 4.2% 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	1.3	1.5
Debtors’ Days	Days	636	675
Interest coverage	x	1.1	2.4
Debt to equity ratio	x	0.3	0.2
Return on assets	%	4.2	7.7
Return on equity	%	0.1	7.7
Return on capital employed	%	8.3	16.5

To see how NANDAN DENIM has performed over the last 5 years, please visit here.

NANDAN DENIM Share Price Performance

Over the last one year, NANDAN DENIM share price has moved up from Rs 19.4 to Rs 50.4, registering a gain of Rs 31.0 or around 159.9%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for NANDAN DENIM and quarterly results for NANDAN DENIM)