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NACL INDUSTRIES 2020-21 Annual Report Analysis
Wed, 31 Mar

NACL INDUSTRIES 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.

NACL INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 17.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 72.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.7% in FY21 as against 5.9% in FY20.
  • Depreciation charges increased by 5.5% and finance costs decreased by 4.3% YoY, respectively.
  • Other income grew by 47.1% YoY.
  • Net profit for the year grew by 219.3% YoY.
  • Net profit margins during the year grew from 1.6% in FY20 to 4.2% in FY21.

NACL INDUSTRIES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 10,149 11,914 17.4%
Other income Rs m 165 242 47.1%
Total Revenues Rs m 10,314 12,156 17.9%
Gross profit Rs m 596 1,031 72.9%
Depreciation Rs m 240 253 5.5%
Interest Rs m 292 279 -4.3%
Profit before tax Rs m 230 741 222.7%
Tax Rs m 72 237 230.1%
Profit after tax Rs m 158 504 219.3%
Gross profit margin % 5.9 8.7
Effective tax rate % 31.2 31.9
Net profit margin % 1.6 4.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

NACL INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 5 billion as compared to Rs 6 billion in FY20, thereby witnessing an decrease of -16.5%.
  • Long-term debt stood at Rs 715 million as compared to Rs 218 million during FY20, a growth of 228.7%.
  • Current assets rose 1% and stood at Rs 7 billion, while fixed assets rose 7% and stood at Rs 3 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 10 billion as against Rs 10 billion during FY20, thereby witnessing a growth of 3%.

NACL INDUSTRIES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 3,567 4,164 16.7
 
Current Liabilities Rs m 5,599 4,676 -16.5
Long-term Debt Rs m 218 715 228.7
Total Liabilities Rs m 9,610 9,899 3.0
 
Current assets Rs m 6,975 7,069 1.3
Fixed Assets Rs m 2,635 2,830 7.4
Total Assets Rs m 9,610 9,899 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



NACL INDUSTRIES Cash Flow Statement Analysis

  • NACL INDUSTRIES's cash flow from operating activities (CFO) during FY21 stood at Rs 834 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 141 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -155 million from the Rs 767 million net cash flows seen during FY20.

NACL INDUSTRIES 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 1,030 834 -19.1%
Cash Flow from Investing Activities Rs m -965 141 -
Cash Flow from Financing Activities Rs m 702 -1,129 -
Net Cash Flow Rs m 767 -155 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for NACL INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.6, an improvement from the EPS of Rs 0.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 38.0, stands at 14.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.3 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 52.7 60.7
TTM Earnings per share Rs 0.8 2.6
Diluted earnings per share Rs 0.8 2.5
Price to Cash Flow x 11.1 9.3
TTM P/E ratio x 28.0 14.9
Price / Book Value ratio x 1.4 1.7
Market Cap Rs m 5,109 7,015
Dividends per share (Unadj.) Rs 0.1 0.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for NACL INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x during FY21, from 1.2x 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 improved and stood at 3.7x during FY21, from 1.8x 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 improved and stood at 12.1% during FY21, from 4.4% 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 improved and stood at 20.9% during FY21, from 13.8% 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 improved and stood at 7.9% during FY21, from 4.7% 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 1.2 1.5
Debtors’ Days Days 1,293 1,029
Interest coverage x 1.8 3.7
Debt to equity ratio x 0.1 0.2
Return on assets % 4.7 7.9
Return on equity % 4.4 12.1
Return on capital employed % 13.8 20.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

NACL INDUSTRIES Share Price Performance

Over the last one year, NACL INDUSTRIES share price has moved up from Rs 22.3 to Rs 38.0, registering a gain of Rs 15.7 or around 70.4%.

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

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

Annual Report FAQs

What is the current share price of NACL INDUSTRIES?

NACL INDUSTRIES currently trades at Rs 56.5 per share. You can check out the latest share price performance of NACL INDUSTRIES here...

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

The revenues of NACL INDUSTRIES stood at Rs 12,156 m in FY21, which was up 17.9% compared to Rs 10,314 m reported in FY20.

NACL INDUSTRIES' revenue has grown from Rs 6,506 m in FY17 to Rs 12,156 m in FY21.

Over the past 5 years, the revenue of NACL INDUSTRIES has grown at a CAGR of 16.9%.

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

The net profit of NACL INDUSTRIES stood at Rs 504 m in FY21, which was up 219.3% compared to Rs 158 m reported in FY20.

This compares to a net loss of Rs -83 m in FY19 and a net profit of Rs 106 m in FY18.

Over the past 5 years, NACL INDUSTRIES net profit has grown at a CAGR of 12.4%.

What does the cash flow statement of NACL INDUSTRIES 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 NACL INDUSTRIES reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 834 m as compared to Rs 1,030 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 141 m as compared to Rs -965 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -1,129 m as compared to Rs 702 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations5852453641,030834
From Investments-57-142-270-965141
From Financial Activity-582-113-92702-1,129
Net Cashflow-54-101767-155

What does the Key Ratio analysis of NACL INDUSTRIES 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 NACL INDUSTRIES reveals:

  • Operating profit margins witnessed a fall and down at 8.7% in FY21 as against 5.9% in FY20.
  • Net profit margins grew from 1.6% in FY20 to 4.2% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.2 as compared to 0.1 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)12.65.60.55.98.7
Net Profit Margin (%)5.01.3-1.01.64.2
Debt to Equity Ratio (x)0.10.10.00.10.2

Read: Latest Annual Report Analysis of NACL INDUSTRIES

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