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NITCO 2017-18 Annual Report Analysis
Sat, 31 Mar

NITCO has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

NITCO Income Statement Analysis

  • Operating income during the year fell 12.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 959.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 41.8% in FY18 as against 3.5% in FY17.
  • Depreciation charges increased by 62.1% and finance costs increased by 70.1% YoY, respectively.
  • Other income grew by 171.0% YoY.
  • Net profit for the year declined by 650.7% YoY.
  • Net profit margins during the year grew from 4.9% in FY17 to 30.7% in FY18.

NITCO Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 6,866 6,021 -12.3%
Other income Rs m 19 51 171.0%
Total Revenues Rs m 6,885 6,072 -11.8%
Gross profit Rs m 237 2,514 959.1%
Depreciation Rs m 497 805 62.1%
Interest Rs m 83 141 70.1%
Profit before tax Rs m -324 1,618 -600.0%
Tax Rs m 12 -229 -2,034.4%
Profit after tax Rs m -336 1,848 -650.7%
Gross profit margin % 3.5 41.8
Effective tax rate % -3.7 -14.2
Net profit margin % -4.9 30.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

NITCO Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 3 billion as compared to Rs 11 billion in FY17, thereby witnessing an decrease of -68.8%.
  • Long-term debt stood at Rs 8 billion as compared to Rs 5 billion during FY17, a growth of 74.3%.
  • Current assets fell 8% and stood at Rs 7 billion, while fixed assets fell 11% and stood at Rs 6 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 13 billion as against Rs 15 billion during FY17, thereby witnessing a fall of 9%.

NITCO Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m -1,293 1,477 -214.2
 
Current Liabilities Rs m 10,972 3,423 -68.8
Long-term Debt Rs m 4,704 8,199 74.3
Total Liabilities Rs m 14,855 13,477 -9.3
 
Current assets Rs m 8,036 7,433 -7.5
Fixed Assets Rs m 6,819 6,044 -11.4
Total Assets Rs m 14,855 13,477 -9.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



NITCO Cash Flow Statement Analysis

  • NITCO's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion, an improvement of 1,092.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -60 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -27 million from the Rs -38 million net cash flows seen during FY17.

NITCO Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 310 3,698 1,092.8%
Cash Flow from Investing Activities Rs m -96 -60 -
Cash Flow from Financing Activities Rs m -251 -3,669 -
Net Cash Flow Rs m -38 -27 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for NITCO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.7, an improvement from the EPS of Rs -6.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 92.5, stands at 3.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 2.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 125.5 83.8
TTM Earnings per share Rs -6.1 25.7
Diluted earnings per share Rs -4.7 25.7
Price to Cash Flow x 26.0 2.7
TTM P/E ratio x -13.0 3.4
Price / Book Value ratio x -2.7 4.8
Market Cap Rs m 3,536 7,159
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for NITCO

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.2x during FY18, from 0.7x during FY17. 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 12.5x during FY18, from -2.9x during FY17. 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 125.1% during FY18, from 25.9% during FY18. 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 18.2% during FY18, from -7.1% during FY17. 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 14.8% during FY18, from -1.7% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.7 2.2
Debtors’ Days Days 798 1,228
Interest coverage x -2.9 12.5
Debt to equity ratio x -3.6 5.6
Return on assets % -1.7 14.8
Return on equity % 25.9 125.1
Return on capital employed % -7.1 18.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 up from Rs 58.4 to Rs 92.5, registering a gain of Rs 34.1 or around 58.4%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Annual Report FAQs

What is the current share price of NITCO?

NITCO currently trades at Rs 55.9 per share. You can check out the latest share price performance of NITCO here...

What was the revenue of NITCO in FY18? How does it compare to earlier years?

The revenues of NITCO stood at Rs 6,072 m in FY18, which was down -11.8% compared to Rs 6,885 m reported in FY17.

NITCO's revenue has fallen from Rs 7,993 m in FY16 to Rs 6,072 m in FY18.

Over the past 3 years, the revenue of NITCO has grown at a CAGR of -12.8%.

What was the net profit of NITCO in FY18? How does it compare to earlier years?

The net profit of NITCO stood at Rs 1,848 m in FY18, which was down -650.7% compared to Rs -336 m reported in FY17.

This compares to a net loss of Rs -583 m in FY16.

Over the past 3 years, NITCO net profit has grown at a CAGR of NaN%.

What does the cash flow statement of NITCO 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 NITCO reveals:

  • Cash flow from operations increased in FY18 and stood at Rs 3,698 m as compared to Rs 310 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -60 m as compared to Rs -96 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -3,669 m as compared to Rs -251 m in FY17.

Here's the cash flow statement of NITCO for the past 3 years.

(Rs m)FY16FY17FY18
From Operations863103,698
From Investments-110-96-60
From Financial Activity37-251-3,669
Net Cashflow-1-38-27

What does the Key Ratio analysis of NITCO 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 NITCO reveals:

  • Operating profit margins witnessed a fall and down at 41.8% in FY18 as against 3.5% in FY17.
  • Net profit margins grew from 4.9% in FY17 to 30.7% in FY18.
  • Debt to Equity ratio for FY18 stood at 5.6 as compared to -3.6 in FY17.

Here's the ratio/financial analysis of NITCO for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)2.03.541.8
Net Profit Margin (%)-7.3-4.930.7
Debt to Equity Ratio (x)-6.7-3.65.6

Read: Latest Annual Report Analysis of NITCO

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