NATIONAL FERT 2023-24 Annual Report Analysis

Mon, 9 Sep

NATIONAL FERT 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.

NATIONAL FERT Income Statement Analysis

• Operating income during the year fell 20.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 31.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.0% in FY24 as against 3.5% in FY23.
• Depreciation charges increased by 2.5% and finance costs decreased by 10.0% YoY, respectively.
• Other income declined by 56.2% YoY.
• Net profit for the year declined by 67.3% YoY.
• Net profit margins during the year declined from 1.5% in FY23 to 0.6% in FY24.

NATIONAL FERT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	295,843	235,603	-20.4%
Other income	Rs m	2,272	994	-56.2%
Total Revenues	Rs m	298,115	236,598	-20.6%
Gross profit	Rs m	10,451	7,130	-31.8%
Depreciation	Rs m	3,528	3,617	2.5%
Interest	Rs m	3,075	2,769	-10.0%
Profit before tax	Rs m	6,120	1,738	-71.6%
Tax	Rs m	1,537	238	-84.5%
Profit after tax	Rs m	4,583	1,501	-67.3%
Gross profit margin	%	3.5	3.0
Effective tax rate	%	25.1	13.7
Net profit margin	%	1.5	0.6

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NATIONAL FERT Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 68 billion as compared to Rs 75 billion in FY23, thereby witnessing an decrease of -9.5%.
• Current assets fell 18% and stood at Rs 67 billion, while fixed assets rose 1% and stood at Rs 46 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 112 billion as against Rs 126 billion during FY23, thereby witnessing a fall of 11%.

NATIONAL FERT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	25,417	25,543	0.5
Current Liabilities	Rs m	75,074	67,945	-9.5
Long-term Debt	Rs m	5,347	0	-100.0
Total Liabilities	Rs m	126,279	112,206	-11.1
Current assets	Rs m	80,810	66,508	-17.7
Fixed Assets	Rs m	45,292	45,528	0.5
Total Assets	Rs m	126,279	112,206	-11.1

NATIONAL FERT Cash Flow Statement Analysis

• NATIONAL FERT's cash flow from operating activities (CFO) during FY24 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 62.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 162 million from the Rs -130 million net cash flows seen during FY23.

NATIONAL FERT 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	-3,332	6,681	-
Cash Flow from Investing Activities	Rs m	-2,057	-3,344	-
Cash Flow from Financing Activities	Rs m	5,259	-3,175	-
Net Cash Flow	Rs m	-130	162	-

Current Valuations for NATIONAL FERT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an decline from the EPS of Rs 9.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 128.1, stands at 37.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 9.4 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	603.0	480.3
TTM Earnings per share	Rs	9.3	3.1
Diluted earnings per share	Rs	9.3	3.1
Price to Cash Flow	x	4.4	9.4
TTM P/E ratio	x	7.8	37.5
Price / Book Value ratio	x	1.2	1.9
Market Cap	Rs m	29,594	47,961
Dividends per share (Unadj.)	Rs	2.8	0.3

Ratio Analysis for NATIONAL FERT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.1x 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 1.6x during FY24, from 3.0x 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 5.9% during FY24, from 18.0% 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 17.6% during FY24, from 29.9% 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 3.8% during FY24, from 6.1% 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	1.1	1.0
Debtors’ Days	Days	5	6
Interest coverage	x	3.0	1.6
Debt to equity ratio	x	0.2	0.0
Return on assets	%	6.1	3.8
Return on equity	%	18.0	5.9
Return on capital employed	%	29.9	17.6

To see how NATIONAL FERT has performed over the last 5 years, please visit here.

NATIONAL FERT Share Price Performance

Over the last one year, NATIONAL FERT share price has moved up from Rs 71.8 to Rs 128.1, registering a gain of Rs 56.3 or around 78.4%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

(To know more, check out historical annual results for NATIONAL FERT and quarterly results for NATIONAL FERT)