NUVAMA WEALTH MANAGEMENT 2023-24 Annual Report Analysis

Tue, 16 Jul

NUVAMA WEALTH MANAGEMENT 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.

NUVAMA WEALTH MANAGEMENT Income Statement Analysis

• Operating income during the year rose 86.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 523.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 38.2% in FY24 as against 11.4% in FY23.
• Depreciation charges increased by 60.3% and finance costs increased by 123.4% YoY, respectively.
• Other income declined by 99.6% YoY.
• Net profit for the year grew by 1457.5% YoY.
• Net profit margins during the year grew from 1.8% in FY23 to 15.0% in FY24.

NUVAMA WEALTH MANAGEMENT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,505	6,541	86.6%
Other income	Rs m	437	2	-99.6%
Total Revenues	Rs m	3,942	6,543	66.0%
Gross profit	Rs m	401	2,498	523.5%
Depreciation	Rs m	458	735	60.3%
Interest	Rs m	309	689	123.4%
Profit before tax	Rs m	71	1,075	1,414.1%
Tax	Rs m	8	94	1,073.9%
Profit after tax	Rs m	63	981	1,457.5%
Gross profit margin	%	11.4	38.2
Effective tax rate	%	11.3	8.8
Net profit margin	%	1.8	15.0

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NUVAMA WEALTH MANAGEMENT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 28 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 352.4%.
• Current assets rose 402% and stood at Rs 30 billion, while fixed assets fell 8% and stood at Rs 16 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 46 billion as against Rs 23 billion during FY23, thereby witnessing a growth of 99%.

NUVAMA WEALTH MANAGEMENT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,791	16,793	6.3
Current Liabilities	Rs m	6,263	28,338	352.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	23,153	46,011	98.7
Current assets	Rs m	6,034	30,288	402.0
Fixed Assets	Rs m	17,119	15,723	-8.2
Total Assets	Rs m	23,153	46,011	98.7

NUVAMA WEALTH MANAGEMENT Cash Flow Statement Analysis

• NUVAMA WEALTH MANAGEMENT's cash flow from operating activities (CFO) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -820 million 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 -20 million from the Rs -663 million net cash flows seen during FY23.

NUVAMA WEALTH MANAGEMENT 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	-2,705	-1,723	-
Cash Flow from Investing Activities	Rs m	-822	-820	-
Cash Flow from Financing Activities	Rs m	2,864	2,523	-11.9%
Net Cash Flow	Rs m	-663	-20	-

Current Valuations for NUVAMA WEALTH MANAGEMENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.8, an improvement from the EPS of Rs 1.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,834.1, stands at 174.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.2 times, while the price to sales ratio stands at 26.1 times.
• The company's price to cash flow (P/CF) ratio stood at 71.4 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	100.0	185.2
TTM Earnings per share	Rs	1.8	27.8
Diluted earnings per share	Rs	1.8	27.7
Price to Cash Flow	x	0.0	71.4
TTM P/E ratio	x	0.0	174.4
Price / Book Value ratio	x	0.0	7.3
Market Cap	Rs m	0	122,450
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NUVAMA WEALTH MANAGEMENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY24, from 1.0x 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 2.6x during FY24, from 1.2x 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 5.8% during FY24, from 0.4% 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 improved and stood at 10.5% during FY24, from 2.4% 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 improved and stood at 3.6% during FY24, from 1.6% 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	1.0	1.1
Debtors’ Days	Days	61	89
Interest coverage	x	1.2	2.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.6	3.6
Return on equity	%	0.4	5.8
Return on capital employed	%	2.4	10.5

To see how NUVAMA WEALTH MANAGEMENT has performed over the last 5 years, please visit here.

NUVAMA WEALTH MANAGEMENT Share Price Performance

Over the last one year, NUVAMA WEALTH MANAGEMENT share price has moved up from Rs 0.0 to Rs 4,834.1, registering a gain of Rs 4,834.1 or around 0.0%.

Overall, the S&P BSE SENSEX is up 23.6% over the year.

(To know more, check out historical annual results for NUVAMA WEALTH MANAGEMENT and quarterly results for NUVAMA WEALTH MANAGEMENT)