NILKAMAL 2023-24 Annual Report Analysis

Thu, 27 Jun

NILKAMAL 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.

NILKAMAL Income Statement Analysis

• Operating income during the year rose 2.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.5% in FY24 as against 10.2% in FY23.
• Depreciation charges increased by 1.8% and finance costs increased by 0.5% YoY, respectively.
• Other income grew by 20.6% YoY.
• Net profit for the year declined by 8.6% YoY.
• Net profit margins during the year declined from 4.3% in FY23 to 3.8% in FY24.

NILKAMAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	31,309	31,963	2.1%
Other income	Rs m	110	133	20.6%
Total Revenues	Rs m	31,419	32,096	2.2%
Gross profit	Rs m	3,192	3,029	-5.1%
Depreciation	Rs m	1,134	1,154	1.8%
Interest	Rs m	399	401	0.5%
Profit before tax	Rs m	1,770	1,607	-9.2%
Tax	Rs m	430	382	-11.1%
Profit after tax	Rs m	1,340	1,224	-8.6%
Gross profit margin	%	10.2	9.5
Effective tax rate	%	24.3	23.8
Net profit margin	%	4.3	3.8

Don't Miss: Key Information for Long-term Investors

NILKAMAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 21.9%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY23, a fall of 21.1%.
• Current assets rose 6% and stood at Rs 13 billion, while fixed assets rose 8% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 22 billion as against Rs 21 billion during FY23, thereby witnessing a growth of 7%.

NILKAMAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,142	14,099	7.3
Current Liabilities	Rs m	3,714	4,526	21.9
Long-term Debt	Rs m	1,603	1,266	-21.1
Total Liabilities	Rs m	20,754	22,208	7.0
Current assets	Rs m	11,883	12,641	6.4
Fixed Assets	Rs m	8,871	9,567	7.9
Total Assets	Rs m	20,754	22,208	7.0

NILKAMAL Cash Flow Statement Analysis

• NILKAMAL's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 31.6% 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 -317 million, an improvement of 56% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 620 million from the Rs -454 million net cash flows seen during FY23.

NILKAMAL 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	1,900	2,501	31.6%
Cash Flow from Investing Activities	Rs m	-1,646	-1,603	-
Cash Flow from Financing Activities	Rs m	-715	-317	-
Net Cash Flow	Rs m	-454	620	-

Current Valuations for NILKAMAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 82.1, an decline from the EPS of Rs 89.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,012.2, stands at 26.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 14.1 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	2,098.4	2,142.3
TTM Earnings per share	Rs	89.8	82.1
Diluted earnings per share	Rs	89.8	82.0
Price to Cash Flow	x	10.6	14.1
TTM P/E ratio	x	20.7	26.5
Price / Book Value ratio	x	2.3	2.4
Market Cap	Rs m	30,240	33,576
Dividends per share (Unadj.)	Rs	20.0	20.0

Ratio Analysis for NILKAMAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.8x during FY24, from 3.2x 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 5.0x during FY24, from 5.4x 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 declined and down at 8.7% during FY24, from 10.2% 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 declined and down at 13.1% during FY24, from 14.7% 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 7.3% during FY24, from 8.4% 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	3.2	2.8
Debtors’ Days	Days	505	529
Interest coverage	x	5.4	5.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.4	7.3
Return on equity	%	10.2	8.7
Return on capital employed	%	14.7	13.1

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

NILKAMAL Share Price Performance

Over the last one year, NILKAMAL share price has moved down from Rs 2,407.8 to Rs 0.0, registering a loss of Rs 2,407.8 or around 100.0%.

Overall, the NIFTY 50 is down 0.0% over the year.

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