NAHAR SPINNING M 2017-18 Annual Report Analysis

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NAHAR SPINNING M 2017-18 Annual Report Analysis
Mon, 21 Jan

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 51.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.2% in FY18 as against 8.6% in FY17.
  • Depreciation charges decreased by 1.8% and finance costs increased by 21.3% 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 2.1% 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 21,292 21,307 0.1%
Other income Rs m 220 90 -59.1%
Total Revenues Rs m 21,512 21,397 -0.5%
Gross profit Rs m 1,826 885 -51.5%
Depreciation Rs m 958 941 -1.8%
Interest Rs m 410 498 21.3%
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 % 8.6 4.2
Effective tax rate % 32.1 30.5
Net profit margin % 2.1 -1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 54.6%.
  • Long-term debt down at Rs 729 million as compared to Rs 2 billion during FY17, a fall of 56.9%.
  • Current assets rose 33% and stood at Rs 12 billion, while fixed assets fell 8% and stood at Rs 7 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 6,915 10,688 54.6
Long-term Debt Rs m 1,694 729 -56.9
Total Liabilities Rs m 17,557 19,850 13.1
 
Current assets Rs m 8,989 11,963 33.1
Fixed Assets Rs m 7,731 7,144 -7.6
Total Assets Rs m 17,557 19,850 13.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 -3 billion 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 -10 billion from the Rs 6 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 3,212 -2,591 -
Cash Flow from Financing Activities Rs m -1,200 -1,225 -
Net Cash Flow Rs m 5,837 -10,031 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 91.5, stands at 6.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.3 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 590.3 590.7
TTM Earnings per share Rs 12.7 -8.9
Diluted earnings per share Rs 12.7 -8.9
Price to Cash Flow x 2.3 5.3
TTM P/E ratio x 6.3 6.3
Price / Book Value ratio x 0.5 0.5
Market Cap Rs m 3,300 3,300
Dividends per share (Unadj.) Rs 1.5 0.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for NAHAR SPINNING M

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved 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 0.1x during FY18, from 2.7x 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 0.4% during FY18, from 10.6% 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 0.9% during FY18, from 5.0% 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 52 59
Interest coverage x 2.7 0.1
Debt to equity ratio x 0.2 0.1
Return on assets % 5.0 0.9
Return on equity % 5.4 -3.9
Return on capital employed % 10.6 0.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 up from Rs 122.8 to Rs 91.5, registering a loss of Rs 31.3 or around 25.5%.

Overall, the S&P BSE SENSEX is up 3.9% over the year.

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

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For the quarter ended June 2019, NAHAR SPINNING M has posted a net profit of Rs 32 m (down 77.0% YoY). Sales on the other hand came in at Rs 5 bn (down 8.4% YoY). Read on for a complete analysis of NAHAR SPINNING M's quarterly results.

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