NAHAR POLY FILMS 2023-24 Annual Report Analysis

Thu, 26 Sep

NAHAR POLY FILMS 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.

NAHAR POLY FILMS Income Statement Analysis

• Operating income during the year fell 17.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 73.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.6% in FY24 as against 11.3% in FY23.
• Depreciation charges increased by 0.6% and finance costs decreased by 2.7% YoY, respectively.
• Other income grew by 120.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 4.3% in FY23 to 1.6% in FY24.

NAHAR POLY FILMS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,232	5,999	-17.0%
Other income	Rs m	49	107	120.0%
Total Revenues	Rs m	7,281	6,106	-16.1%
Gross profit	Rs m	817	213	-73.9%
Depreciation	Rs m	322	324	0.6%
Interest	Rs m	124	120	-2.7%
Profit before tax	Rs m	419	-124	NA
Tax	Rs m	110	-30	NA
Profit after tax	Rs m	310	-95	NA
Gross profit margin	%	11.3	3.6
Effective tax rate	%	26.2	23.8
Net profit margin	%	4.3	-1.6

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NAHAR POLY FILMS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 490 million as compared to Rs 657 million in FY23, thereby witnessing an decrease of -25.3%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY23, a fall of 18.2%.
• Current assets fell 21% and stood at Rs 1 billion, while fixed assets rose 1% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 10 billion during FY23, thereby witnessing a fall of 2%.

NAHAR POLY FILMS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,794	7,989	2.5
Current Liabilities	Rs m	657	490	-25.3
Long-term Debt	Rs m	1,229	1,006	-18.2
Total Liabilities	Rs m	9,791	9,586	-2.1
Current assets	Rs m	1,426	1,126	-21.0
Fixed Assets	Rs m	8,365	8,460	1.1
Total Assets	Rs m	9,791	9,586	-2.1

NAHAR POLY FILMS Cash Flow Statement Analysis

• NAHAR POLY FILMS's cash flow from operating activities (CFO) during FY24 stood at Rs 167 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -112 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -381 million, an improvement of 7% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -326 million from the Rs 322 million net cash flows seen during FY23.

NAHAR POLY FILMS 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	1,098	167	-84.8%
Cash Flow from Investing Activities	Rs m	-367	-112	-
Cash Flow from Financing Activities	Rs m	-409	-381	-
Net Cash Flow	Rs m	322	-326	-

Current Valuations for NAHAR POLY FILMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.9, an decline from the EPS of Rs 12.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 246.0, stands at 1,718.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 25.2 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	294.1	244.0
TTM Earnings per share	Rs	12.6	-3.9
Diluted earnings per share	Rs	12.6	-3.9
Price to Cash Flow	x	8.9	25.2
TTM P/E ratio	x	18.2	1,718.4
Price / Book Value ratio	x	1.3	0.7
Market Cap	Rs m	9,847	5,774
Dividends per share (Unadj.)	Rs	1.5	1.0

Ratio Analysis for NAHAR POLY FILMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x 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 deteriorated and stood at 0.0x during FY24, from 4.4x 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 -1.2% during FY24, from 4.0% 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 0.0% during FY24, from 6.0% 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 0.3% during FY24, from 4.4% 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	2.2	2.3
Debtors’ Days	Days	129	153
Interest coverage	x	4.4	0.0
Debt to equity ratio	x	0.2	0.1
Return on assets	%	4.4	0.3
Return on equity	%	4.0	-1.2
Return on capital employed	%	6.0	0.0

To see how NAHAR POLY FILMS has performed over the last 5 years, please visit here.

NAHAR POLY FILMS Share Price Performance

Over the last one year, NAHAR POLY FILMS share price has moved down from Rs 252.4 to Rs 246.0, registering a loss of Rs 6.4 or around 2.5%.

Overall, the S&P BSE SENSEX is up 29.4% over the year.

(To know more, check out historical annual results for NAHAR POLY FILMS and quarterly results for NAHAR POLY FILMS)