NIDHI GRANITES 2022-23 Annual Report Analysis

Sat, 1 Jul

NIDHI GRANITES 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.

NIDHI GRANITES Income Statement Analysis

• Operating income during the year rose 60.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.6% in FY23 as against 4.7% in FY22.
• Depreciation charges increased by 64.6% and finance costs increased by 93.5% YoY, respectively.
• Other income grew by 174.3% YoY.
• Net profit for the year grew by 43.3% YoY.
• Net profit margins during the year declined from 1.9% in FY22 to 1.7% in FY23.

NIDHI GRANITES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	158	253	60.0%
Other income	Rs m	1	4	174.3%
Total Revenues	Rs m	159	257	61.0%
Gross profit	Rs m	7	9	22.1%
Depreciation	Rs m	3	5	64.6%
Interest	Rs m	1	2	93.5%
Profit before tax	Rs m	5	6	25.6%
Tax	Rs m	2	2	-1.5%
Profit after tax	Rs m	3	4	43.3%
Gross profit margin	%	4.7	3.6
Effective tax rate	%	39.5	31.0
Net profit margin	%	1.9	1.7

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NIDHI GRANITES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 64 million as compared to Rs 33 million in FY22, thereby witnessing an increase of 91.1%.
• Current assets rose 99% and stood at Rs 139 million, while fixed assets rose 123% and stood at Rs 27 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 166 million as against Rs 82 million during FY22, thereby witnessing a growth of 102%.

NIDHI GRANITES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	24	84	245.1
Current Liabilities	Rs m	33	64	91.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	82	166	102.2
Current assets	Rs m	70	139	98.6
Fixed Assets	Rs m	12	27	122.5
Total Assets	Rs m	82	166	102.2

NIDHI GRANITES Cash Flow Statement Analysis

• NIDHI GRANITES's cash flow from operating activities (CFO) during FY23 stood at Rs -278 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -6 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 53 million, an improvement of 129% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -231 million from the Rs -8 million net cash flows seen during FY22.

NIDHI GRANITES 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	2	-278	-
Cash Flow from Investing Activities	Rs m	-33	-6	-
Cash Flow from Financing Activities	Rs m	23	53	128.8%
Net Cash Flow	Rs m	-8	-231	-

Current Valuations for NIDHI GRANITES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.6, an decline from the EPS of Rs 4.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 71.3, stands at 43.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 22.7 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	210.7	95.4
TTM Earnings per share	Rs	4.1	1.6
Diluted earnings per share	Rs	1.1	1.6
Price to Cash Flow	x	47.6	22.7
TTM P/E ratio	x	57.2	43.5
Price / Book Value ratio	x	2.5	2.4
Market Cap	Rs m	59	202
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NIDHI GRANITES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY23, from 2.1x 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 4.0x during FY23, from 5.7x 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 5.2% during FY23, from 12.6% 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 10.1% during FY23, from 25.2% 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 3.9% during FY23, from 5.0% 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	2.1	2.2
Debtors’ Days	Days	1,009	736
Interest coverage	x	5.7	4.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.0	3.9
Return on equity	%	12.6	5.2
Return on capital employed	%	25.2	10.1

To see how NIDHI GRANITES has performed over the last 5 years, please visit here.

NIDHI GRANITES Share Price Performance

Over the last one year, NIDHI GRANITES share price has moved up from Rs 0.0 to Rs 71.3, registering a gain of Rs 71.3 or around 0.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,161.2 (up 0.5%). Over the last one year it has moved up from 3,118.9 to 4,161.2, a gain of 1,042 points (up 33.4%).

Overall, the S&P BSE SENSEX is up 21.7% over the year.

(To know more, check out historical annual results for NIDHI GRANITES and quarterly results for NIDHI GRANITES)