N C L IND. 2023-24 Annual Report Analysis

Mon, 9 Sep

N C L IND. 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.

N C L IND. Income Statement Analysis

• Operating income during the year rose 14.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.6% in FY24 as against 7.3% in FY23.
• Depreciation charges increased by 14.0% and finance costs decreased by 10.3% YoY, respectively.
• Other income grew by 40.7% YoY.
• Net profit for the year grew by 110.5% YoY.
• Net profit margins during the year grew from 2.2% in FY23 to 4.0% in FY24.

N C L IND. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,445	23,320	14.1%
Other income	Rs m	188	265	40.7%
Total Revenues	Rs m	20,633	23,584	14.3%
Gross profit	Rs m	1,485	2,004	34.9%
Depreciation	Rs m	492	561	14.0%
Interest	Rs m	269	241	-10.3%
Profit before tax	Rs m	912	1,467	60.8%
Tax	Rs m	469	534	13.8%
Profit after tax	Rs m	443	932	110.5%
Gross profit margin	%	7.3	8.6
Effective tax rate	%	51.5	36.4
Net profit margin	%	2.2	4.0

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N C L IND. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 1.0%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY23, a fall of 29.7%.
• Current assets rose 5% and stood at Rs 5 billion, while fixed assets rose 0% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 16 billion as against Rs 15 billion during FY23, thereby witnessing a growth of 2%.

N C L IND. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,699	8,491	10.3
Current Liabilities	Rs m	3,592	3,630	1.0
Long-term Debt	Rs m	2,075	1,459	-29.7
Total Liabilities	Rs m	15,484	15,724	1.6
Current assets	Rs m	4,541	4,764	4.9
Fixed Assets	Rs m	10,943	10,960	0.2
Total Assets	Rs m	15,484	15,724	1.6

N C L IND. Cash Flow Statement Analysis

• N C L IND.'s cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -591 million 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 134 million from the Rs 292 million net cash flows seen during FY23.

N C L IND. 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	2,060	1,828	-11.3%
Cash Flow from Investing Activities	Rs m	-940	-591	-
Cash Flow from Financing Activities	Rs m	-828	-1,103	-
Net Cash Flow	Rs m	292	134	-54.2%

Current Valuations for N C L IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.6, an improvement from the EPS of Rs 9.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 214.9, stands at 13.0 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 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 6.5 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	452.0	515.6
TTM Earnings per share	Rs	9.8	20.6
Diluted earnings per share	Rs	9.8	20.6
Price to Cash Flow	x	8.6	6.5
TTM P/E ratio	x	18.2	13.0
Price / Book Value ratio	x	1.1	1.2
Market Cap	Rs m	8,276	9,768
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for N C L IND.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x 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 7.1x during FY24, from 4.4x 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 11.0% during FY24, from 5.8% 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 17.2% during FY24, from 12.1% 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 7.5% during FY24, from 4.6% 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	1.3
Debtors’ Days	Days	253	223
Interest coverage	x	4.4	7.1
Debt to equity ratio	x	0.3	0.2
Return on assets	%	4.6	7.5
Return on equity	%	5.8	11.0
Return on capital employed	%	12.1	17.2

To see how N C L IND. has performed over the last 5 years, please visit here.

N C L IND. Share Price Performance

Over the last one year, N C L IND. share price has moved down from Rs 230.2 to Rs 214.9, registering a loss of Rs 15.3 or around 6.6%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

(To know more, check out historical annual results for N C L IND. and quarterly results for N C L IND.)