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NACL INDUSTRIES 2018-19 Annual Report Analysis
Sun, 31 Mar

NACL INDUSTRIES 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.

NACL INDUSTRIES Income Statement Analysis

  • Operating income during the year rose 4.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 90.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.5% in FY19 as against 5.6% in FY18.
  • Depreciation charges increased by 2.9% and finance costs increased by 1.7% YoY, respectively.
  • Other income grew by 64.9% YoY.
  • Net profit for the year declined by 178.3% YoY.
  • Net profit margins during the year declined from 1.3% in FY18 to 1.0% in FY19.

NACL INDUSTRIES Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 8,276 8,655 4.6%
Other income Rs m 212 350 64.9%
Total Revenues Rs m 8,488 9,005 6.1%
Gross profit Rs m 464 45 -90.4%
Depreciation Rs m 198 204 2.9%
Interest Rs m 334 340 1.7%
Profit before tax Rs m 145 -149 -202.6%
Tax Rs m 39 -65 -269.4%
Profit after tax Rs m 106 -83 -178.3%
Gross profit margin % 5.6 0.5
Effective tax rate % 26.6 44.0
Net profit margin % 1.3 -1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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NACL INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 4 billion as compared to Rs 4 billion in FY18, thereby witnessing an increase of 0.7%.
  • Long-term debt down at Rs 118 million as compared to Rs 202 million during FY18, a fall of 41.8%.
  • Current assets rose 5% and stood at Rs 6 billion, while fixed assets rose 2% and stood at Rs 2 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 7 billion as against Rs 7 billion during FY18, thereby witnessing a growth of 4%.

NACL INDUSTRIES Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 2,391 2,641 10.5
 
Current Liabilities Rs m 4,317 4,346 0.7
Long-term Debt Rs m 202 118 -41.8
Total Liabilities Rs m 7,130 7,447 4.4
 
Current assets Rs m 5,298 5,580 5.3
Fixed Assets Rs m 1,832 1,867 1.9
Total Assets Rs m 7,130 7,447 4.4
* 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 FY19 stood at Rs 364 million, an improvement of 48.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -270 million, an improvement of 90.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -92 million, an improvement of 18% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 1 million from the Rs -10 million net cash flows seen during FY18.

NACL INDUSTRIES 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 245 364 48.7%
Cash Flow from Investing Activities Rs m -142 -270 -
Cash Flow from Financing Activities Rs m -113 -92 -
Net Cash Flow Rs m -10 1 -
* 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 -0.5, an decline from the EPS of Rs 0.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 29.9, stands at -70.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 49.8 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 52.9 51.7
TTM Earnings per share Rs 0.7 -0.5
Diluted earnings per share Rs 0.5 -0.4
Price to Cash Flow x 25.8 49.8
TTM P/E ratio x 73.3 -70.8
Price / Book Value ratio x 3.1 2.3
Market Cap Rs m 7,389 5,985
Dividends per share (Unadj.) Rs 0.1 0.0
* 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 1.3x during FY19, from 1.2x 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 deteriorated and stood at 0.6x during FY19, from 1.4x 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 -3.1% during FY19, from 4.4% 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 6.9% during FY19, from 18.5% 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 3.4% during FY19, from 6.2% 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 1.2 1.3
Debtors’ Days Days 1,264 1,129
Interest coverage x 1.4 0.6
Debt to equity ratio x 0.1 0.0
Return on assets % 6.2 3.4
Return on equity % 4.4 -3.1
Return on capital employed % 18.5 6.9
* 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 down from Rs 39.5 to Rs 29.9, registering a loss of Rs 9.6 or around 24.3%.

Overall, the S&P BSE SENSEX is up 16.3% 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 FY19? How does it compare to earlier years?

The revenues of NACL INDUSTRIES stood at Rs 9,005 m in FY19, which was up 6.1% compared to Rs 8,488 m reported in FY18.

NACL INDUSTRIES' revenue has grown from Rs 6,277 m in FY16 to Rs 9,005 m in FY19.

Over the past 4 years, the revenue of NACL INDUSTRIES has grown at a CAGR of 12.8%.

What was the net profit of NACL INDUSTRIES in FY19? How does it compare to earlier years?

The net loss of NACL INDUSTRIES stood at Rs -83 m in FY19, which was down -178.3% compared to Rs 106 m reported in FY18.

This compares to a net profit of Rs 316 m in FY17 and a net profit of Rs 88 m in FY16.

Over the past 4 years, NACL INDUSTRIES net profit has grown at a CAGR of NaN%.

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 increased in FY19 and stood at Rs 364 m as compared to Rs 245 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -270 m as compared to Rs -142 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs -92 m as compared to Rs -113 m in FY18.

Here's the cash flow statement of NACL INDUSTRIES for the past 4 years.

(Rs m)FY16FY17FY18FY19
From Operations456585245364
From Investments-118-57-142-270
From Financial Activity-328-582-113-92
Net Cashflow11-54-101

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 stood at 0.5% in FY19 as against 5.6% in FY18.
  • Net profit margins declined from 1.3% in FY18 to 1.0% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.1 in FY18.

Here's the ratio/financial analysis of NACL INDUSTRIES for the past 4 years.

 FY16FY17FY18FY19
Operating Profit Margin (%)9.212.65.60.5
Net Profit Margin (%)1.45.01.3-1.0
Debt to Equity Ratio (x)0.20.10.10.0

Read: Latest Annual Report Analysis of NACL INDUSTRIES

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