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

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

NAHAR INDUSTRIES 2022-23 Annual Report Analysis
Mon, 19 Feb

NAHAR 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.

NAHAR INDUSTRIES Income Statement Analysis

  • Operating income during the year fell 11.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 53.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.1% in FY23 as against 15.2% in FY22.
  • Depreciation charges decreased by 3.0% and finance costs decreased by 33.5% YoY, respectively.
  • Other income grew by 156.6% YoY.
  • Net profit for the year declined by 49.7% YoY.
  • Net profit margins during the year declined from 7.8% in FY22 to 4.4% in FY23.

NAHAR INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Net Sales Rs m 20,064 17,739 -11.6%
Other income Rs m 169 432 156.6%
Total Revenues Rs m 20,232 18,171 -10.2%
Gross profit Rs m 3,055 1,435 -53.0%
Depreciation Rs m 498 483 -3.0%
Interest Rs m 566 377 -33.5%
Profit before tax Rs m 2,159 1,008 -53.3%
Tax Rs m 589 218 -62.9%
Profit after tax Rs m 1,570 789 -49.7%
Gross profit margin % 15.2 8.1
Effective tax rate % 27.3 21.7
Net profit margin % 7.8 4.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



5 PM TODAY: Golden Buying Window to Ride India's Potentially Decade-Long $10 Trillion Bull Run...

NAHAR INDUSTRIES Balance Sheet Analysis

  • The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 8 billion in FY22, thereby witnessing an decrease of -62.2%.
  • Long-term debt down at Rs 596 million as compared to Rs 803 million during FY22, a fall of 25.8%.
  • Current assets fell 41% and stood at Rs 7 billion, while fixed assets rose 3% and stood at Rs 7 billion in FY23.
  • Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 18 billion during FY22, thereby witnessing a fall of 26%.

NAHAR INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Networth Rs m 8,971 9,597 7.0
 
Current Liabilities Rs m 8,274 3,127 -62.2
Long-term Debt Rs m 803 596 -25.8
Total Liabilities Rs m 18,288 13,607 -25.6
 
Current assets Rs m 11,764 6,937 -41.0
Fixed Assets Rs m 6,461 6,670 3.2
Total Assets Rs m 18,288 13,607 -25.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



NAHAR INDUSTRIES Cash Flow Statement Analysis

  • NAHAR INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion, an improvement of 495.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY23 stood at Rs -550 million, an improvement of 56.6% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY23 stood at Rs -1 million from the Rs 5 million net cash flows seen during FY22.

NAHAR 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 846 5,035 495.2%
Cash Flow from Investing Activities Rs m -351 -550 -
Cash Flow from Financing Activities Rs m -490 -4,487 -
Net Cash Flow Rs m 5 -1 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for NAHAR INDUSTRIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.3, an decline from the EPS of Rs 39.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 90.7, stands at 4.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.5 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 503.6 410.5
TTM Earnings per share Rs 39.4 18.3
Diluted earnings per share Rs 36.3 18.3
Price to Cash Flow x 3.4 5.5
TTM P/E ratio x 4.6 4.9
Price / Book Value ratio x 0.5 0.7
Market Cap Rs m 4,724 6,957
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for NAHAR INDUSTRIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.2x 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 4.8x 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 declined and down at 8.2% during FY23, from 17.5% 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 declined and down at 13.6% during FY23, from 27.9% 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 declined and down at 8.6% during FY23, from 11.7% 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 2.2
Debtors’ Days Days 504 337
Interest coverage x 4.8 3.7
Debt to equity ratio x 0.1 0.1
Return on assets % 11.7 8.6
Return on equity % 17.5 8.2
Return on capital employed % 27.9 13.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

NAHAR INDUSTRIES Share Price Performance

Over the last one year, NAHAR INDUSTRIES share price has moved down from Rs 165.0 to Rs 90.7, registering a loss of Rs 74.3 or around 45.0%.

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

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

Annual Report FAQs

What is the current share price of NAHAR INDUSTRIES?

NAHAR INDUSTRIES currently trades at Rs 130.7 per share. You can check out the latest share price performance of NAHAR INDUSTRIES here...

What was the revenue of NAHAR INDUSTRIES in FY23? How does it compare to earlier years?

The revenues of NAHAR INDUSTRIES stood at Rs 18,171 m in FY23, which was down -10.2% compared to Rs 20,232 m reported in FY22.

NAHAR INDUSTRIES' revenue has fallen from Rs 18,787 m in FY19 to Rs 18,171 m in FY23.

Over the past 5 years, the revenue of NAHAR INDUSTRIES has grown at a CAGR of -0.8%.

What was the net profit of NAHAR INDUSTRIES in FY23? How does it compare to earlier years?

The net profit of NAHAR INDUSTRIES stood at Rs 789 m in FY23, which was down -49.7% compared to Rs 1,570 m reported in FY22.

This compares to a net loss of Rs -88 m in FY21 and a net loss of Rs -254 m in FY20.

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

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

  • Cash flow from operations increased in FY23 and stood at Rs 5,035 m as compared to Rs 846 m in FY22.
  • Cash flow from investments decreased in FY23 and stood at Rs -550 m as compared to Rs -351 m in FY22.
  • Cash flow from financial activity decreased in FY23 and stood at Rs -4,487 m as compared to Rs -490 m in FY22.

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

(Rs m)FY19FY20FY21FY22FY23
From Operations2,0291,7257508465,035
From Investments-285-336-153-351-550
From Financial Activity-1,745-1,389-602-490-4,487
Net Cashflow-10-55-1

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

  • Operating profit margins witnessed a fall and stood at 8.1% in FY23 as against 15.2% in FY22.
  • Net profit margins declined from 7.8% in FY22 to 4.4% in FY23.
  • Debt to Equity ratio for FY23 stood at 0.1 as compared to 0.1 in FY22.

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

 FY19FY20FY21FY22FY23
Operating Profit Margin (%)6.25.76.615.28.1
Net Profit Margin (%)-1.2-1.6-0.67.84.4
Debt to Equity Ratio (x)0.30.20.20.10.1

 

Equitymaster requests your view! Post a comment on "NAHAR INDUSTRIES 2022-23 Annual Report Analysis". Click here!