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NAHAR SPINNING M 2017-18 Annual Report Analysis
Sat, 31 Mar

NAHAR SPINNING M has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

NAHAR SPINNING M Income Statement Analysis

  • Operating income during the year rose 0.1% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 50.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.4% in FY18 as against 8.8% in FY17.
  • Depreciation charges decreased by 1.8% and finance costs increased by 17.9% YoY, respectively.
  • Other income declined by 59.1% YoY.
  • Net profit for the year declined by 170.0% YoY.
  • Net profit margins during the year declined from 2.2% in FY17 to 1.5% in FY18.

NAHAR SPINNING M Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 21,321 21,332 0.1%
Other income Rs m 220 90 -59.1%
Total Revenues Rs m 21,541 21,422 -0.6%
Gross profit Rs m 1,881 937 -50.2%
Depreciation Rs m 958 941 -1.8%
Interest Rs m 465 549 17.9%
Profit before tax Rs m 677 -463 -168.4%
Tax Rs m 217 -141 -165.0%
Profit after tax Rs m 460 -322 -170.0%
Gross profit margin % 8.8 4.4
Effective tax rate % 32.1 30.5
Net profit margin % 2.2 -1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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NAHAR SPINNING M Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 11 billion as compared to Rs 7 billion in FY17, thereby witnessing an increase of 50.6%.
  • Long-term debt down at Rs 729 million as compared to Rs 2 billion during FY17, a fall of 56.9%.
  • Current assets rose 31% and stood at Rs 13 billion, while fixed assets fell 8% and stood at Rs 8 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 20 billion as against Rs 18 billion during FY17, thereby witnessing a growth of 13%.

NAHAR SPINNING M Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 8,563 8,186 -4.4
 
Current Liabilities Rs m 7,459 11,235 50.6
Long-term Debt Rs m 1,694 729 -56.9
Total Liabilities Rs m 18,100 20,397 12.7
 
Current assets Rs m 9,533 12,510 31.2
Fixed Assets Rs m 8,567 7,887 -7.9
Total Assets Rs m 18,100 20,397 12.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



NAHAR SPINNING M Cash Flow Statement Analysis

  • NAHAR SPINNING M's cash flow from operating activities (CFO) during FY18 stood at Rs -2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -192 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -4 billion from the Rs 2 billion net cash flows seen during FY17.

NAHAR SPINNING M Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 3,825 -2,399 -
Cash Flow from Investing Activities Rs m -613 -192 -
Cash Flow from Financing Activities Rs m -1,200 -1,225 -
Net Cash Flow Rs m 2,012 -3,816 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for NAHAR SPINNING M

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -8.9, an decline from the EPS of Rs 12.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 86.5, stands at -9.7 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 0.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 591.1 591.4
TTM Earnings per share Rs 12.7 -8.9
Diluted earnings per share Rs 12.7 -8.9
Price to Cash Flow x 3.4 7.0
TTM P/E ratio x 10.7 -9.7
Price / Book Value ratio x 0.5 0.5
Market Cap Rs m 4,600 4,312
Dividends per share (Unadj.) Rs 1.5 0.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for NAHAR SPINNING M

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY18, from 1.3x during FY17. 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 0.2x during FY18, from 2.5x during FY17. 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 -3.9% during FY18, from 5.4% during FY18. 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 1.0% during FY18, from 11.1% during FY17. 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 1.1% during FY18, from 5.1% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.3 1.1
Debtors’ Days Days 520 591
Interest coverage x 2.5 0.2
Debt to equity ratio x 0.2 0.1
Return on assets % 5.1 1.1
Return on equity % 5.4 -3.9
Return on capital employed % 11.1 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

NAHAR SPINNING M Share Price Performance

Over the last one year, NAHAR SPINNING M share price has moved down from Rs 135.3 to Rs 86.5, registering a loss of Rs 48.8 or around 36.1%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Annual Report FAQs

What is the current share price of NAHAR SPINNING M?

NAHAR SPINNING M currently trades at Rs 272.7 per share. You can check out the latest share price performance of NAHAR SPINNING M here...

What was the revenue of NAHAR SPINNING M in FY18? How does it compare to earlier years?

The revenues of NAHAR SPINNING M stood at Rs 21,422 m in FY18, which was down -0.6% compared to Rs 21,541 m reported in FY17.

NAHAR SPINNING M's revenue has grown from Rs 20,470 m in FY16 to Rs 21,422 m in FY18.

Over the past 3 years, the revenue of NAHAR SPINNING M has grown at a CAGR of 2.3%.

What was the net profit of NAHAR SPINNING M in FY18? How does it compare to earlier years?

The net loss of NAHAR SPINNING M stood at Rs -322 m in FY18, which was down -170.0% compared to Rs 460 m reported in FY17.

This compares to a net profit of Rs 509 m in FY16.

Over the past 3 years, NAHAR SPINNING M net profit has grown at a CAGR of NaN%.

What does the cash flow statement of NAHAR SPINNING M 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 SPINNING M reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs -2,399 m as compared to Rs 3,825 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -192 m as compared to Rs -613 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -1,225 m as compared to Rs -1,200 m in FY17.

Here's the cash flow statement of NAHAR SPINNING M for the past 3 years.

(Rs m)FY16FY17FY18
From Operations1,6253,825-2,399
From Investments-584-613-192
From Financial Activity-1,208-1,200-1,225
Net Cashflow-1672,012-3,816

What does the Key Ratio analysis of NAHAR SPINNING M 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 SPINNING M reveals:

  • Operating profit margins witnessed a fall and stood at 4.4% in FY18 as against 8.8% in FY17.
  • Net profit margins declined from 2.2% in FY17 to 1.5% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.1 as compared to 0.2 in FY17.

Here's the ratio/financial analysis of NAHAR SPINNING M for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)11.18.84.4
Net Profit Margin (%)2.52.2-1.5
Debt to Equity Ratio (x)0.30.20.1

Read: Latest Annual Report Analysis of NAHAR SPINNING M

 

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