NBCC (INDIA) 2022-23 Annual Report Analysis

Wed, 13 Sep

NBCC (INDIA) 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.

NBCC (INDIA) Income Statement Analysis

• Operating income during the year rose 13.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.0% in FY23 as against 1.7% in FY22.
• Depreciation charges increased by 14.1% and finance costs increased by 6.9% YoY, respectively.
• Other income grew by 7.9% YoY.
• Net profit for the year grew by 16.8% YoY.
• Net profit margins during the year grew from 3.1% in FY22 to 3.2% in FY23.

NBCC (INDIA) Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	76,906	87,544	13.8%
Other income	Rs m	3,638	3,925	7.9%
Total Revenues	Rs m	80,545	91,469	13.6%
Gross profit	Rs m	1,345	1,760	30.8%
Depreciation	Rs m	46	52	14.1%
Interest	Rs m	1,791	1,913	6.9%
Profit before tax	Rs m	3,147	3,719	18.2%
Tax	Rs m	768	939	22.2%
Profit after tax	Rs m	2,379	2,780	16.8%
Gross profit margin	%	1.7	2.0
Effective tax rate	%	24.4	25.2
Net profit margin	%	3.1	3.2

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NBCC (INDIA) Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 103 billion as compared to Rs 111 billion in FY22, thereby witnessing an decrease of -6.7%.
• Current assets fell 7% and stood at Rs 108 billion, while fixed assets rose 17% and stood at Rs 18 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 125 billion as against Rs 131 billion during FY22, thereby witnessing a fall of 4%.

NBCC (INDIA) Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	17,677	19,445	10.0
Current Liabilities	Rs m	110,585	103,126	-6.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	131,074	125,443	-4.3
Current assets	Rs m	115,708	107,528	-7.1
Fixed Assets	Rs m	15,245	17,831	17.0
Total Assets	Rs m	131,074	125,443	-4.3

NBCC (INDIA) Cash Flow Statement Analysis

• NBCC (INDIA)'s cash flow from operating activities (CFO) during FY23 stood at Rs -4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 3 billion, an improvement of 915.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -903 million, an improvement of 5% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 billion from the Rs 185 million net cash flows seen during FY22.

NBCC (INDIA) 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	799	-4,403	-
Cash Flow from Investing Activities	Rs m	333	3,385	915.5%
Cash Flow from Financing Activities	Rs m	-947	-903	-
Net Cash Flow	Rs m	185	-1,921	-

Current Valuations for NBCC (INDIA)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.5, an improvement from the EPS of Rs 1.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 54.9, stands at 27.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 22.4 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	42.7	48.6
TTM Earnings per share	Rs	1.3	1.5
Diluted earnings per share	Rs	1.3	1.5
Price to Cash Flow	x	26.9	22.4
TTM P/E ratio	x	27.4	27.4
Price / Book Value ratio	x	4.8	3.3
Market Cap	Rs m	84,600	63,450
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for NBCC (INDIA)

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.0x 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 2.9x during FY23, from 2.8x 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 14.3% during FY23, from 13.5% 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 29.0% during FY23, from 27.9% 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 3.7% during FY23, from 3.2% 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	1.0	1.0
Debtors’ Days	Days	959	811
Interest coverage	x	2.8	2.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.2	3.7
Return on equity	%	13.5	14.3
Return on capital employed	%	27.9	29.0

To see how NBCC (INDIA) has performed over the last 5 years, please visit here.

NBCC (INDIA) Share Price Performance

Over the last one year, NBCC (INDIA) share price has moved up from Rs 35.7 to Rs 54.9, registering a gain of Rs 19.3 or around 54.1%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,582.2 (down 0.8%). Over the last one year it has moved up from 3,818.5 to 4,582.2, a gain of 764 points (up 20.0%).

Overall, the S&P BSE SENSEX is up 12.0% over the year.

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