NITCO 2018-19 Annual Report Analysis

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NITCO 2018-19 Annual Report Analysis
Mon, 23 Sep

NITCO 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.

NITCO Income Statement Analysis

  • Operating income during the year fell 2.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 130.0% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 0.2% in FY19 as against 0.6% in FY18.
  • Depreciation charges decreased by 51.3% and finance costs increased by 66.5% YoY, respectively.
  • Other income declined by 58.2% YoY.
  • Net profit for the year declined by 132.5% YoY.
  • Net profit margins during the year declined from 30.1% in FY18 to 10.0% in FY19.

NITCO Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 6,096 5,965 -2.2%
Other income Rs m 48 20 -58.2%
Total Revenues Rs m 6,144 5,985 -2.6%
Gross profit Rs m 36 -11 -130.0%
Depreciation Rs m 805 392 -51.3%
Interest Rs m 139 231 66.5%
Profit before tax Rs m -860 -614 -28.7%
Tax Rs m -229 -13 -94.3%
Profit after tax Rs m 1,848 -601 -132.5%
Gross profit margin % 0.6 -0.2
Effective tax rate % 26.6 2.1
Net profit margin % 30.1 -10.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NITCO Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 4 billion as compared to Rs 3 billion in FY18, thereby witnessing an increase of 26.9%.
  • Long-term debt down at Rs 7 billion as compared to Rs 8 billion during FY18, a fall of 8.6%.
  • Current assets fell 2% and stood at Rs 7 billion, while fixed assets fell 5% and stood at Rs 5 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 13 billion as against Rs 13 billion during FY18, thereby witnessing a fall of 3%.

NITCO Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 1,477 942 -36.2
 
Current Liabilities Rs m 3,423 4,344 26.9
Long-term Debt Rs m 8,199 7,490 -8.6
Total Liabilities Rs m 13,477 13,076 -3.0
 
Current assets Rs m 7,433 7,271 -2.2
Fixed Assets Rs m 5,524 5,232 -5.3
Total Assets Rs m 13,477 13,076 -3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NITCO Cash Flow Statement Analysis

  • NITCO's cash flow from operating activities (CFO) during FY19 stood at Rs 310 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -101 million, an improvement of 70.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -223 million, an improvement of 94% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -21 million from the Rs -27 million net cash flows seen during FY18.

NITCO 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 3,698 310 -91.6%
Cash Flow from Investing Activities Rs m -60 -101 -
Cash Flow from Financing Activities Rs m -3,669 -223 -
Net Cash Flow Rs m -27 -21 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for NITCO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -8.4, an decline from the EPS of Rs 25.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 28.3, stands at -3.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at -7.4 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 84.8 83.0
TTM Earnings per share Rs 25.7 -8.4
Diluted earnings per share Rs 33.8 -11.0
Price to Cash Flow x 0.8 -7.4
TTM P/E ratio x -4.5 -3.4
Price / Book Value ratio x 4.9 5.0
Market Cap Rs m 2,030 1,545
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for NITCO

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY19, from 2.2x 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 improved and stood at -1.7x during FY19, from -5.2x 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 -63.7% during FY19, from 125.1% 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 -4.5% during FY19, from 18.2% 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 -2.8% during FY19, from 14.7% 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 2.2 1.7
Debtors’ Days Days 121 128
Interest coverage x -5.2 -1.7
Debt to equity ratio x 5.5 7.9
Return on assets % 14.7 -2.8
Return on equity % 125.1 -63.7
Return on capital employed % 18.2 -4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

NITCO Share Price Performance

Over the last one year, NITCO share price has moved down from Rs 52.0 to Rs 28.3, registering a loss of Rs 23.8 or around 45.7%.

Overall, the S&P BSE SENSEX is up 5.3% over the year.

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

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Related Views on News

NITCO Announces Quarterly Results (2QFY20); Net Profit Down 93.4% (Quarterly Result Update)

Nov 12, 2019 | Updated on Nov 12, 2019

For the quarter ended September 2019, NITCO has posted a net profit of Rs 250 m (down 93.4% YoY). Sales on the other hand came in at Rs 1 bn (down 3.4% YoY). Read on for a complete analysis of NITCO's quarterly results.

NITCO Announces Quarterly Results (1QFY20); Net Profit Up 11.5% (Quarterly Result Update)

Aug 13, 2019 | Updated on Aug 13, 2019

For the quarter ended June 2019, NITCO has posted a net profit of Rs 131 m (up 11.5% YoY). Sales on the other hand came in at Rs 1 bn (up 13.7% YoY). Read on for a complete analysis of NITCO's quarterly results.

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