NAVKAR CORP. 2023-24 Annual Report Analysis

Tue, 3 Sep

NAVKAR CORP. 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.

NAVKAR CORP. Income Statement Analysis

• Operating income during the year fell 1.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 41.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.2% in FY24 as against 23.8% in FY23.
• Depreciation charges increased by 55.7% and finance costs decreased by 28.3% YoY, respectively.
• Other income declined by 37.7% YoY.
• Net profit for the year declined by 92.3% YoY.
• Net profit margins during the year declined from 16.5% in FY23 to 1.3% in FY24.

NAVKAR CORP. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,415	4,349	-1.5%
Other income	Rs m	97	60	-37.7%
Total Revenues	Rs m	4,512	4,409	-2.3%
Gross profit	Rs m	1,050	618	-41.2%
Depreciation	Rs m	268	417	55.7%
Interest	Rs m	196	141	-28.3%
Profit before tax	Rs m	682	120	-82.4%
Tax	Rs m	-48	64	NA
Profit after tax	Rs m	730	56	-92.3%
Gross profit margin	%	23.8	14.2
Effective tax rate	%	-7.0	53.4
Net profit margin	%	16.5	1.3

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NAVKAR CORP. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 570 million in FY23, thereby witnessing an increase of 82.2%.
• Long-term debt stood at Rs 1 billion as compared to Rs 439 million during FY23, a growth of 213.5%.
• Current assets fell 5% and stood at Rs 2 billion, while fixed assets rose 9% and stood at Rs 21 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 23 billion as against Rs 21 billion during FY23, thereby witnessing a growth of 8%.

NAVKAR CORP. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	19,765	19,745	-0.1
Current Liabilities	Rs m	570	1,038	82.2
Long-term Debt	Rs m	439	1,377	213.5
Total Liabilities	Rs m	21,410	23,019	7.5
Current assets	Rs m	2,379	2,257	-5.1
Fixed Assets	Rs m	19,032	20,762	9.1
Total Assets	Rs m	21,410	23,019	7.5

NAVKAR CORP. Cash Flow Statement Analysis

• NAVKAR CORP.'s cash flow from operating activities (CFO) during FY24 stood at Rs 619 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 123% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -860 million from the Rs 885 million net cash flows seen during FY23.

NAVKAR CORP. 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	1,256	619	-50.7%
Cash Flow from Investing Activities	Rs m	6,483	-3,023	-
Cash Flow from Financing Activities	Rs m	-6,854	1,544	-
Net Cash Flow	Rs m	885	-860	-

Current Valuations for NAVKAR CORP.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an decline from the EPS of Rs 4.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 147.1, stands at -197.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 5.1 times.
• The company's price to cash flow (P/CF) ratio stood at 28.3 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	29.3	28.9
TTM Earnings per share	Rs	4.8	0.4
Diluted earnings per share	Rs	4.8	0.4
Price to Cash Flow	x	8.0	28.3
TTM P/E ratio	x	10.9	-197.6
Price / Book Value ratio	x	0.5	0.7
Market Cap	Rs m	9,204	13,389
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NAVKAR CORP.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY24, from 4.2x 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 deteriorated and stood at 1.9x during FY24, from 4.5x 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 0.3% during FY24, from 3.7% 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 1.2% during FY24, from 4.3% 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 declined and down at 0.9% during FY24, from 4.3% 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	4.2	2.2
Debtors’ Days	Days	247	638
Interest coverage	x	4.5	1.9
Debt to equity ratio	x	0.0	0.1
Return on assets	%	4.3	0.9
Return on equity	%	3.7	0.3
Return on capital employed	%	4.3	1.2

To see how NAVKAR CORP. has performed over the last 5 years, please visit here.

NAVKAR CORP. Share Price Performance

Over the last one year, NAVKAR CORP. share price has moved up from Rs 58.8 to Rs 147.1, registering a gain of Rs 88.3 or around 150.1%.

Overall, the S&P BSE SENSEX is up 26.8% over the year.

(To know more, check out historical annual results for NAVKAR CORP. and quarterly results for NAVKAR CORP.)