NACL INDUSTRIES 2022-23 Annual Report Analysis

Fri, 31 Mar

NACL INDUSTRIES 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.

NACL INDUSTRIES Income Statement Analysis

• Operating income during the year rose 29.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.0% in FY23 as against 8.2% in FY22.
• Depreciation charges increased by 12.8% and finance costs increased by 77.6% YoY, respectively.
• Other income declined by 13.6% YoY.
• Net profit for the year grew by 29.2% YoY.
• Net profit margins during the year declined from 4.5% in FY22 to 4.5% in FY23.

NACL INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	16,334	21,155	29.5%
Other income	Rs m	168	145	-13.6%
Total Revenues	Rs m	16,501	21,300	29.1%
Gross profit	Rs m	1,347	1,894	40.6%
Depreciation	Rs m	250	282	12.8%
Interest	Rs m	267	473	77.6%
Profit before tax	Rs m	998	1,284	28.6%
Tax	Rs m	264	335	26.9%
Profit after tax	Rs m	734	949	29.2%
Gross profit margin	%	8.2	9.0
Effective tax rate	%	26.5	26.1
Net profit margin	%	4.5	4.5

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NACL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 11 billion as compared to Rs 8 billion in FY22, thereby witnessing an increase of 34.1%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY22, a growth of 18.0%.
• Current assets rose 25% and stood at Rs 14 billion, while fixed assets rose 30% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 19 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 26%.

NACL INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,868	5,717	17.4
Current Liabilities	Rs m	8,313	11,151	34.1
Long-term Debt	Rs m	1,724	2,035	18.0
Total Liabilities	Rs m	15,155	19,138	26.3
Current assets	Rs m	11,302	14,116	24.9
Fixed Assets	Rs m	3,853	5,023	30.3
Total Assets	Rs m	15,155	19,138	26.3

NACL INDUSTRIES Cash Flow Statement Analysis

• NACL INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs -204 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -285 million from the Rs 19 million net cash flows seen during FY22.

NACL INDUSTRIES 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	-1,243	-204	-
Cash Flow from Investing Activities	Rs m	-1,634	-1,424	-
Cash Flow from Financing Activities	Rs m	2,895	1,345	-53.5%
Net Cash Flow	Rs m	19	-285	-

Current Valuations for NACL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.8, an improvement from the EPS of Rs 3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 81.8, stands at 17.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 14.6 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	82.4	106.4
TTM Earnings per share	Rs	3.7	4.8
Diluted earnings per share	Rs	3.7	4.8
Price to Cash Flow	x	16.4	14.6
TTM P/E ratio	x	21.2	17.4
Price / Book Value ratio	x	2.9	3.1
Market Cap	Rs m	13,951	17,975
Dividends per share (Unadj.)	Rs	0.6	0.7

Ratio Analysis for NACL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.4x 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 deteriorated and stood at 3.7x during FY23, from 4.7x 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 16.6% during FY23, from 15.1% 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 22.7% during FY23, from 19.2% 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 7.4% during FY23, from 6.6% 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	1.4	1.3
Debtors’ Days	Days	1,182	1,331
Interest coverage	x	4.7	3.7
Debt to equity ratio	x	0.4	0.4
Return on assets	%	6.6	7.4
Return on equity	%	15.1	16.6
Return on capital employed	%	19.2	22.7

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 81.3 to Rs 81.8, registering a gain of Rs 0.6 or around 0.7%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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