NILKAMAL 2020-21 Annual Report Analysis

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NILKAMAL 2020-21 Annual Report Analysis
Mon, 6 Sep

NILKAMAL 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.

NILKAMAL Income Statement Analysis

  • Operating income during the year fell 7.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 9.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.2% in FY21 as against 12.6% in FY20.
  • Depreciation charges increased by 3.1% and finance costs decreased by 9.2% YoY, respectively.
  • Other income grew by 11.1% YoY.
  • Net profit for the year declined by 18.1% YoY.
  • Net profit margins during the year declined from 6.0% in FY20 to 5.3% in FY21.

NILKAMAL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 22,572 20,922 -7.3%
Other income Rs m 144 160 11.1%
Total Revenues Rs m 22,716 21,082 -7.2%
Gross profit Rs m 2,839 2,558 -9.9%
Depreciation Rs m 942 972 3.1%
Interest Rs m 288 262 -9.2%
Profit before tax Rs m 1,753 1,485 -15.3%
Tax Rs m 391 370 -5.6%
Profit after tax Rs m 1,361 1,115 -18.1%
Gross profit margin % 12.6 12.2
Effective tax rate % 22.3 24.9
Net profit margin % 6.0 5.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Revealing this Monday: A Potentially Life-Changing Opportunity

NILKAMAL Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 19.2%.
  • Long-term debt down at Rs 285 million as compared to Rs 479 million during FY20, a fall of 40.4%.
  • Current assets rose 16% and stood at Rs 10 billion, while fixed assets rose 5% and stood at Rs 7 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 17 billion as against Rs 16 billion during FY20, thereby witnessing a growth of 11%.

NILKAMAL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 10,321 11,394 10.4
 
Current Liabilities Rs m 2,662 3,173 19.2
Long-term Debt Rs m 479 285 -40.4
Total Liabilities Rs m 15,509 17,238 11.1
 
Current assets Rs m 8,599 9,988 16.2
Fixed Assets Rs m 6,911 7,250 4.9
Total Assets Rs m 15,509 17,238 11.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



NILKAMAL Cash Flow Statement Analysis

  • NILKAMAL's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -706 million, an improvement of 29% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 127 million from the Rs 52 million net cash flows seen during FY20.

NILKAMAL 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 2,519 2,030 -19.4%
Cash Flow from Investing Activities Rs m -1,524 -1,209 -
Cash Flow from Financing Activities Rs m -997 -706 -
Net Cash Flow Rs m 52 127 141.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for NILKAMAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 74.7, an decline from the EPS of Rs 91.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,803.0, stands at 29.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.0 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 1,512.9 1,402.3
TTM Earnings per share Rs 91.3 74.7
Diluted earnings per share Rs 91.2 74.7
Price to Cash Flow x 18.2 20.0
TTM P/E ratio x 29.7 29.7
Price / Book Value ratio x 1.8 2.0
Market Cap Rs m 41,828 41,828
Dividends per share (Unadj.) Rs 15.0 15.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for NILKAMAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 3.1x during FY21, from 3.2x 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 deteriorated and stood at 6.7x during FY21, from 7.1x 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 declined and down at 9.8% during FY21, from 13.2% 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 15.0% during FY21, from 18.9% 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 declined and down at 8.0% during FY21, from 10.6% 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 3.2 3.1
Debtors’ Days Days 526 537
Interest coverage x 7.1 6.7
Debt to equity ratio x 0.0 0.0
Return on assets % 10.6 8.0
Return on equity % 13.2 9.8
Return on capital employed % 18.9 15.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 up from Rs 1,276.2 to Rs 2,803.0, registering a gain of Rs 1,526.9 or around 119.6%.

Overall, the S&P BSE SENSEX is up 49.2% over the year.

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

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Related Views on News

NILKAMAL 2020-21 Annual Report Analysis (Annual Result Update)

Oct 18, 2021 | Updated on Oct 18, 2021

Here's an analysis of the annual report of NILKAMAL for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of NILKAMAL. Also includes updates on the valuation of NILKAMAL.

NILKAMAL Announces Quarterly Results (3QFY21); Net Profit Up 88.0% (Quarterly Result Update)

Feb 11, 2021 | Updated on Feb 11, 2021

For the quarter ended December 2020, NILKAMAL has posted a net profit of Rs 519 m (up 88.0% YoY). Sales on the other hand came in at Rs 6 bn (up 8.4% YoY). Read on for a complete analysis of NILKAMAL's quarterly results.

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