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NILKAMAL 2020-21 Annual Report Analysis
Wed, 31 Mar

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



Potential 33x Opportunity: 3 Next-Generation Defence Stocks

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 1,950.3, stands at 26.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.7 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 6.5 10.7
TTM P/E ratio x 11.0 26.1
Price / Book Value ratio x 1.8 2.0
Market Cap Rs m 18,165 22,306
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 1,003.2 to Rs 1,950.3, registering a gain of Rs 947.2 or around 94.4%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Annual Report FAQs

What is the current share price of NILKAMAL?

NILKAMAL currently trades at Rs 2,120.9 per share. You can check out the latest share price performance of NILKAMAL here...

What was the revenue of NILKAMAL in FY21? How does it compare to earlier years?

The revenues of NILKAMAL stood at Rs 21,082 m in FY21, which was down -7.2% compared to Rs 22,716 m reported in FY20.

NILKAMAL's revenue has grown from Rs 18,891 m in FY17 to Rs 21,082 m in FY21.

Over the past 5 years, the revenue of NILKAMAL has grown at a CAGR of 2.8%.

What was the net profit of NILKAMAL in FY21? How does it compare to earlier years?

The net profit of NILKAMAL stood at Rs 1,115 m in FY21, which was down -18.1% compared to Rs 1,361 m reported in FY20.

This compares to a net profit of Rs 1,106 m in FY19 and a net profit of Rs 1,172 m in FY18.

Over the past 5 years, NILKAMAL net profit has grown at a CAGR of -1.6%.

What does the cash flow statement of NILKAMAL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of NILKAMAL reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 2,030 m as compared to Rs 2,519 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -1,209 m as compared to Rs -1,524 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -706 m as compared to Rs -997 m in FY20.

Here's the cash flow statement of NILKAMAL for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations1,1151,2071,7482,5192,030
From Investments-702-957-1,065-1,524-1,209
From Financial Activity-382-203-725-997-706
Net Cashflow342-4352127

What does the Key Ratio analysis of NILKAMAL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of NILKAMAL reveals:

  • Operating profit margins witnessed a fall and stood at 12.2% in FY21 as against 12.6% in FY20.
  • Net profit margins declined from 6.0% in FY20 to 5.3% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

Here's the ratio/financial analysis of NILKAMAL for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)12.411.69.112.612.2
Net Profit Margin (%)6.35.64.76.05.3
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of NILKAMAL

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