NYKAA 2023-24 Annual Report Analysis

Wed, 28 Aug

NYKAA 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.

NYKAA Income Statement Analysis

• Operating income during the year rose 24.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.4% in FY24 as against 5.0% in FY23.
• Depreciation charges increased by 29.4% and finance costs increased by 10.5% YoY, respectively.
• Other income declined by 0.9% YoY.
• Net profit for the year grew by 76.1% YoY.
• Net profit margins during the year grew from 0.5% in FY23 to 0.7% in FY24.

NYKAA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	51,438	63,856	24.1%
Other income	Rs m	302	299	-0.9%
Total Revenues	Rs m	51,740	64,156	24.0%
Gross profit	Rs m	2,571	3,469	34.9%
Depreciation	Rs m	1,733	2,242	29.4%
Interest	Rs m	756	836	10.5%
Profit before tax	Rs m	384	690	79.8%
Tax	Rs m	136	253	86.5%
Profit after tax	Rs m	248	437	76.1%
Gross profit margin	%	5.0	5.4
Effective tax rate	%	35.4	36.7
Net profit margin	%	0.5	0.7

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NYKAA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 19 billion as compared to Rs 12 billion in FY23, thereby witnessing an increase of 56.9%.
• Current assets rose 20% and stood at Rs 23 billion, while fixed assets fell 2% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 31 billion as against Rs 28 billion during FY23, thereby witnessing a growth of 13%.

NYKAA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,610	12,336	-9.4
Current Liabilities	Rs m	11,975	18,789	56.9
Long-term Debt	Rs m	4	0	-100.0
Total Liabilities	Rs m	27,622	31,316	13.4
Current assets	Rs m	19,056	22,929	20.3
Fixed Assets	Rs m	8,566	8,387	-2.1
Total Assets	Rs m	27,622	31,316	13.4

NYKAA Cash Flow Statement Analysis

• NYKAA's cash flow from operating activities (CFO) during FY24 stood at Rs 3 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -101 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 443 million, an improvement of 809% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 344 million from the Rs 42 million net cash flows seen during FY23.

NYKAA 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	-1,402	3	-
Cash Flow from Investing Activities	Rs m	1,396	-101	-
Cash Flow from Financing Activities	Rs m	49	443	809.0%
Net Cash Flow	Rs m	42	344	718.3%

Current Valuations for NYKAA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an improvement from the EPS of Rs 0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 220.4, stands at 1,222.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 51.0 times, while the price to sales ratio stands at 9.9 times.
• The company's price to cash flow (P/CF) ratio stood at 165.0 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	18.0	22.4
TTM Earnings per share	Rs	0.1	0.2
Diluted earnings per share	Rs	0.1	0.2
Price to Cash Flow	x	177.6	165.0
TTM P/E ratio	x	1,417.0	1,222.8
Price / Book Value ratio	x	45.7	35.8
Market Cap	Rs m	621,441	442,249
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NYKAA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.6x 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 1.8x during FY24, from 1.5x 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 improved and stood at 3.5% during FY24, from 1.8% 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 12.4% during FY24, from 8.4% 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 4.1% during FY24, from 3.6% 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	1.6	1.2
Debtors’ Days	Days	12	14
Interest coverage	x	1.5	1.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.6	4.1
Return on equity	%	1.8	3.5
Return on capital employed	%	8.4	12.4

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

NYKAA Share Price Performance

Over the last one year, NYKAA share price has moved up from Rs 133.1 to Rs 220.4, registering a gain of Rs 87.4 or around 65.7%.

Overall, the S&P BSE SENSEX is up 26.0% over the year.

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