NACL INDUSTRIES 2023-24 Annual Report Analysis

Wed, 16 Oct

NACL INDUSTRIES 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.

NACL INDUSTRIES Income Statement Analysis

• Operating income during the year fell 15.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 93.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.7% in FY24 as against 9.0% in FY23.
• Depreciation charges decreased by 3.2% and finance costs increased by 60.0% YoY, respectively.
• Other income declined by 2.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 4.5% in FY23 to 3.3% in FY24.

NACL INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	21,155	17,787	-15.9%
Other income	Rs m	145	142	-2.1%
Total Revenues	Rs m	21,300	17,929	-15.8%
Gross profit	Rs m	1,894	125	-93.4%
Depreciation	Rs m	282	272	-3.2%
Interest	Rs m	473	757	60.0%
Profit before tax	Rs m	1,284	-763	NA
Tax	Rs m	335	-174	NA
Profit after tax	Rs m	949	-589	NA
Gross profit margin	%	9.0	0.7
Effective tax rate	%	26.1	22.8
Net profit margin	%	4.5	-3.3

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NACL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 11 billion in FY23, thereby witnessing an increase of 2.5%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY23, a fall of 26.6%.
• Current assets fell 9% and stood at Rs 13 billion, while fixed assets rose 4% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 18 billion as against Rs 19 billion during FY23, thereby witnessing a fall of 6%.

NACL INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,717	5,084	-11.1
Current Liabilities	Rs m	11,151	11,428	2.5
Long-term Debt	Rs m	2,035	1,494	-26.6
Total Liabilities	Rs m	19,138	18,082	-5.5
Current assets	Rs m	14,116	12,880	-8.8
Fixed Assets	Rs m	5,023	5,202	3.6
Total Assets	Rs m	19,138	18,082	-5.5

NACL INDUSTRIES Cash Flow Statement Analysis

• NACL INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 504 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -377 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -218 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -92 million from the Rs -285 million net cash flows seen during FY23.

NACL INDUSTRIES 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	-204	504	-
Cash Flow from Investing Activities	Rs m	-1,424	-377	-
Cash Flow from Financing Activities	Rs m	1,345	-218	-
Net Cash Flow	Rs m	-285	-92	-

Current Valuations for NACL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.0, an decline from the EPS of Rs 4.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 54.0, stands at -25.6 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 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at -50.5 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	106.4	89.3
TTM Earnings per share	Rs	4.8	-3.0
Diluted earnings per share	Rs	4.8	-3.0
Price to Cash Flow	x	13.3	-50.5
TTM P/E ratio	x	17.4	-25.6
Price / Book Value ratio	x	3.1	3.1
Market Cap	Rs m	17,975	15,968
Dividends per share (Unadj.)	Rs	0.7	0.0

Ratio Analysis for NACL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.3x 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 0.0x during FY24, from 3.7x 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 -11.6% during FY24, from 16.6% 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 -0.1% during FY24, from 22.7% 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 0.9% during FY24, from 7.4% 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	1.3	1.1
Debtors’ Days	Days	1,331	1,573
Interest coverage	x	3.7	0.0
Debt to equity ratio	x	0.4	0.3
Return on assets	%	7.4	0.9
Return on equity	%	16.6	-11.6
Return on capital employed	%	22.7	-0.1

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

NACL INDUSTRIES Share Price Performance

Over the last one year, NACL INDUSTRIES share price has moved down from Rs 78.1 to Rs 54.0, registering a loss of Rs 24.1 or around 30.8%.

Overall, the S&P BSE SENSEX is up 23.7% over the year.

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