NAGARJUNA FERTILIZERS & CHEM. 2022-23 Annual Report Analysis

Fri, 1 Sep

NAGARJUNA FERTILIZERS & CHEM. 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.

NAGARJUNA FERTILIZERS & CHEM. Income Statement Analysis

• Operating income during the year rose 109.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 10.6% in FY23 as against 11.1% in FY22.
• Depreciation charges decreased by 3.4% and finance costs increased by 42.3% YoY, respectively.
• Other income grew by 109.2% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year grew from 25.6% in FY22 to 16.0% in FY23.

NAGARJUNA FERTILIZERS & CHEM. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	26,923	56,422	109.6%
Other income	Rs m	303	634	109.2%
Total Revenues	Rs m	27,227	57,056	109.6%
Gross profit	Rs m	-2,984	-5,954	NA
Depreciation	Rs m	821	793	-3.4%
Interest	Rs m	3,696	5,259	42.3%
Profit before tax	Rs m	-7,198	-11,372	NA
Tax	Rs m	-307	-2,371	NA
Profit after tax	Rs m	-6,890	-9,001	NA
Gross profit margin	%	-11.1	-10.6
Effective tax rate	%	4.3	20.8
Net profit margin	%	-25.6	-16.0

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NAGARJUNA FERTILIZERS & CHEM. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 39 billion as compared to Rs 36 billion in FY22, thereby witnessing an increase of 9.2%.
• Long-term debt down at Rs 121 million as compared to Rs 218 million during FY22, a fall of 44.4%.
• Current assets fell 9% and stood at Rs 6 billion, while fixed assets fell 36% and stood at Rs 14 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 19 billion as against Rs 28 billion during FY22, thereby witnessing a fall of 30%.

NAGARJUNA FERTILIZERS & CHEM. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-11,725	-20,698	NA
Current Liabilities	Rs m	35,887	39,190	9.2
Long-term Debt	Rs m	218	121	-44.4
Total Liabilities	Rs m	27,571	19,418	-29.6
Current assets	Rs m	6,459	5,846	-9.5
Fixed Assets	Rs m	21,112	13,573	-35.7
Total Assets	Rs m	27,571	19,418	-29.6

NAGARJUNA FERTILIZERS & CHEM. Cash Flow Statement Analysis

• NAGARJUNA FERTILIZERS & CHEM.'s cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 273.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -785 million from the Rs -991 million net cash flows seen during FY22.

NAGARJUNA FERTILIZERS & CHEM. 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	649	2,420	273.1%
Cash Flow from Investing Activities	Rs m	193	-5	-
Cash Flow from Financing Activities	Rs m	-1,832	-3,199	-
Net Cash Flow	Rs m	-991	-785	-

Current Valuations for NAGARJUNA FERTILIZERS & CHEM.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -15.1, an decline from the EPS of Rs -11.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8.5, stands at -0.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.2 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at -1.0 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	45.0	94.3
TTM Earnings per share	Rs	-11.5	-15.1
Diluted earnings per share	Rs	-11.5	-15.1
Price to Cash Flow	x	-1.3	-1.0
TTM P/E ratio	x	-1.1	-0.3
Price / Book Value ratio	x	-0.7	-0.4
Market Cap	Rs m	7,691	8,068
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NAGARJUNA FERTILIZERS & CHEM.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.1x during FY23, from 0.2x 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 deteriorated and stood at -1.2x during FY23, from -0.9x 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 43.5% during FY23, from 58.8% 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 29.7% during FY23, from 30.4% 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 declined and down at -19.3% 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	0.2	0.1
Debtors’ Days	Days	657	257
Interest coverage	x	-0.9	-1.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-11.6	-19.3
Return on equity	%	58.8	43.5
Return on capital employed	%	30.4	29.7

To see how NAGARJUNA FERTILIZERS & CHEM. has performed over the last 5 years, please visit here.

NAGARJUNA FERTILIZERS & CHEM. Share Price Performance

Over the last one year, NAGARJUNA FERTILIZERS & CHEM. share price has moved down from Rs 8.5 to Rs 8.5, registering a loss of Rs 0.0 or around 0.1%.

Overall, the S&P BSE SENSEX is up 8.9% over the year.

(To know more, check out historical annual results for NAGARJUNA FERTILIZERS & CHEM. and quarterly results for NAGARJUNA FERTILIZERS & CHEM.)