NATIONAL OXYGEN 2022-23 Annual Report Analysis

Mon, 25 Sep

NATIONAL OXYGEN 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 OXYGEN Income Statement Analysis

• Operating income during the year fell 6.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 67.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.8% in FY23 as against 22.6% in FY22.
• Depreciation charges increased by 5.6% and finance costs decreased by 16.7% YoY, respectively.
• Other income declined by 59.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 15.1% in FY22 to 1.7% in FY23.

NATIONAL OXYGEN Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	506	471	-6.9%
Other income	Rs m	14	6	-59.1%
Total Revenues	Rs m	520	477	-8.4%
Gross profit	Rs m	114	37	-67.8%
Depreciation	Rs m	31	33	5.6%
Interest	Rs m	22	18	-16.7%
Profit before tax	Rs m	76	-8	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	76	-8	NA
Gross profit margin	%	22.6	7.8
Effective tax rate	%	0.0	0.0
Net profit margin	%	15.1	-1.7

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NATIONAL OXYGEN Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 71 million as compared to Rs 73 million in FY22, thereby witnessing an decrease of -2.7%.
• Long-term debt down at Rs 266 million as compared to Rs 304 million during FY22, a fall of 12.5%.
• Current assets fell 24% and stood at Rs 108 million, while fixed assets fell 6% and stood at Rs 241 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 349 million as against Rs 398 million during FY22, thereby witnessing a fall of 12%.

NATIONAL OXYGEN Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	0	-9	NA
Current Liabilities	Rs m	73	71	-2.7
Long-term Debt	Rs m	304	266	-12.5
Total Liabilities	Rs m	398	349	-12.3
Current assets	Rs m	142	108	-23.8
Fixed Assets	Rs m	257	241	-5.9
Total Assets	Rs m	398	349	-12.3

NATIONAL OXYGEN Cash Flow Statement Analysis

• NATIONAL OXYGEN's cash flow from operating activities (CFO) during FY23 stood at Rs 22 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -6 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -59 million, an improvement of 9% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -43 million from the Rs 55 million net cash flows seen during FY22.

NATIONAL OXYGEN 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	116	22	-80.8%
Cash Flow from Investing Activities	Rs m	4	-6	-
Cash Flow from Financing Activities	Rs m	-65	-59	-
Net Cash Flow	Rs m	55	-43	-

Current Valuations for NATIONAL OXYGEN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.6, an decline from the EPS of Rs 15.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 124.9, stands at -43.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -64.3 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 24.0 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	105.4	98.2
TTM Earnings per share	Rs	15.9	-1.6
Diluted earnings per share	Rs	15.9	-1.6
Price to Cash Flow	x	3.8	24.0
TTM P/E ratio	x	5.4	-43.1
Price / Book Value ratio	x	4,165.0	-63.9
Market Cap	Rs m	656	595
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NATIONAL OXYGEN

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 1.9x 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 deteriorated and stood at 0.6x during FY23, from 4.5x 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 declined and down at 84.9% during FY23, from 47,671.3% 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 declined and down at 3.9% during FY23, from 32.2% 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 declined and down at 2.9% during FY23, from 24.6% 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	1.9	1.5
Debtors’ Days	Days	364	414
Interest coverage	x	4.5	0.6
Debt to equity ratio	x	1,898.0	-28.5
Return on assets	%	24.6	2.9
Return on equity	%	47,671.3	84.9
Return on capital employed	%	32.2	3.9

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

NATIONAL OXYGEN Share Price Performance

Over the last one year, NATIONAL OXYGEN share price has moved down from Rs 141.6 to Rs 124.9, registering a loss of Rs 16.7 or around 11.8%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 18,960.4 (down 0.2%). Over the last one year it has moved down from 19,056.8 to 18,960.4, a loss of 96 points (down 0.5%).

Overall, the S&P BSE SENSEX is up 10.9% over the year.

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