NAHAR INDUSTRIES 2023-24 Annual Report Analysis

Wed, 11 Sep

NAHAR 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.

NAHAR INDUSTRIES 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 61.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.7% in FY24 as against 8.1% in FY23.
• Depreciation charges decreased by 5.2% and finance costs decreased by 23.9% YoY, respectively.
• Other income declined by 27.7% YoY.
• Net profit for the year declined by 87.7% YoY.
• Net profit margins during the year declined from 4.4% in FY23 to 0.7% in FY24.

NAHAR INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	17,739	14,718	-17.0%
Other income	Rs m	432	313	-27.7%
Total Revenues	Rs m	18,171	15,030	-17.3%
Gross profit	Rs m	1,435	550	-61.7%
Depreciation	Rs m	483	458	-5.2%
Interest	Rs m	377	287	-23.9%
Profit before tax	Rs m	1,008	118	-88.3%
Tax	Rs m	218	20	-90.6%
Profit after tax	Rs m	789	97	-87.7%
Gross profit margin	%	8.1	3.7
Effective tax rate	%	21.7	17.4
Net profit margin	%	4.4	0.7

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NAHAR INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 79.3%.
• Long-term debt stood at Rs 943 million as compared to Rs 596 million during FY23, a growth of 58.2%.
• Current assets rose 27% and stood at Rs 9 billion, while fixed assets rose 16% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 14 billion during FY23, thereby witnessing a growth of 22%.

NAHAR INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,597	9,705	1.1
Current Liabilities	Rs m	3,127	5,606	79.3
Long-term Debt	Rs m	596	943	58.2
Total Liabilities	Rs m	13,607	16,577	21.8
Current assets	Rs m	6,937	8,835	27.3
Fixed Assets	Rs m	6,670	7,743	16.1
Total Assets	Rs m	13,607	16,577	21.8

NAHAR INDUSTRIES Cash Flow Statement Analysis

• NAHAR INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs -718 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 176.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 151% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 30 million from the Rs -1 million net cash flows seen during FY23.

NAHAR 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	5,035	-718	-
Cash Flow from Investing Activities	Rs m	-550	-1,521	-
Cash Flow from Financing Activities	Rs m	-4,487	2,269	-
Net Cash Flow	Rs m	-1	30	-

Current Valuations for NAHAR INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.3, an decline from the EPS of Rs 18.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 152.7, stands at 40.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 10.0 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	410.5	340.6
TTM Earnings per share	Rs	18.3	2.3
Diluted earnings per share	Rs	18.3	2.3
Price to Cash Flow	x	3.1	10.0
TTM P/E ratio	x	4.9	40.9
Price / Book Value ratio	x	0.7	0.6
Market Cap	Rs m	6,957	5,542
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NAHAR INDUSTRIES

• 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 deteriorated and stood at 1.4x 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 1.0% during FY24, from 8.2% 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 3.8% during FY24, from 13.6% 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 2.3% during FY24, from 8.6% 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	2.2	1.6
Debtors’ Days	Days	337	397
Interest coverage	x	3.7	1.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.6	2.3
Return on equity	%	8.2	1.0
Return on capital employed	%	13.6	3.8

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

NAHAR INDUSTRIES Share Price Performance

Over the last one year, NAHAR INDUSTRIES share price has moved up from Rs 147.6 to Rs 152.7, registering a gain of Rs 5.2 or around 3.5%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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