NITTA GELATIN 2022-23 Annual Report Analysis

Fri, 21 Jul

NITTA GELATIN has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

NITTA GELATIN Income Statement Analysis

• Operating income during the year rose 11.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 81.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.6% in FY23 as against 12.7% in FY22.
• Depreciation charges decreased by 1.7% and finance costs decreased by 22.4% YoY, respectively.
• Other income declined by 82.1% YoY.
• Net profit for the year grew by 112.1% YoY.
• Net profit margins during the year grew from 6.9% in FY22 to 13.1% in FY23.

NITTA GELATIN Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,060	5,654	11.7%
Other income	Rs m	46	8	-82.1%
Total Revenues	Rs m	5,106	5,662	10.9%
Gross profit	Rs m	643	1,165	81.2%
Depreciation	Rs m	144	141	-1.7%
Interest	Rs m	54	42	-22.4%
Profit before tax	Rs m	492	991	101.5%
Tax	Rs m	143	252	75.9%
Profit after tax	Rs m	348	739	112.1%
Gross profit margin	%	12.7	20.6
Effective tax rate	%	29.1	25.4
Net profit margin	%	6.9	13.1

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NITTA GELATIN Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 827 million as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -33.7%.
• Long-term debt stood at Rs 69 million as compared to Rs 68 million during FY22, a growth of 1.4%.
• Current assets rose 8% and stood at Rs 2 billion, while fixed assets rose 4% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 6%.

NITTA GELATIN Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,009	2,676	33.2
Current Liabilities	Rs m	1,246	827	-33.7
Long-term Debt	Rs m	68	69	1.4
Total Liabilities	Rs m	3,452	3,671	6.3
Current assets	Rs m	2,044	2,211	8.2
Fixed Assets	Rs m	1,408	1,459	3.6
Total Assets	Rs m	3,452	3,671	6.3

NITTA GELATIN Cash Flow Statement Analysis

• NITTA GELATIN's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 491.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -183 million, an improvement of 29.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -546 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 281 million from the Rs 12 million net cash flows seen during FY22.

NITTA GELATIN Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	171	1,010	491.0%
Cash Flow from Investing Activities	Rs m	-142	-183	-
Cash Flow from Financing Activities	Rs m	-18	-546	-
Net Cash Flow	Rs m	12	281	2,306.3%

Current Valuations for NITTA GELATIN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 81.4, an improvement from the EPS of Rs 38.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 735.9, stands at 9.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 6.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	557.2	622.6
TTM Earnings per share	Rs	38.4	81.4
Diluted earnings per share	Rs	38.4	81.4
Price to Cash Flow	x	5.2	6.4
TTM P/E ratio	x	7.4	9.0
Price / Book Value ratio	x	1.1	2.1
Market Cap	Rs m	2,243	5,666
Dividends per share (Unadj.)	Rs	4.0	7.5

Ratio Analysis for NITTA GELATIN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY23, from 1.6x during FY22. 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 24.8x during FY23, from 10.2x during FY22. 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 27.6% during FY23, from 17.3% during FY23. 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 37.6% during FY23, from 26.3% during FY22. 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 21.3% during FY23, from 11.6% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.6	2.7
Debtors’ Days	Days	641	567
Interest coverage	x	10.2	24.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.6	21.3
Return on equity	%	17.3	27.6
Return on capital employed	%	26.3	37.6

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

NITTA GELATIN Share Price Performance

Over the last one year, NITTA GELATIN share price has moved up from Rs 329.2 to Rs 735.9, registering a gain of Rs 406.7 or around 123.6%.

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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