NITCO 2023-24 Annual Report Analysis

Tue, 10 Sep

NITCO 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.

NITCO Income Statement Analysis

• Operating income during the year fell 15.2% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 13.2% in FY24 as against 13.9% in FY23.
• Depreciation charges decreased by 0.3% and finance costs increased by 30.2% YoY, respectively.
• Other income grew by 6.9% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 39.4% in FY23 to 50.1% in FY24.

NITCO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,837	3,252	-15.2%
Other income	Rs m	45	49	6.9%
Total Revenues	Rs m	3,882	3,301	-15.0%
Gross profit	Rs m	-532	-429	NA
Depreciation	Rs m	293	292	-0.3%
Interest	Rs m	734	955	30.2%
Profit before tax	Rs m	-1,512	-1,627	NA
Tax	Rs m	0	3	3,312.5%
Profit after tax	Rs m	-1,513	-1,630	NA
Gross profit margin	%	-13.9	-13.2
Effective tax rate	%	0.0	-0.2
Net profit margin	%	-39.4	-50.1

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

NITCO Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 10 billion as compared to Rs 9 billion in FY23, thereby witnessing an increase of 8.1%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY23, a fall of 0.0%.
• Current assets fell 15% and stood at Rs 3 billion, while fixed assets fell 7% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 8 billion during FY23, thereby witnessing a fall of 11%.

NITCO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-3,493	-5,122	NA
Current Liabilities	Rs m	9,348	10,104	8.1
Long-term Debt	Rs m	2,000	2,000	0.0
Total Liabilities	Rs m	8,179	7,303	-10.7
Current assets	Rs m	3,914	3,318	-15.2
Fixed Assets	Rs m	3,957	3,676	-7.1
Total Assets	Rs m	8,179	7,303	-10.7

NITCO Cash Flow Statement Analysis

• NITCO's cash flow from operating activities (CFO) during FY24 stood at Rs -88 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 million, an improvement of 27.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 53 million, an improvement of 255% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -39 million from the Rs -12 million net cash flows seen during FY23.

NITCO 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	26	-88	-
Cash Flow from Investing Activities	Rs m	-4	-5	-
Cash Flow from Financing Activities	Rs m	-34	53	-
Net Cash Flow	Rs m	-12	-39	-

Current Valuations for NITCO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -22.7, an decline from the EPS of Rs -21.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 85.1, stands at -3.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -1.2 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at -2.4 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	53.4	45.3
TTM Earnings per share	Rs	-21.0	-22.7
Diluted earnings per share	Rs	-21.0	-22.7
Price to Cash Flow	x	-1.1	-2.4
TTM P/E ratio	x	-0.9	-3.5
Price / Book Value ratio	x	-0.5	-0.6
Market Cap	Rs m	1,703	3,155
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NITCO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY24, from 0.4x 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 -0.7x during FY24, from -1.1x 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 31.8% during FY24, from 43.3% 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 declined and down at 21.5% during FY24, from 52.2% 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 -9.2% during FY24, from -9.5% 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	0.4	0.3
Debtors’ Days	Days	704	418
Interest coverage	x	-1.1	-0.7
Debt to equity ratio	x	-0.6	-0.4
Return on assets	%	-9.5	-9.2
Return on equity	%	43.3	31.8
Return on capital employed	%	52.2	21.5

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

NITCO Share Price Performance

Over the last one year, NITCO share price has moved up from Rs 19.7 to Rs 85.1, registering a gain of Rs 65.4 or around 333.0%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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