NAHAR SPINNING M 2023-24 Annual Report Analysis

Fri, 23 Aug

NAHAR SPINNING M 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 SPINNING M Income Statement Analysis

• Operating income during the year rose 9.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 61.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.7% in FY24 as against 7.6% in FY23.
• Depreciation charges increased by 21.9% and finance costs increased by 111.1% YoY, respectively.
• Other income declined by 64.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 4.0% in FY23 to 1.7% in FY24.

NAHAR SPINNING M Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	27,969	30,500	9.0%
Other income	Rs m	443	156	-64.9%
Total Revenues	Rs m	28,412	30,656	7.9%
Gross profit	Rs m	2,118	817	-61.4%
Depreciation	Rs m	726	885	21.9%
Interest	Rs m	332	702	111.1%
Profit before tax	Rs m	1,503	-614	NA
Tax	Rs m	396	-103	NA
Profit after tax	Rs m	1,108	-511	NA
Gross profit margin	%	7.6	2.7
Effective tax rate	%	26.3	16.8
Net profit margin	%	4.0	-1.7

Don't Miss: Key Information for Long-term Investors

NAHAR SPINNING M Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 12 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 57.4%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY23, a growth of 0.0%.
• Current assets rose 28% and stood at Rs 17 billion, while fixed assets fell 4% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 29 billion as against Rs 26 billion during FY23, thereby witnessing a growth of 13%.

NAHAR SPINNING M Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,539	14,812	-4.7
Current Liabilities	Rs m	7,399	11,643	57.4
Long-term Debt	Rs m	2,181	2,181	0.0
Total Liabilities	Rs m	25,520	28,891	13.2
Current assets	Rs m	13,614	17,492	28.5
Fixed Assets	Rs m	11,906	11,399	-4.3
Total Assets	Rs m	25,520	28,891	13.2

NAHAR SPINNING M Cash Flow Statement Analysis

• NAHAR SPINNING M's cash flow from operating activities (CFO) during FY24 stood at Rs -4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -493 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 4 billion, an improvement of 230% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -513 million from the Rs 491 million net cash flows seen during FY23.

NAHAR SPINNING M 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	6,088	-3,947	-
Cash Flow from Investing Activities	Rs m	-2,567	-493	-
Cash Flow from Financing Activities	Rs m	-3,031	3,927	-
Net Cash Flow	Rs m	491	-513	-

Current Valuations for NAHAR SPINNING M

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -14.2, an decline from the EPS of Rs 30.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 332.3, stands at -44.5 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 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 28.7 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	775.4	845.6
TTM Earnings per share	Rs	30.7	-14.2
Diluted earnings per share	Rs	30.7	-14.2
Price to Cash Flow	x	4.7	28.7
TTM P/E ratio	x	7.8	-44.5
Price / Book Value ratio	x	1.0	0.7
Market Cap	Rs m	15,501	10,729
Dividends per share (Unadj.)	Rs	1.5	1.0

Ratio Analysis for NAHAR SPINNING M

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 1.8x 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 0.1x during FY24, from 5.5x 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 -3.4% during FY24, from 7.1% 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 0.5% during FY24, from 10.4% 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 0.7% during FY24, from 5.6% 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	1.8	1.5
Debtors’ Days	Days	411	513
Interest coverage	x	5.5	0.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.6	0.7
Return on equity	%	7.1	-3.4
Return on capital employed	%	10.4	0.5

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

NAHAR SPINNING M Share Price Performance

Over the last one year, NAHAR SPINNING M share price has moved up from Rs 267.3 to Rs 332.3, registering a gain of Rs 65.0 or around 24.3%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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