NAVA 2022-23 Annual Report Analysis

Thu, 13 Jul

NAVA 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.

NAVA Income Statement Analysis

• Operating income during the year fell 52.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 69.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.5% in FY23 as against 36.6% in FY22.
• Depreciation charges decreased by 89.2% and finance costs decreased by 96.3% YoY, respectively.
• Other income declined by 79.6% YoY.
• Net profit for the year declined by 43.3% YoY.
• Net profit margins during the year grew from 16.9% in FY22 to 20.0% in FY23.

NAVA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	33,477	16,003	-52.2%
Other income	Rs m	2,978	609	-79.6%
Total Revenues	Rs m	36,454	16,612	-54.4%
Gross profit	Rs m	12,246	3,768	-69.2%
Depreciation	Rs m	2,953	319	-89.2%
Interest	Rs m	3,381	127	-96.3%
Profit before tax	Rs m	8,889	3,932	-55.8%
Tax	Rs m	3,231	724	-77.6%
Profit after tax	Rs m	5,658	3,208	-43.3%
Gross profit margin	%	36.6	23.5
Effective tax rate	%	36.3	18.4
Net profit margin	%	16.9	20.0

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NAVA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 23 billion in FY22, thereby witnessing an decrease of -89.1%.
• Long-term debt down at Rs 655 million as compared to Rs 19 billion during FY22, a fall of 96.5%.
• Current assets fell 50% and stood at Rs 13 billion, while fixed assets fell 68% and stood at Rs 26 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 39 billion as against Rs 107 billion during FY22, thereby witnessing a fall of 63%.

NAVA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	49,532	35,334	-28.7
Current Liabilities	Rs m	22,631	2,464	-89.1
Long-term Debt	Rs m	18,556	655	-96.5
Total Liabilities	Rs m	107,009	39,322	-63.3
Current assets	Rs m	25,412	12,659	-50.2
Fixed Assets	Rs m	81,597	26,481	-67.5
Total Assets	Rs m	107,009	39,322	-63.3

NAVA Cash Flow Statement Analysis

• NAVA's cash flow from operating activities (CFO) during FY23 stood at Rs 483 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 215 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion, an improvement of 62% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -856 million from the Rs -192 million net cash flows seen during FY22.

NAVA 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	6,082	483	-92.1%
Cash Flow from Investing Activities	Rs m	-2,219	215	-
Cash Flow from Financing Activities	Rs m	-4,150	-1,573	-
Net Cash Flow	Rs m	-192	-856	-

Current Valuations for NAVA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.1, an decline from the EPS of Rs 39.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 311.7, stands at 3.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 8.4 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	230.7	110.3
TTM Earnings per share	Rs	39.0	22.1
Diluted earnings per share	Rs	39.0	22.1
Price to Cash Flow	x	2.4	8.4
TTM P/E ratio	x	3.6	3.7
Price / Book Value ratio	x	0.3	0.8
Market Cap	Rs m	16,005	29,561
Dividends per share (Unadj.)	Rs	6.0	6.0

Ratio Analysis for NAVA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.1x during FY23, from 1.1x 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 32.1x during FY23, from 3.6x 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 declined and down at 9.1% during FY23, from 11.4% 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 declined and down at 11.3% during FY23, from 18.0% 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 8.5% during FY23, from 8.4% 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	1.1	5.1
Debtors’ Days	Days	1,172	502
Interest coverage	x	3.6	32.1
Debt to equity ratio	x	0.4	0.0
Return on assets	%	8.4	8.5
Return on equity	%	11.4	9.1
Return on capital employed	%	18.0	11.3

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

NAVA Share Price Performance

Over the last one year, NAVA share price has moved up from Rs 181.6 to Rs 311.7, registering a gain of Rs 130.1 or around 71.6%.

Overall, the S&P BSE SENSEX is up 20.2% over the year.

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