NBCC (INDIA) 2020-21 Annual Report Analysis

Wed, 31 Mar

NBCC (INDIA) has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

NBCC (INDIA) Income Statement Analysis

• Operating income during the year fell 15.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 1.8% in FY21 as against 1.2% in FY20.
• Depreciation charges decreased by 14.4% and finance costs decreased by 11.2% YoY, respectively.
• Other income declined by 13.9% YoY.
• Net profit for the year grew by 138.8% YoY.
• Net profit margins during the year grew from 1.2% in FY20 to 3.5% in FY21.

NBCC (INDIA) Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	80,871	68,321	-15.5%
Other income	Rs m	4,507	3,879	-13.9%
Total Revenues	Rs m	85,377	72,200	-15.4%
Gross profit	Rs m	1,009	1,258	24.7%
Depreciation	Rs m	65	56	-14.4%
Interest	Rs m	2,488	2,209	-11.2%
Profit before tax	Rs m	2,963	2,873	-3.0%
Tax	Rs m	1,973	509	-74.2%
Profit after tax	Rs m	990	2,364	138.8%
Gross profit margin	%	1.2	1.8
Effective tax rate	%	66.6	17.7
Net profit margin	%	1.2	3.5

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NBCC (INDIA) Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 109 billion as compared to Rs 105 billion in FY20, thereby witnessing an increase of 4.4%.
• Current assets rose 6% and stood at Rs 111 billion, while fixed assets fell 0% and stood at Rs 17 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 128 billion as against Rs 121 billion during FY20, thereby witnessing a growth of 5%.

NBCC (INDIA) Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	14,502	16,372	12.9
Current Liabilities	Rs m	104,710	109,345	4.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	121,267	127,906	5.5
Current assets	Rs m	104,658	111,326	6.4
Fixed Assets	Rs m	16,609	16,581	-0.2
Total Assets	Rs m	121,267	127,906	5.5

NBCC (INDIA) Cash Flow Statement Analysis

• NBCC (INDIA)'s cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion, an improvement of 281.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 2 billion, an improvement of 101.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -405 million, an improvement of 75% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 6 billion from the Rs 413 million net cash flows seen during FY20.

NBCC (INDIA) Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	1,128	4,306	281.6%
Cash Flow from Investing Activities	Rs m	881	1,778	101.8%
Cash Flow from Financing Activities	Rs m	-1,597	-405	-
Net Cash Flow	Rs m	413	5,679	1,276.3%

Current Valuations for NBCC (INDIA)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an improvement from the EPS of Rs 0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 46.6, stands at 35.5 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 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 26.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	44.9	38.0
TTM Earnings per share	Rs	0.6	1.3
Diluted earnings per share	Rs	0.6	1.3
Price to Cash Flow	x	27.9	26.0
TTM P/E ratio	x	29.7	35.5
Price / Book Value ratio	x	5.1	3.8
Market Cap	Rs m	73,800	62,955
Dividends per share (Unadj.)	Rs	0.1	0.5

Ratio Analysis for NBCC (INDIA)

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY21, from 1.0x during FY20. 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 2.3x during FY21, from 2.2x during FY20. 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 14.4% during FY21, from 6.8% during FY21. 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 31.0% during FY21, from 37.6% during FY20. 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 3.6% during FY21, from 2.9% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.0	1.0
Debtors’ Days	Days	837	1,106
Interest coverage	x	2.2	2.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.9	3.6
Return on equity	%	6.8	14.4
Return on capital employed	%	37.6	31.0

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 16.4 to Rs 46.6, registering a gain of Rs 30.3 or around 185.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,670.3 (up 1.9%). Over the last one year it has moved up from 1,353.7 to 2,670.3, a gain of 1,317 points (up 97.3%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of NBCC (INDIA)