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?  

NMDC 2022-23 Annual Report Analysis
Wed, 16 Aug

NMDC 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.

NMDC Income Statement Analysis

  • Operating income during the year fell 32.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 42.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 41.3% in FY23 as against 48.6% in FY22.
  • Depreciation charges increased by 16.8% and finance costs increased by 92.6% YoY, respectively.
  • Other income grew by 6.9% YoY.
  • Net profit for the year declined by 41.3% YoY.
  • Net profit margins during the year declined from 36.4% in FY22 to 31.3% in FY23.

NMDC Income Statement 2022-23

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Net Sales Rs m 259,648 176,669 -32.0%
Other income Rs m 7,185 7,682 6.9%
Total Revenues Rs m 266,833 184,351 -30.9%
Gross profit Rs m 126,245 72,898 -42.3%
Depreciation Rs m 2,877 3,362 16.8%
Interest Rs m 391 752 92.6%
Profit before tax Rs m 130,162 76,466 -41.3%
Tax Rs m 35,751 21,082 -41.0%
Profit after tax Rs m 94,411 55,384 -41.3%
Gross profit margin % 48.6 41.3
Effective tax rate % 27.5 27.6
Net profit margin % 36.4 31.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Revealing Soon: A Potential Huge Investing Opportunity for Investors

NMDC Balance Sheet Analysis

  • The company's current liabilities during FY23 down at Rs 125 billion as compared to Rs 135 billion in FY22, thereby witnessing an decrease of -8.0%.
  • Current assets rose 2% and stood at Rs 241 billion, while fixed assets rose 41% and stood at Rs 121 billion in FY23.
  • Overall, the total assets and liabilities for FY23 stood at Rs 362 billion as against Rs 322 billion during FY22, thereby witnessing a growth of 12%.

NMDC Balance Sheet as on March 2023

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Networth Rs m 180,183 226,208 25.5
 
Current Liabilities Rs m 135,355 124,592 -8.0
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 322,469 362,081 12.3
 
Current assets Rs m 236,217 240,651 1.9
Fixed Assets Rs m 86,252 121,430 40.8
Total Assets Rs m 322,469 362,081 12.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



NMDC Cash Flow Statement Analysis

  • NMDC's cash flow from operating activities (CFO) during FY23 stood at Rs 25 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY23 stood at Rs 433 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY23 stood at Rs -25 billion, an improvement of 38% on a YoY basis.
  • Overall, net cash flows for the company during FY23 stood at Rs -276 million from the Rs -3 billion net cash flows seen during FY22.

NMDC 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 69,418 24,656 -64.5%
Cash Flow from Investing Activities Rs m -32,139 433 -
Cash Flow from Financing Activities Rs m -40,669 -25,365 -
Net Cash Flow Rs m -3,389 -276 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for NMDC

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.9, an decline from the EPS of Rs 32.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 118.6, stands at 6.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.7 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 88.6 60.3
TTM Earnings per share Rs 32.2 18.9
Diluted earnings per share Rs 32.2 18.9
Price to Cash Flow x 4.9 6.7
TTM P/E ratio x 5.0 6.1
Price / Book Value ratio x 2.8 1.7
Market Cap Rs m 499,595 394,166
Dividends per share (Unadj.) Rs 14.7 6.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for NMDC

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.9x during FY23, from 1.7x 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 102.6x during FY23, from 334.2x 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 24.5% during FY23, from 52.4% 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 34.1% during FY23, from 72.5% 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 15.5% during FY23, from 29.4% 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 1.7 1.9
Debtors’ Days Days 4 5
Interest coverage x 334.2 102.6
Debt to equity ratio x 0.0 0.0
Return on assets % 29.4 15.5
Return on equity % 52.4 24.5
Return on capital employed % 72.5 34.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

NMDC Share Price Performance

Over the last one year, NMDC share price has moved up from Rs 117.0 to Rs 118.6, registering a gain of Rs 1.6 or around 1.3%.

Overall, the S&P BSE SENSEX is up 10.2% over the year.

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

Annual Report FAQs

What is the current share price of NMDC?

NMDC currently trades at Rs 266.0 per share. You can check out the latest share price performance of NMDC here...

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

The revenues of NMDC stood at Rs 184,351 m in FY23, which was down -30.9% compared to Rs 266,833 m reported in FY22.

NMDC's revenue has grown from Rs 127,416 m in FY19 to Rs 184,351 m in FY23.

Over the past 5 years, the revenue of NMDC has grown at a CAGR of 9.7%.

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

The net profit of NMDC stood at Rs 55,384 m in FY23, which was down -41.3% compared to Rs 94,411 m reported in FY22.

This compares to a net profit of Rs 62,471 m in FY21 and a net profit of Rs 36,015 m in FY20.

Over the past 5 years, NMDC net profit has grown at a CAGR of 4.5%.

What does the cash flow statement of NMDC 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 NMDC reveals:

  • Cash flow from operations decreased in FY23 and stood at Rs 24,656 m as compared to Rs 69,418 m in FY22.
  • Cash flow from investments increased in FY23 and stood at Rs 433 m as compared to Rs -32,139 m in FY22.
  • Cash flow from financial activity increased in FY23 and stood at Rs -25,365 m as compared to Rs -40,669 m in FY22.

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

(Rs m)FY19FY20FY21FY22FY23
From Operations40,01521,26072,66169,41824,656
From Investments-7,892-3,128-43,163-32,139433
From Financial Activity-32,010-17,533-25,913-40,669-25,365
Net Cashflow1135993,585-3,389-276

What does the Key Ratio analysis of NMDC 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 NMDC reveals:

  • Operating profit margins witnessed a fall and stood at 41.3% in FY23 as against 48.6% in FY22.
  • Net profit margins declined from 36.4% in FY22 to 31.3% in FY23.
  • Debt to Equity ratio for FY23 stood at 0.0 as compared to 0.0 in FY22.

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

 FY19FY20FY21FY22FY23
Operating Profit Margin (%)57.050.557.248.641.3
Net Profit Margin (%)38.230.840.636.431.3
Debt to Equity Ratio (x)0.00.00.00.00.0

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