N.R.AGARWAL 2023-24 Annual Report Analysis

Wed, 17 Jul

N.R.AGARWAL 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.

N.R.AGARWAL Income Statement Analysis

• Operating income during the year fell 26.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.6% in FY24 as against 10.4% in FY23.
• Depreciation charges increased by 4.5% and finance costs decreased by 23.5% YoY, respectively.
• Other income declined by 26.8% YoY.
• Net profit for the year grew by 26.3% YoY.
• Net profit margins during the year grew from 5.6% in FY23 to 9.7% in FY24.

N.R.AGARWAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	17,661	12,931	-26.8%
Other income	Rs m	129	95	-26.8%
Total Revenues	Rs m	17,790	13,026	-26.8%
Gross profit	Rs m	1,844	1,761	-4.5%
Depreciation	Rs m	358	374	4.5%
Interest	Rs m	138	105	-23.5%
Profit before tax	Rs m	1,477	1,376	-6.8%
Tax	Rs m	484	122	-74.9%
Profit after tax	Rs m	993	1,255	26.3%
Gross profit margin	%	10.4	13.6
Effective tax rate	%	32.8	8.8
Net profit margin	%	5.6	9.7

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N.R.AGARWAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 47.3%.
• Long-term debt stood at Rs 4 billion as compared to Rs 1 billion during FY23, a growth of 235.6%.
• Current assets rose 6% and stood at Rs 4 billion, while fixed assets rose 71% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 16 billion as against Rs 10 billion during FY23, thereby witnessing a growth of 50%.

N.R.AGARWAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,356	7,603	19.6
Current Liabilities	Rs m	1,537	2,264	47.3
Long-term Debt	Rs m	1,328	4,458	235.6
Total Liabilities	Rs m	10,447	15,666	49.9
Current assets	Rs m	3,432	3,623	5.6
Fixed Assets	Rs m	7,015	12,024	71.4
Total Assets	Rs m	10,447	15,666	49.9

N.R.AGARWAL Cash Flow Statement Analysis

• N.R.AGARWAL's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 4.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion, an improvement of 468.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 4 billion, an improvement of 1,743% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -79 million from the Rs 80 million net cash flows seen during FY23.

N.R.AGARWAL 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	1,290	1,351	4.8%
Cash Flow from Investing Activities	Rs m	-964	-5,478	-
Cash Flow from Financing Activities	Rs m	-246	4,048	-
Net Cash Flow	Rs m	80	-79	-

Current Valuations for N.R.AGARWAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 73.7, an improvement from the EPS of Rs 58.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 494.0, stands at 6.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 3.8 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	1,037.6	759.8
TTM Earnings per share	Rs	58.3	73.7
Diluted earnings per share	Rs	58.3	73.7
Price to Cash Flow	x	2.6	3.8
TTM P/E ratio	x	3.5	6.7
Price / Book Value ratio	x	0.8	0.8
Market Cap	Rs m	5,314	6,247
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for N.R.AGARWAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 2.2x 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 improved and stood at 14.1x during FY24, from 11.7x 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 improved and stood at 16.5% during FY24, from 15.6% 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 12.3% during FY24, from 21.0% 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 8.7% during FY24, from 10.8% 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	2.2	1.6
Debtors’ Days	Days	285	245
Interest coverage	x	11.7	14.1
Debt to equity ratio	x	0.2	0.6
Return on assets	%	10.8	8.7
Return on equity	%	15.6	16.5
Return on capital employed	%	21.0	12.3

To see how N.R.AGARWAL has performed over the last 5 years, please visit here.

N.R.AGARWAL Share Price Performance

Over the last one year, N.R.AGARWAL share price has moved up from Rs 285.1 to Rs 494.0, registering a gain of Rs 208.9 or around 73.3%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for N.R.AGARWAL and quarterly results for N.R.AGARWAL)