NILKAMAL 2022-23 Annual Report Analysis

Thu, 15 Jun

NILKAMAL 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.

NILKAMAL Income Statement Analysis

• Operating income during the year rose 14.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 39.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.2% in FY23 as against 8.4% in FY22.
• Depreciation charges increased by 12.2% and finance costs increased by 29.3% YoY, respectively.
• Other income declined by 7.1% YoY.
• Net profit for the year grew by 60.6% YoY.
• Net profit margins during the year grew from 3.1% in FY22 to 4.3% in FY23.

NILKAMAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	27,301	31,309	14.7%
Other income	Rs m	119	110	-7.1%
Total Revenues	Rs m	27,420	31,419	14.6%
Gross profit	Rs m	2,295	3,192	39.1%
Depreciation	Rs m	1,010	1,134	12.2%
Interest	Rs m	309	399	29.3%
Profit before tax	Rs m	1,095	1,770	61.7%
Tax	Rs m	261	430	65.0%
Profit after tax	Rs m	834	1,340	60.6%
Gross profit margin	%	8.4	10.2
Effective tax rate	%	23.8	24.3
Net profit margin	%	3.1	4.3

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NILKAMAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -7.7%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY22, a growth of 37.1%.
• Current assets rose 4% and stood at Rs 12 billion, while fixed assets rose 10% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 21 billion as against Rs 20 billion during FY22, thereby witnessing a growth of 6%.

NILKAMAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	12,015	13,142	9.4
Current Liabilities	Rs m	4,024	3,714	-7.7
Long-term Debt	Rs m	1,170	1,603	37.1
Total Liabilities	Rs m	19,533	20,754	6.3
Current assets	Rs m	11,451	11,883	3.8
Fixed Assets	Rs m	8,082	8,871	9.8
Total Assets	Rs m	19,533	20,754	6.3

NILKAMAL Cash Flow Statement Analysis

• NILKAMAL's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 175.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 85.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -715 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -454 million from the Rs 343 million net cash flows seen during FY22.

NILKAMAL 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	691	1,900	175.1%
Cash Flow from Investing Activities	Rs m	-889	-1,646	-
Cash Flow from Financing Activities	Rs m	596	-715	-
Net Cash Flow	Rs m	343	-454	-

Current Valuations for NILKAMAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 89.8, an improvement from the EPS of Rs 55.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,377.5, stands at 28.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 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	1,829.8	2,098.4
TTM Earnings per share	Rs	55.9	89.8
Diluted earnings per share	Rs	55.9	89.8
Price to Cash Flow	x	16.4	12.2
TTM P/E ratio	x	39.0	28.1
Price / Book Value ratio	x	3.1	2.3
Market Cap	Rs m	37,352	30,240
Dividends per share (Unadj.)	Rs	15.0	20.0

Ratio Analysis for NILKAMAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.2x during FY23, from 2.8x 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 improved and stood at 5.4x during FY23, from 4.5x 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 10.2% during FY23, from 6.9% 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 14.7% during FY23, from 10.6% 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 improved and stood at 8.4% during FY23, from 5.9% 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	2.8	3.2
Debtors’ Days	Days	420	505
Interest coverage	x	4.5	5.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.9	8.4
Return on equity	%	6.9	10.2
Return on capital employed	%	10.6	14.7

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 1,812.9 to Rs 2,377.5, registering a gain of Rs 564.6 or around 31.1%.

Overall, the S&P BSE SENSEX is up 19.4% over the year.

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