NITESH ESTATES 2022-23 Annual Report Analysis

Tue, 20 Jun

NITESH ESTATES 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.

NITESH ESTATES Income Statement Analysis

• Operating income during the year rose 5.9% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 115.2% in FY23 as against 167.2% in FY22.
• Depreciation charges increased by 7.1% and finance costs decreased by 31.9% YoY, respectively.
• Other income declined by 42.3% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 69.2% in FY22 to 74.8% in FY23.

NITESH ESTATES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	943	998	5.9%
Other income	Rs m	1,876	1,082	-42.3%
Total Revenues	Rs m	2,819	2,080	-26.2%
Gross profit	Rs m	-1,577	-1,151	NA
Depreciation	Rs m	1	2	7.1%
Interest	Rs m	917	624	-31.9%
Profit before tax	Rs m	-619	-695	NA
Tax	Rs m	34	52	54.4%
Profit after tax	Rs m	-653	-747	NA
Gross profit margin	%	-167.2	-115.2
Effective tax rate	%	-5.5	-7.5
Net profit margin	%	-69.2	-74.8

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NITESH ESTATES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 20 billion as compared to Rs 21 billion in FY22, thereby witnessing an decrease of -2.0%.
• Current assets fell 14% and stood at Rs 8 billion, while fixed assets rose 15% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 10 billion during FY22, thereby witnessing a fall of 11%.

NITESH ESTATES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-10,258	-11,005	NA
Current Liabilities	Rs m	20,635	20,226	-2.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	10,392	9,234	-11.1
Current assets	Rs m	9,488	8,191	-13.7
Fixed Assets	Rs m	904	1,044	15.5
Total Assets	Rs m	10,392	9,234	-11.1

NITESH ESTATES Cash Flow Statement Analysis

• NITESH ESTATES's cash flow from operating activities (CFO) during FY23 stood at Rs 251 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 0 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -229 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 22 million from the Rs -3 million net cash flows seen during FY22.

NITESH ESTATES 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	-25	251	-
Cash Flow from Investing Activities	Rs m	-4	0	-
Cash Flow from Financing Activities	Rs m	25	-229	-
Net Cash Flow	Rs m	-3	22	-

Current Valuations for NITESH ESTATES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.1, an decline from the EPS of Rs -4.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2.9, stands at -0.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at -0.6 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	6.5	6.8
TTM Earnings per share	Rs	-4.5	-5.1
Diluted earnings per share	Rs	-4.5	-5.1
Price to Cash Flow	x	-0.7	-0.6
TTM P/E ratio	x	-0.7	-0.6
Price / Book Value ratio	x	-0.1	0.0
Market Cap	Rs m	586	441
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NITESH ESTATES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY23, from 0.5x 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 -0.1x during FY23, from 0.3x 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 6.8% during FY23, from 6.4% 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 0.6% during FY23, from -2.9% 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 declined and down at -1.3% during FY23, from 2.5% 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	0.5	0.4
Debtors’ Days	Days	756	59
Interest coverage	x	0.3	-0.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.5	-1.3
Return on equity	%	6.4	6.8
Return on capital employed	%	-2.9	0.6

To see how NITESH ESTATES has performed over the last 5 years, please visit here.

NITESH ESTATES Share Price Performance

Over the last one year, NITESH ESTATES share price has moved up from Rs 2.3 to Rs 2.9, registering a gain of Rs 0.5 or around 21.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 4,132.2 (up 0.6%). Over the last one year it has moved up from 2,951.5 to 4,132.2, a gain of 1,181 points (up 40.0%).

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for NITESH ESTATES and quarterly results for NITESH ESTATES)