NALWA SONS INV 2021-22 Annual Report Analysis

Thu, 31 Mar

NALWA SONS INV has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

NALWA SONS INV Income Statement Analysis

• Operating income during the year rose 42.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 67.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 81.2% in FY22 as against 69.4% in FY21.
• Depreciation charges increased by 0.0% and finance costs decreased by 60.0% YoY, respectively.
• Other income grew by 78.9% YoY.
• Net profit for the year grew by 52.7% YoY.
• Net profit margins during the year grew from 66.2% in FY21 to 70.8% in FY22.

NALWA SONS INV Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	651	931	42.9%
Other income	Rs m	24	43	78.9%
Total Revenues	Rs m	675	974	44.2%
Gross profit	Rs m	452	756	67.2%
Depreciation	Rs m	0	0	0.0%
Interest	Rs m	0	0	-60.0%
Profit before tax	Rs m	476	799	67.8%
Tax	Rs m	44	140	214.9%
Profit after tax	Rs m	431	659	52.7%
Gross profit margin	%	69.4	81.2
Effective tax rate	%	9.3	17.5
Net profit margin	%	66.2	70.8

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NALWA SONS INV Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 17 million as compared to Rs 3 million in FY21, thereby witnessing an increase of 435.9%.
• Current assets rose 22% and stood at Rs 3 billion, while fixed assets rose 65% and stood at Rs 91 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 94 billion as against Rs 58 billion during FY21, thereby witnessing a growth of 63%.

NALWA SONS INV Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	51,056	79,392	55.5
Current Liabilities	Rs m	3	17	435.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	57,685	94,165	63.2
Current assets	Rs m	2,768	3,377	22.0
Fixed Assets	Rs m	54,918	90,789	65.3
Total Assets	Rs m	57,685	94,165	63.2

NALWA SONS INV Cash Flow Statement Analysis

• NALWA SONS INV's cash flow from operating activities (CFO) during FY22 stood at Rs 417 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -412 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 0 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 5 million from the Rs 4 million net cash flows seen during FY21.

NALWA SONS INV Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	496	417	-15.9%
Cash Flow from Investing Activities	Rs m	-477	-412	-
Cash Flow from Financing Activities	Rs m	-15	0	-
Net Cash Flow	Rs m	4	5	34.1%

Current Valuations for NALWA SONS INV

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 128.1, an improvement from the EPS of Rs 83.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,778.4, stands at 13.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.1 times, while the price to sales ratio stands at 9.8 times.
• The company's price to cash flow (P/CF) ratio stood at 12.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	126.7	181.1
TTM Earnings per share	Rs	83.9	128.1
Diluted earnings per share	Rs	84.0	128.2
Price to Cash Flow	x	12.4	12.6
TTM P/E ratio	x	12.5	13.8
Price / Book Value ratio	x	0.1	0.1
Market Cap	Rs m	4,325	8,269
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NALWA SONS INV

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 203.9x during FY22, from 895.8x during FY21. 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 19,968.3x during FY22, from 4,759.9x during FY21. 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 0.8% during FY22, from 0.8% during FY22. 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 1.0% during FY22, from 0.9% during FY21. 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 0.7% during FY22, from 0.7% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	895.8	203.9
Debtors’ Days	Days	0	0
Interest coverage	x	4,759.9	19,968.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.7	0.7
Return on equity	%	0.8	0.8
Return on capital employed	%	0.9	1.0

To see how NALWA SONS INV has performed over the last 5 years, please visit here.

NALWA SONS INV Share Price Performance

Over the last one year, NALWA SONS INV share price has moved up from Rs 1,046.1 to Rs 1,778.4, registering a gain of Rs 732.4 or around 70.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 22,368.3 (down 0.4%). Over the last one year it has moved up from 14,350.6 to 22,368.3, a gain of 8,018 points (up 55.9%).

Overall, the S&P BSE SENSEX is up 16.8% over the year.

(To know more, check out historical annual results for NALWA SONS INV and quarterly results for NALWA SONS INV)