NIPPON LIFE INDIA AMC 2023-24 Annual Report Analysis

Thu, 20 Jun

NIPPON LIFE INDIA AMC 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.

NIPPON LIFE INDIA AMC Income Statement Analysis

• Operating income during the year rose 12.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 63.9% in FY24 as against 58.8% in FY23.
• Depreciation charges decreased by 4.7% and finance costs increased by 55.4% YoY, respectively.
• Other income grew by 112.5% YoY.
• Net profit for the year grew by 44.9% YoY.
• Net profit margins during the year grew from 53.6% in FY23 to 68.8% in FY24.

NIPPON LIFE INDIA AMC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,498	15,211	12.7%
Other income	Rs m	1,677	3,563	112.5%
Total Revenues	Rs m	15,175	18,775	23.7%
Gross profit	Rs m	7,938	9,727	22.5%
Depreciation	Rs m	298	284	-4.7%
Interest	Rs m	40	62	55.4%
Profit before tax	Rs m	9,277	12,945	39.5%
Tax	Rs m	2,048	2,473	20.7%
Profit after tax	Rs m	7,229	10,472	44.9%
Gross profit margin	%	58.8	63.9
Effective tax rate	%	22.1	19.1
Net profit margin	%	53.6	68.8

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

NIPPON LIFE INDIA AMC Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 5.5%.
• Current assets fell 23% and stood at Rs 4 billion, while fixed assets rose 12% and stood at Rs 38 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 42 billion as against Rs 39 billion during FY23, thereby witnessing a growth of 8%.

NIPPON LIFE INDIA AMC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	33,891	37,049	9.3
Current Liabilities	Rs m	2,401	2,533	5.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	38,609	41,585	7.7
Current assets	Rs m	4,970	3,813	-23.3
Fixed Assets	Rs m	33,639	37,773	12.3
Total Assets	Rs m	38,609	41,585	7.7

NIPPON LIFE INDIA AMC Cash Flow Statement Analysis

• NIPPON LIFE INDIA AMC's cash flow from operating activities (CFO) during FY24 stood at Rs 7 billion, an improvement of 26.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -572 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -7 billion, an improvement of 6% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 122 million from the Rs -267 million net cash flows seen during FY23.

NIPPON LIFE INDIA AMC 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	5,841	7,393	26.6%
Cash Flow from Investing Activities	Rs m	1,009	-572	-
Cash Flow from Financing Activities	Rs m	-7,117	-6,699	-
Net Cash Flow	Rs m	-267	122	-

Current Valuations for NIPPON LIFE INDIA AMC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.6, an improvement from the EPS of Rs 11.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 649.2, stands at 37.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.1 times, while the price to sales ratio stands at 26.9 times.
• The company's price to cash flow (P/CF) ratio stood at 22.0 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	21.7	24.1
TTM Earnings per share	Rs	11.6	16.6
Diluted earnings per share	Rs	11.4	16.6
Price to Cash Flow	x	17.6	22.0
TTM P/E ratio	x	18.3	37.1
Price / Book Value ratio	x	5.1	6.4
Market Cap	Rs m	172,729	237,084
Dividends per share (Unadj.)	Rs	11.5	16.5

Ratio Analysis for NIPPON LIFE INDIA AMC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 2.1x 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 210.8x during FY24, from 234.7x 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 28.3% during FY24, from 21.3% 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 35.1% during FY24, from 27.5% 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 25.3% during FY24, from 18.8% 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	2.1	1.5
Debtors’ Days	Days	3	3
Interest coverage	x	234.7	210.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.8	25.3
Return on equity	%	21.3	28.3
Return on capital employed	%	27.5	35.1

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

NIPPON LIFE INDIA AMC Share Price Performance

Over the last one year, NIPPON LIFE INDIA AMC share price has moved up from Rs 252.3 to Rs 649.2, registering a gain of Rs 396.9 or around 157.3%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for NIPPON LIFE INDIA AMC and quarterly results for NIPPON LIFE INDIA AMC)