NBCC (INDIA) 2023-24 Annual Report Analysis

Mon, 9 Sep

NBCC (INDIA) 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.

NBCC (INDIA) Income Statement Analysis

• Operating income during the year rose 17.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 89.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.2% in FY24 as against 2.0% in FY23.
• Depreciation charges increased by 1.7% and finance costs increased by 9.5% YoY, respectively.
• Other income grew by 12.1% YoY.
• Net profit for the year grew by 49.1% YoY.
• Net profit margins during the year grew from 3.1% in FY23 to 4.0% in FY24.

NBCC (INDIA) Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	88,764	104,326	17.5%
Other income	Rs m	3,969	4,448	12.1%
Total Revenues	Rs m	92,733	108,774	17.3%
Gross profit	Rs m	1,760	3,335	89.5%
Depreciation	Rs m	52	53	1.7%
Interest	Rs m	1,958	2,144	9.5%
Profit before tax	Rs m	3,719	5,585	50.2%
Tax	Rs m	939	1,442	53.5%
Profit after tax	Rs m	2,780	4,144	49.1%
Gross profit margin	%	2.0	3.2
Effective tax rate	%	25.2	25.8
Net profit margin	%	3.1	4.0

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NBCC (INDIA) Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 101 billion as compared to Rs 105 billion in FY23, thereby witnessing an decrease of -3.9%.
• Current assets rose 10% and stood at Rs 118 billion, while fixed assets fell 62% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 125 billion as against Rs 125 billion during FY23, thereby witnessing a fall of 1%.

NBCC (INDIA) Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	19,445	22,256	14.5
Current Liabilities	Rs m	105,010	100,886	-3.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	125,443	124,675	-0.6
Current assets	Rs m	107,528	117,802	9.6
Fixed Assets	Rs m	17,831	6,858	-61.5
Total Assets	Rs m	125,443	124,675	-0.6

NBCC (INDIA) Cash Flow Statement Analysis

• NBCC (INDIA)'s cash flow from operating activities (CFO) during FY24 stood at Rs 731 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 billion from the Rs -2 billion net cash flows seen during FY23.

NBCC (INDIA) 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	-3,741	731	-
Cash Flow from Investing Activities	Rs m	2,723	-2,184	-
Cash Flow from Financing Activities	Rs m	-903	-1,035	-
Net Cash Flow	Rs m	-1,921	-2,488	-

Current Valuations for NBCC (INDIA)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.3, an improvement from the EPS of Rs 1.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 173.3, stands at 70.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.0 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 45.4 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	49.3	58.0
TTM Earnings per share	Rs	1.5	2.3
Diluted earnings per share	Rs	1.5	2.3
Price to Cash Flow	x	22.5	45.4
TTM P/E ratio	x	23.0	70.3
Price / Book Value ratio	x	3.3	8.6
Market Cap	Rs m	63,450	190,350
Dividends per share (Unadj.)	Rs	0.5	0.6

Ratio Analysis for NBCC (INDIA)

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 1.0x 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 3.6x during FY24, from 2.9x 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 18.6% during FY24, from 14.3% 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 34.7% during FY24, from 29.2% 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 5.0% during FY24, from 3.8% 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	1.0	1.2
Debtors’ Days	Days	820	1,015
Interest coverage	x	2.9	3.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.8	5.0
Return on equity	%	14.3	18.6
Return on capital employed	%	29.2	34.7

To see how NBCC (INDIA) has performed over the last 5 years, please visit here.

NBCC (INDIA) Share Price Performance

Over the last one year, NBCC (INDIA) share price has moved up from Rs 59.6 to Rs 173.3, registering a gain of Rs 113.7 or around 190.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,046.8 (down 0.2%). Over the last one year it has moved up from 4,732.6 to 8,046.8, a gain of 3,314 points (up 70.0%).

Overall, the S&P BSE SENSEX is up 23.4% over the year.

(To know more, check out historical annual results for NBCC (INDIA) and quarterly results for NBCC (INDIA))