NGL FINE CHM 2023-24 Annual Report Analysis

Mon, 5 Aug

NGL FINE CHM 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.

NGL FINE CHM Income Statement Analysis

• Operating income during the year rose 21.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 53.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.9% in FY24 as against 12.6% in FY23.
• Depreciation charges increased by 3.1% and finance costs decreased by 1.3% YoY, respectively.
• Other income grew by 155.5% YoY.
• Net profit for the year grew by 101.6% YoY.
• Net profit margins during the year grew from 7.4% in FY23 to 12.2% in FY24.

NGL FINE CHM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,781	3,387	21.8%
Other income	Rs m	55	141	155.5%
Total Revenues	Rs m	2,836	3,528	24.4%
Gross profit	Rs m	350	537	53.7%
Depreciation	Rs m	113	116	3.1%
Interest	Rs m	18	18	-1.3%
Profit before tax	Rs m	274	544	98.9%
Tax	Rs m	69	131	90.8%
Profit after tax	Rs m	205	413	101.6%
Gross profit margin	%	12.6	15.9
Effective tax rate	%	25.1	24.1
Net profit margin	%	7.4	12.2

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NGL FINE CHM Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 866 million as compared to Rs 583 million in FY23, thereby witnessing an increase of 48.5%.
• Long-term debt down at Rs 7 million as compared to Rs 21 million during FY23, a fall of 64.1%.
• Current assets rose 31% and stood at Rs 2 billion, while fixed assets rose 15% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 24%.

NGL FINE CHM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,225	2,626	18.0
Current Liabilities	Rs m	583	866	48.5
Long-term Debt	Rs m	21	7	-64.1
Total Liabilities	Rs m	2,871	3,555	23.8
Current assets	Rs m	1,627	2,127	30.7
Fixed Assets	Rs m	1,244	1,429	14.8
Total Assets	Rs m	2,871	3,555	23.8

NGL FINE CHM Cash Flow Statement Analysis

• NGL FINE CHM's cash flow from operating activities (CFO) during FY24 stood at Rs 205 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -268 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -11 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -74 million from the Rs 72 million net cash flows seen during FY23.

NGL FINE CHM 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	353	205	-42.0%
Cash Flow from Investing Activities	Rs m	-270	-268	-
Cash Flow from Financing Activities	Rs m	-11	-11	-
Net Cash Flow	Rs m	72	-74	-

Current Valuations for NGL FINE CHM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 66.9, an improvement from the EPS of Rs 33.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,432.5, stands at 36.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.7 times, while the price to sales ratio stands at 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at 21.2 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	450.0	548.0
TTM Earnings per share	Rs	33.2	66.9
Diluted earnings per share	Rs	33.2	66.9
Price to Cash Flow	x	23.3	21.2
TTM P/E ratio	x	35.2	36.3
Price / Book Value ratio	x	5.2	4.3
Market Cap	Rs m	11,523	11,232
Dividends per share (Unadj.)	Rs	1.8	1.8

Ratio Analysis for NGL FINE CHM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.5x during FY24, from 2.8x 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 31.1x during FY24, from 15.9x 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 15.7% during FY24, from 9.2% 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 21.3% during FY24, from 13.0% 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 12.1% during FY24, from 7.8% 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	2.8	2.5
Debtors’ Days	Days	865	966
Interest coverage	x	15.9	31.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.8	12.1
Return on equity	%	9.2	15.7
Return on capital employed	%	13.0	21.3

To see how NGL FINE CHM has performed over the last 5 years, please visit here.

NGL FINE CHM Share Price Performance

Over the last one year, NGL FINE CHM share price has moved up from Rs 2,007.4 to Rs 2,432.5, registering a gain of Rs 425.1 or around 21.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 40,058.1 (down 1.8%). Over the last one year it has moved up from 27,852.0 to 40,058.1, a gain of 12,206 points (up 43.8%).

Overall, the S&P BSE SENSEX is up 18.6% over the year.

(To know more, check out historical annual results for NGL FINE CHM and quarterly results for NGL FINE CHM)