NOVA AGRITECH LTD. 2023-24 Annual Report Analysis

Tue, 17 Sep

NOVA AGRITECH LTD. 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.

NOVA AGRITECH LTD. Income Statement Analysis

• Operating income during the year rose 19.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.6% in FY24 as against 18.5% in FY23.
• Depreciation charges decreased by 16.9% and finance costs increased by 2.6% YoY, respectively.
• Other income declined by 90.5% YoY.
• Net profit for the year grew by 38.2% YoY.
• Net profit margins during the year grew from 9.7% in FY23 to 11.2% in FY24.

NOVA AGRITECH LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,106	2,525	19.9%
Other income	Rs m	4	0	-90.5%
Total Revenues	Rs m	2,109	2,525	19.7%
Gross profit	Rs m	389	443	13.8%
Depreciation	Rs m	24	20	-16.9%
Interest	Rs m	88	90	2.6%
Profit before tax	Rs m	282	334	18.5%
Tax	Rs m	77	51	-34.1%
Profit after tax	Rs m	205	283	38.2%
Gross profit margin	%	18.5	17.6
Effective tax rate	%	27.2	15.2
Net profit margin	%	9.7	11.2

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NOVA AGRITECH LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 955 million as compared to Rs 989 million in FY23, thereby witnessing an decrease of -3.5%.
• Long-term debt down at Rs 80 million as compared to Rs 164 million during FY23, a fall of 51.3%.
• Current assets rose 72% and stood at Rs 3 billion, while fixed assets fell 2% and stood at Rs 174 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 64%.

NOVA AGRITECH LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	639	1,931	202.3
Current Liabilities	Rs m	989	955	-3.5
Long-term Debt	Rs m	164	80	-51.3
Total Liabilities	Rs m	1,762	2,894	64.2
Current assets	Rs m	1,584	2,720	71.7
Fixed Assets	Rs m	178	174	-2.2
Total Assets	Rs m	1,762	2,894	64.2

NOVA AGRITECH LTD. Cash Flow Statement Analysis

• NOVA AGRITECH LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 8 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -235 million, an improvement of 1,163.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 822 million, an improvement of 3,991% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 595 million from the Rs 17 million net cash flows seen during FY23.

NOVA AGRITECH LTD. 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	57	8	-86.1%
Cash Flow from Investing Activities	Rs m	-19	-235	-
Cash Flow from Financing Activities	Rs m	-21	822	-
Net Cash Flow	Rs m	17	595	3,379.0%

Current Valuations for NOVA AGRITECH LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an decline from the EPS of Rs 3.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 70.5, stands at 23.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 19.1 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	33.6	28.0
TTM Earnings per share	Rs	3.3	3.1
Diluted earnings per share	Rs	2.2	3.1
Price to Cash Flow	x	0.0	19.1
TTM P/E ratio	x	0.0	23.0
Price / Book Value ratio	x	0.0	3.0
Market Cap	Rs m	0	5,790
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NOVA AGRITECH LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.8x during FY24, from 1.6x 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 4.7x during FY24, from 4.2x 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 14.7% during FY24, from 32.1% 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 21.1% during FY24, from 46.1% 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 declined and down at 12.9% during FY24, from 16.6% 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	1.6	2.8
Debtors’ Days	Days	1,832	1,784
Interest coverage	x	4.2	4.7
Debt to equity ratio	x	0.3	0.0
Return on assets	%	16.6	12.9
Return on equity	%	32.1	14.7
Return on capital employed	%	46.1	21.1

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

NOVA AGRITECH LTD. Share Price Performance

Over the last one year, NOVA AGRITECH LTD. share price has moved up from Rs 0.0 to Rs 70.5, registering a gain of Rs 70.5 or around 0.0%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for NOVA AGRITECH LTD. and quarterly results for NOVA AGRITECH LTD.)