NAVKAR CORP. 2022-23 Annual Report Analysis

Wed, 19 Jul

NAVKAR CORP. 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.

NAVKAR CORP. Income Statement Analysis

• Operating income during the year fell 2.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.8% in FY23 as against 19.8% in FY22.
• Depreciation charges decreased by 3.6% and finance costs decreased by 4.7% YoY, respectively.
• Other income grew by 211.0% YoY.
• Net profit for the year grew by 93.3% YoY.
• Net profit margins during the year grew from 8.3% in FY22 to 16.5% in FY23.

NAVKAR CORP. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,531	4,415	-2.6%
Other income	Rs m	29	90	211.0%
Total Revenues	Rs m	4,560	4,505	-1.2%
Gross profit	Rs m	896	1,050	17.2%
Depreciation	Rs m	278	268	-3.6%
Interest	Rs m	199	190	-4.7%
Profit before tax	Rs m	448	682	52.3%
Tax	Rs m	70	-48	NA
Profit after tax	Rs m	378	730	93.3%
Gross profit margin	%	19.8	23.8
Effective tax rate	%	15.7	-7.0
Net profit margin	%	8.3	16.5

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NAVKAR CORP. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 570 million as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -74.1%.
• Long-term debt down at Rs 439 million as compared to Rs 5 billion during FY22, a fall of 91.7%.
• Current assets rose 17% and stood at Rs 2 billion, while fixed assets fell 23% and stood at Rs 19 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 21 billion as against Rs 27 billion during FY22, thereby witnessing a fall of 20%.

NAVKAR CORP. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	18,821	19,765	5.0
Current Liabilities	Rs m	2,201	570	-74.1
Long-term Debt	Rs m	5,295	439	-91.7
Total Liabilities	Rs m	26,842	21,410	-20.2
Current assets	Rs m	2,029	2,379	17.2
Fixed Assets	Rs m	24,813	19,032	-23.3
Total Assets	Rs m	26,842	21,410	-20.2

NAVKAR CORP. Cash Flow Statement Analysis

• NAVKAR CORP.'s cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 0.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 885 million from the Rs -39 million net cash flows seen during FY22.

NAVKAR CORP. 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	1,246	1,256	0.8%
Cash Flow from Investing Activities	Rs m	-1,516	6,483	-
Cash Flow from Financing Activities	Rs m	231	-6,854	-
Net Cash Flow	Rs m	-39	885	-

Current Valuations for NAVKAR CORP.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.8, an improvement from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 60.0, stands at 10.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 9.2 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	30.1	29.3
TTM Earnings per share	Rs	2.5	4.8
Diluted earnings per share	Rs	2.5	4.8
Price to Cash Flow	x	7.3	9.2
TTM P/E ratio	x	11.0	10.8
Price / Book Value ratio	x	0.3	0.5
Market Cap	Rs m	6,412	9,204
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NAVKAR CORP.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.2x during FY23, from 0.9x 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 4.6x during FY23, from 3.3x 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 3.7% during FY23, from 2.0% 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 4.3% during FY23, from 2.7% 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 4.3% during FY23, from 2.1% 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	0.9	4.2
Debtors’ Days	Days	731	247
Interest coverage	x	3.3	4.6
Debt to equity ratio	x	0.3	0.0
Return on assets	%	2.1	4.3
Return on equity	%	2.0	3.7
Return on capital employed	%	2.7	4.3

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

NAVKAR CORP. Share Price Performance

Over the last one year, NAVKAR CORP. share price has moved down from Rs 65.1 to Rs 60.0, registering a loss of Rs 5.1 or around 7.8%.

Overall, the S&P BSE SENSEX is up 22.7% over the year.

(To know more, check out historical annual results for NAVKAR CORP. and quarterly results for NAVKAR CORP.)