NILKAMAL 2018-19 Annual Report Analysis

Sun, 31 Mar

NILKAMAL has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

NILKAMAL Income Statement Analysis

• Operating income during the year rose 13.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 10.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.1% in FY19 as against 11.6% in FY18.
• Depreciation charges increased by 2.3% and finance costs increased by 17.9% YoY, respectively.
• Other income grew by 226.6% YoY.
• Net profit for the year declined by 5.6% YoY.
• Net profit margins during the year declined from 5.6% in FY18 to 4.7% in FY19.

NILKAMAL Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	20,873	23,624	13.2%
Other income	Rs m	40	130	226.6%
Total Revenues	Rs m	20,912	23,754	13.6%
Gross profit	Rs m	2,422	2,159	-10.8%
Depreciation	Rs m	505	517	2.3%
Interest	Rs m	156	183	17.9%
Profit before tax	Rs m	1,801	1,589	-11.8%
Tax	Rs m	630	483	-23.3%
Profit after tax	Rs m	1,172	1,106	-5.6%
Gross profit margin	%	11.6	9.1
Effective tax rate	%	35.0	30.4
Net profit margin	%	5.6	4.7

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NILKAMAL Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 2 billion as compared to Rs 3 billion in FY18, thereby witnessing an decrease of -32.2%.
• Long-term debt stood at Rs 444 million as compared to Rs 0 million during FY18, a fall of 0.0%.
• Current assets fell 3% and stood at Rs 8 billion, while fixed assets rose 16% and stood at Rs 5 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 13 billion as against Rs 12 billion during FY18, thereby witnessing a growth of 4%.

NILKAMAL Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	8,486	9,412	10.9
Current Liabilities	Rs m	3,188	2,160	-32.2
Long-term Debt	Rs m	0	444	0.0
Total Liabilities	Rs m	12,482	12,937	3.6
Current assets	Rs m	8,032	7,795	-3.0
Fixed Assets	Rs m	4,449	5,142	15.6
Total Assets	Rs m	12,482	12,937	3.6

NILKAMAL Cash Flow Statement Analysis

• NILKAMAL's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion, an improvement of 44.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -1 billion, an improvement of 11.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -725 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -43 million from the Rs 42 million net cash flows seen during FY18.

NILKAMAL Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	1,207	1,748	44.8%
Cash Flow from Investing Activities	Rs m	-957	-1,065	-
Cash Flow from Financing Activities	Rs m	-203	-725	-
Net Cash Flow	Rs m	42	-43	-

Current Valuations for NILKAMAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 74.2, an decline from the EPS of Rs 78.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,432.0, stands at 19.2 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 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 15.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	1,399.0	1,583.4
TTM Earnings per share	Rs	78.5	74.2
Diluted earnings per share	Rs	78.5	74.1
Price to Cash Flow	x	13.5	15.5
TTM P/E ratio	x	19.4	19.2
Price / Book Value ratio	x	3.3	2.7
Market Cap	Rs m	28,099	25,092
Dividends per share (Unadj.)	Rs	13.0	13.0

Ratio Analysis for NILKAMAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.6x during FY19, from 2.5x during FY18. 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 9.7x during FY19, from 12.6x during FY18. 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 11.8% during FY19, from 13.8% during FY19. 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 18.0% during FY19, from 23.1% during FY18. 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 10.0% during FY19, from 10.6% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	2.5	3.6
Debtors’ Days	Days	595	477
Interest coverage	x	12.6	9.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.6	10.0
Return on equity	%	13.8	11.8
Return on capital employed	%	23.1	18.0

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

NILKAMAL Share Price Performance

Over the last one year, NILKAMAL share price has moved down from Rs 1,521.3 to Rs 1,432.0, registering a loss of Rs 89.3 or around 5.9%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Read: Latest Annual Report Analysis of NILKAMAL