NOVA PUBLICATIONS 2021-22 Annual Report Analysis

Wed, 22 Jun

NOVA PUBLICATIONS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

NOVA PUBLICATIONS Income Statement Analysis

• Operating income during the year fell 72.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1137.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.3% in FY22 as against 0.2% in FY21.
• Depreciation charges increased by 2900.0% increased by 0.0% YoY, respectively.
• Other income grew by 0.0% YoY.
• Net profit for the year grew by 683.3% YoY.
• Net profit margins during the year grew from 0.1% in FY21 to 4.4% in FY22.

NOVA PUBLICATIONS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	39	11	-72.7%
Other income	Rs m	0	0	0.0%
Total Revenues	Rs m	39	11	-72.7%
Gross profit	Rs m	0	1	1,137.5%
Depreciation	Rs m	0	0	2,900.0%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	0	1	1,050.0%
Tax	Rs m	0	0	2,200.0%
Profit after tax	Rs m	0	0	683.3%
Gross profit margin	%	0.2	9.3
Effective tax rate	%	16.7	33.3
Net profit margin	%	0.1	4.4

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NOVA PUBLICATIONS Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 1 million as compared to Rs 33 million in FY21, thereby witnessing an decrease of -96.5%.
• Long-term debt stood at Rs 1 million as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets fell 73% and stood at Rs 17 million, while fixed assets fell 0% and stood at Rs 17 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 35 million as against Rs 65 million during FY21, thereby witnessing a fall of 47%.

NOVA PUBLICATIONS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	32	33	1.5
Current Liabilities	Rs m	33	1	-96.5
Long-term Debt	Rs m	0	1	0.0
Total Liabilities	Rs m	65	35	-47.2
Current assets	Rs m	65	17	-73.3
Fixed Assets	Rs m	0	17	0.0
Total Assets	Rs m	65	35	-47.2

NOVA PUBLICATIONS Cash Flow Statement Analysis

• NOVA PUBLICATIONS's cash flow from operating activities (CFO) during FY22 stood at Rs 19 million, an improvement of 185,800.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -17 million, an improvement of 0.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 1 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 2 million from the Rs 0 million net cash flows seen during FY21.

NOVA PUBLICATIONS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	0	19	185,800.0%
Cash Flow from Investing Activities	Rs m	0	-17	-
Cash Flow from Financing Activities	Rs m	0	1	0.0%
Net Cash Flow	Rs m	0	2	17,300.0%

Current Valuations for NOVA PUBLICATIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an improvement from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 10.2, stands at -168.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 83.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	12.3	3.4
TTM Earnings per share	Rs	0.0	0.1
Diluted earnings per share	Rs	0.0	0.1
Price to Cash Flow	x	1,383.5	83.5
TTM P/E ratio	x	1,528.8	-168.9
Price / Book Value ratio	x	2.2	2.0
Market Cap	Rs m	71	64
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NOVA PUBLICATIONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 15.2x during FY22, from 2.0x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 1.4% during FY22, from 0.2% during FY22. 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 2.1% during FY22, from 0.2% during FY21. 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 1.4% during FY22, from 0.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.0	15.2
Debtors’ Days	Days	535,845,078	115,686,871
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.1	1.4
Return on equity	%	0.2	1.4
Return on capital employed	%	0.2	2.1

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

NOVA PUBLICATIONS Share Price Performance

Over the last one year, NOVA PUBLICATIONS share price has moved down from Rs 23.3 to Rs 10.2, registering a loss of Rs 13.1 or around 56.3%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 12,687.9 (down 1.0%). Over the last one year it has moved down from 12,954.8 to 12,687.9, a loss of 267 points (down 2.1%).

Overall, the S&P BSE SENSEX is down 1.4% over the year.

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