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NMDC LTD 2017-18 Annual Report Analysis

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NMDC LTD 2017-18 Annual Report Analysis
Thu, 20 Dec

NMDC LTD 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.

NMDC LTD Income Statement Analysis

  • Operating income during the year rose 31.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 61.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 50.0% in FY18 as against 40.7% in FY17.
  • Depreciation charges increased by 30.5% and finance costs increased by 78.5% YoY, respectively.
  • Other income declined by 42.5% YoY.
  • Net profit for the year grew by 47.2% YoY.
  • Net profit margins during the year grew from 26.5% in FY17 to 31.3% in FY18.

NMDC LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 88,281 116,149 31.6%
Other income Rs m 9,102 5,232 -42.5%
Total Revenues Rs m 97,383 121,381 24.6%
Gross profit Rs m 35,948 58,028 61.4%
Depreciation Rs m 1,967 2,566 30.5%
Interest Rs m 208 371 78.5%
Profit before tax Rs m 42,876 60,323 40.7%
Tax Rs m 17,040 23,733 39.3%
Profit after tax Rs m 25,835 38,032 47.2%
Gross profit margin % 40.7 50.0
Effective tax rate % 39.7 39.3
Net profit margin % 26.5 31.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NMDC LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 35 billion as compared to Rs 26 billion in FY17, thereby witnessing an increase of 37.7%.
  • Current assets rose 11% and stood at Rs 89 billion, while fixed assets rose 15% and stood at Rs 160 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 287 billion as against Rs 258 billion during FY17, thereby witnessing a growth of 11%.

NMDC LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 225,822 244,174 8.1
 
Current Liabilities Rs m 25,747 35,449 37.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 257,837 286,913 11.3
 
Current assets Rs m 79,762 88,643 11.1
Fixed Assets Rs m 139,506 160,023 14.7
Total Assets Rs m 257,837 286,913 11.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NMDC LTD Cash Flow Statement Analysis

  • NMDC LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 34 billion, an improvement of 60.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -19 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -16 billion, an improvement of 79% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -458 million from the Rs 305 million net cash flows seen during FY17.

NMDC LTD 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 21,085 33,763 60.1%
Cash Flow from Investing Activities Rs m 51,713 -18,649 -
Cash Flow from Financing Activities Rs m -72,493 -15,572 -
Net Cash Flow Rs m 305 -458 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for NMDC LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.0, an improvement from the EPS of Rs 8.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 97.1, stands at 10.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 3.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.5 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 27.9 36.7
TTM Earnings per share Rs 8.2 12.0
Diluted earnings per share Rs 6.5 9.6
Price to Cash Flow x 11.1 9.5
TTM P/E ratio x 8.5 10.7
Price / Book Value ratio x 1.7 1.7
Market Cap Rs m 307,215 384,974
Dividends per share (Unadj.) Rs 5.2 4.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for NMDC LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.5x during FY18, from 3.1x 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 163.6x during FY18, from 207.3x 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 improved and stood at 15.6% during FY18, from 11.4% 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 improved and stood at 25.4% during FY18, from 19.1% 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 improved and stood at 13.4% during FY18, from 10.1% 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 3.1 2.5
Debtors’ Days Days 43 46
Interest coverage x 207.3 163.6
Debt to equity ratio x 0.0 0.0
Return on assets % 10.1 13.4
Return on equity % 11.4 15.6
Return on capital employed % 19.1 25.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

NMDC LTD Share Price Performance

Over the last one year, NMDC LTD share price has moved up from Rs 135.4 to Rs 97.1, registering a loss of Rs 38.3 or around 28.3%.

Overall, the S&P BSE SENSEX is up 7.5% over the year.

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

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Related Views on News

NMDC LTD Announces Quarterly Results (3QFY19); Net Profit Up 77.8% (Quarterly Result Update)

Feb 1, 2019 | Updated on Feb 1, 2019

For the quarter ended December 2018, NMDC LTD has posted a net profit of Rs 16 bn (up 77.8% YoY). Sales on the other hand came in at Rs 36 bn (up 47.8% YoY). Read on for a complete analysis of NMDC LTD's quarterly results.

NMDC LTD Announces Quarterly Results (2QFY19); Net Profit Down 24.6% (Quarterly Result Update)

Nov 15, 2018 | Updated on Nov 15, 2018

For the quarter ended September 2018, NMDC LTD has posted a net profit of Rs 6 bn (down 24.6% YoY). Sales on the other hand came in at Rs 24 bn (up 0.7% YoY). Read on for a complete analysis of NMDC LTD's quarterly results.

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