NLC INDIA 2023-24 Annual Report Analysis

Mon, 9 Sep

NLC INDIA 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.

NLC INDIA Income Statement Analysis

• Operating income during the year fell 19.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 35.5% in FY24 as against 22.6% in FY23.
• Depreciation charges increased by 1.3% and finance costs decreased by 16.1% YoY, respectively.
• Other income declined by 22.2% YoY.
• Net profit for the year grew by 31.0% YoY.
• Net profit margins during the year grew from 8.8% in FY23 to 14.4% in FY24.

NLC INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	161,652	129,990	-19.6%
Other income	Rs m	12,180	9,474	-22.2%
Total Revenues	Rs m	173,832	139,464	-19.8%
Gross profit	Rs m	36,503	46,084	26.2%
Depreciation	Rs m	18,008	18,249	1.3%
Interest	Rs m	10,117	8,493	-16.1%
Profit before tax	Rs m	20,558	28,816	40.2%
Tax	Rs m	6,307	10,143	60.8%
Profit after tax	Rs m	14,251	18,673	31.0%
Gross profit margin	%	22.6	35.5
Effective tax rate	%	30.7	35.2
Net profit margin	%	8.8	14.4

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NLC INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 115 billion as compared to Rs 113 billion in FY23, thereby witnessing an increase of 2.1%.
• Long-term debt stood at Rs 192 billion as compared to Rs 185 billion during FY23, a growth of 3.9%.
• Current assets fell 1% and stood at Rs 116 billion, while fixed assets rose 6% and stood at Rs 438 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 555 billion as against Rs 533 billion during FY23, thereby witnessing a growth of 4%.

NLC INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	151,688	165,311	9.0
Current Liabilities	Rs m	112,788	115,151	2.1
Long-term Debt	Rs m	184,982	192,257	3.9
Total Liabilities	Rs m	532,957	554,914	4.1
Current assets	Rs m	118,028	116,292	-1.5
Fixed Assets	Rs m	414,928	438,147	5.6
Total Assets	Rs m	532,957	554,914	4.1

NLC INDIA Cash Flow Statement Analysis

• NLC INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 56 billion, an improvement of 34.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -32 billion, an improvement of 26.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -20 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 5 billion from the Rs -619 million net cash flows seen during FY23.

NLC INDIA 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	41,713	56,237	34.8%
Cash Flow from Investing Activities	Rs m	-24,986	-31,513	-
Cash Flow from Financing Activities	Rs m	-17,347	-19,851	-
Net Cash Flow	Rs m	-619	4,874	-

Current Valuations for NLC INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.5, an improvement from the EPS of Rs 10.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 261.3, stands at 17.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 6.9 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	116.6	93.7
TTM Earnings per share	Rs	10.3	13.5
Diluted earnings per share	Rs	10.3	13.5
Price to Cash Flow	x	3.3	6.9
TTM P/E ratio	x	7.5	17.9
Price / Book Value ratio	x	0.7	1.5
Market Cap	Rs m	106,494	255,980
Dividends per share (Unadj.)	Rs	3.5	3.0

Ratio Analysis for NLC INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x 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 4.4x 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 improved and stood at 11.3% during FY24, from 9.4% 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 10.4% during FY24, from 9.1% 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 4.9% during FY24, from 4.6% 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	1.0
Debtors’ Days	Days	10	11
Interest coverage	x	3.0	4.4
Debt to equity ratio	x	1.2	1.2
Return on assets	%	4.6	4.9
Return on equity	%	9.4	11.3
Return on capital employed	%	9.1	10.4

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

NLC INDIA Share Price Performance

Over the last one year, NLC INDIA share price has moved up from Rs 141.5 to Rs 261.3, registering a gain of Rs 119.9 or around 84.7%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 7,945.6 (down 0.5%). Over the last one year it has moved up from 4,680.7 to 7,945.6, a gain of 3,265 points (up 69.8%).

Overall, the S&P BSE SENSEX is up 23.7% over the year.

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