NBCC (INDIA) 2021-22 Annual Report Analysis

Sat, 17 Sep

NBCC (INDIA) has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

NBCC (INDIA) Income Statement Analysis

• Operating income during the year rose 10.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.7% in FY22 as against 1.9% in FY21.
• Depreciation charges decreased by 17.9% and finance costs decreased by 18.9% YoY, respectively.
• Other income declined by 5.7% YoY.
• Net profit for the year declined by 0.9% YoY.
• Net profit margins during the year declined from 3.5% in FY21 to 3.1% in FY22.

NBCC (INDIA) Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	69,534	76,906	10.6%
Other income	Rs m	3,879	3,657	-5.7%
Total Revenues	Rs m	73,413	80,563	9.7%
Gross profit	Rs m	1,308	1,327	1.4%
Depreciation	Rs m	56	46	-17.9%
Interest	Rs m	2,209	1,791	-18.9%
Profit before tax	Rs m	2,923	3,147	7.7%
Tax	Rs m	522	768	47.2%
Profit after tax	Rs m	2,401	2,379	-0.9%
Gross profit margin	%	1.9	1.7
Effective tax rate	%	17.8	24.4
Net profit margin	%	3.5	3.1

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NBCC (INDIA) Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 111 billion as compared to Rs 111 billion in FY21, thereby witnessing an decrease of -0.7%.
• Current assets rose 2% and stood at Rs 116 billion, while fixed assets fell 8% and stood at Rs 15 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 131 billion as against Rs 130 billion during FY21, thereby witnessing a growth of 1%.

NBCC (INDIA) Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	16,431	17,677	7.6
Current Liabilities	Rs m	111,375	110,617	-0.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	130,016	131,107	0.8
Current assets	Rs m	113,245	115,740	2.2
Fixed Assets	Rs m	16,646	15,245	-8.4
Total Assets	Rs m	130,016	131,107	0.8

NBCC (INDIA) Cash Flow Statement Analysis

• NBCC (INDIA)'s cash flow from operating activities (CFO) during FY22 stood at Rs 799 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 333 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -947 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 185 million from the Rs 6 billion net cash flows seen during FY21.

NBCC (INDIA) Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	4,563	799	-82.5%
Cash Flow from Investing Activities	Rs m	1,513	333	-78.0%
Cash Flow from Financing Activities	Rs m	-405	-947	-
Net Cash Flow	Rs m	5,672	185	-96.7%

Current Valuations for NBCC (INDIA)

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an decline from the EPS of Rs 1.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 34.2, stands at 31.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 34.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	38.6	42.7
TTM Earnings per share	Rs	1.3	1.3
Diluted earnings per share	Rs	1.3	1.3
Price to Cash Flow	x	34.1	34.9
TTM P/E ratio	x	35.1	31.2
Price / Book Value ratio	x	3.8	4.8
Market Cap	Rs m	62,955	84,600
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for NBCC (INDIA)

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY22, from 1.0x during FY21. 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 2.8x during FY22, from 2.3x during FY21. 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 13.5% during FY22, from 14.6% during FY22. 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 27.9% during FY22, from 31.2% during FY21. 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 3.2% during FY22, from 3.5% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.0	1.0
Debtors’ Days	Days	1,087	959
Interest coverage	x	2.3	2.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.5	3.2
Return on equity	%	14.6	13.5
Return on capital employed	%	31.2	27.9

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 down from Rs 44.1 to Rs 34.2, registering a loss of Rs 9.9 or around 22.5%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,622.1 (down 3.5%). Over the last one year it has moved up from 3,299.3 to 3,622.1, a gain of 323 points (up 9.8%).

Overall, the S&P BSE SENSEX is up 0.2% 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)