NCC 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

NCC 2018-19 Annual Report Analysis
Wed, 25 Sep

NCC 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.

NCC Income Statement Analysis

  • Operating income during the year rose 53.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 81.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.4% in FY19 as against 10.5% in FY18.
  • Depreciation charges increased by 12.3% and finance costs increased by 13.6% YoY, respectively.
  • Other income grew by 22.7% YoY.
  • Net profit for the year grew by 309.1% YoY.
  • Net profit margins during the year grew from 1.6% in FY18 to 4.4% in FY19.

NCC Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 83,906 128,956 53.7%
Other income Rs m 1,014 1,243 22.7%
Total Revenues Rs m 84,920 130,200 53.3%
Gross profit Rs m 8,794 15,992 81.8%
Depreciation Rs m 1,715 1,925 12.3%
Interest Rs m 4,596 5,220 13.6%
Profit before tax Rs m 3,497 10,090 188.6%
Tax Rs m 802 3,268 307.6%
Profit after tax Rs m 1,387 5,676 309.1%
Gross profit margin % 10.5 12.4
Effective tax rate % 22.9 32.4
Net profit margin % 1.6 4.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NCC Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 90 billion as compared to Rs 73 billion in FY18, thereby witnessing an increase of 22.7%.
  • Long-term debt stood at Rs 5 billion as compared to Rs 4 billion during FY18, a growth of 22.6%.
  • Current assets rose 19% and stood at Rs 115 billion, while fixed assets rose 32% and stood at Rs 16 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 147 billion as against Rs 124 billion during FY18, thereby witnessing a growth of 18%.

NCC Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 40,825 45,954 12.6
 
Current Liabilities Rs m 73,205 89,851 22.7
Long-term Debt Rs m 3,984 4,884 22.6
Total Liabilities Rs m 124,084 146,604 18.1
 
Current assets Rs m 96,377 115,171 19.5
Fixed Assets Rs m 11,813 15,642 32.4
Total Assets Rs m 124,084 146,604 18.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NCC Cash Flow Statement Analysis

  • NCC's cash flow from operating activities (CFO) during FY19 stood at Rs 7 billion, an improvement of 14.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -6 billion, an improvement of 228.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 892 million, an improvement of 120% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 1 billion from the Rs -560 million net cash flows seen during FY18.

NCC 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 5,858 6,731 14.9%
Cash Flow from Investing Activities Rs m -1,883 -6,189 -
Cash Flow from Financing Activities Rs m -4,535 892 -
Net Cash Flow Rs m -560 1,434 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for NCC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.4, an improvement from the EPS of Rs 2.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 62.8, stands at 6.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.6 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 139.7 214.7
TTM Earnings per share Rs 2.3 9.4
Diluted earnings per share Rs 2.5 10.2
Price to Cash Flow x 11.9 4.6
TTM P/E ratio x 6.9 6.4
Price / Book Value ratio x 1.6 1.3
Market Cap Rs m 37,721 34,912
Dividends per share (Unadj.) Rs 1.0 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for NCC

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY19, from 1.3x 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 2.9x during FY19, from 1.8x 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 improved and stood at 12.4% during FY19, from 3.4% 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 improved and stood at 27.9% during FY19, from 15.1% 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 improved and stood at 7.4% during FY19, from 4.8% 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 1.3 1.3
Debtors’ Days Days 216 97
Interest coverage x 1.8 2.9
Debt to equity ratio x 0.1 0.1
Return on assets % 4.8 7.4
Return on equity % 3.4 12.4
Return on capital employed % 15.1 27.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

NCC Share Price Performance

Over the last one year, NCC share price has moved down from Rs 79.7 to Rs 62.8, registering a loss of Rs 16.9 or around 21.2%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,045.7 (down 1.3%). Over the last one year it has moved up from 1,810.5 to 2,045.7, a gain of 235 points (up 13.0%).

Overall, the S&P BSE SENSEX is up 6.7% over the year.

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

Equitymaster requests your view! Post a comment on "NCC 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

NCC Surges by 12%; BSE REALTY Index Down 0.2% (Market Updates)

Nov 21, 2019 | Updated on Nov 21, 2019

NCC share price has surged by 12% and its current market price is Rs 70. The BSE REALTY is down by 0.2%. The top gainers in the BSE REALTY Index is NCC (up 11.8%). The top losers are PHOENIX MILL (down 0.1%) and PRESTIGE ESTATES (down 0.2%).

NCC Announces Quarterly Results (2QFY20); Net Profit Down 34.1% (Quarterly Result Update)

Nov 11, 2019 | Updated on Nov 11, 2019

For the quarter ended September 2019, NCC has posted a net profit of Rs 808 m (down 34.1% YoY). Sales on the other hand came in at Rs 19 bn (down 40.2% YoY). Read on for a complete analysis of NCC's quarterly results.

NCC Announces Quarterly Results (1QFY20); Net Profit Down 28.2% (Quarterly Result Update)

Aug 13, 2019 | Updated on Aug 13, 2019

For the quarter ended June 2019, NCC has posted a net profit of Rs 745 m (down 28.2% YoY). Sales on the other hand came in at Rs 23 bn (down 0.5% YoY). Read on for a complete analysis of NCC's quarterly results.

IRCON International IPO: Is This PSU Worth Betting On? (IPO)

Sep 17, 2018

Should you subscribe to the IPO of IRCON International Ltd?

More Views on News

Most Popular

The Smartest Stock to Buy for 2020(Profit Hunter)

Nov 14, 2019

Small-cap stocks are selling at bargain prices today and are poised to generate a lot of wealth in 2020 and beyond...

A Trade that Could Generate Profits for Decades

Nov 14, 2019

India's #1 trader is back on the Investor Hour. Vijay Bhambwani talks to us about his super-profitable trading system and shares with us his #1 long term trade. Listen in...

Why Moody's Rating Downgrade is a Strong Sign to Buy Stocks(The 5 Minute Wrapup)

Nov 8, 2019

Investors who took cues from Moody's rating downgrade in 1992 and 2002 created some of the biggest wealth of their lifetime.

The One Trade I'm Most Bullish on Now

Nov 12, 2019

A highly specific trade to potentially triple your money in just three months. You won't find this information anywhere else!

How the Modi Government is Helping My Top 7 Stocks(The 5 Minute Wrapup)

Nov 14, 2019

Recent reforms by the Modi government can give a big boost on your stocks, provided you buy the right ones.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2020
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK NCC

COMPARE NCC WITH

MARKET STATS