NMDC LTD 2018-19 Annual Report Analysis

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NMDC LTD 2018-19 Annual Report Analysis
Mon, 9 Sep

NMDC LTD has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

NMDC LTD Income Statement Analysis

  • Operating income during the year rose 4.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 19.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 57.0% in FY19 as against 50.0% in FY18.
  • Depreciation charges increased by 8.7% and finance costs increased by 8.7% YoY, respectively.
  • Other income grew by 12.6% YoY.
  • Net profit for the year grew by 21.3% YoY.
  • Net profit margins during the year grew from 31.4% in FY18 to 36.2% in FY19.

NMDC LTD Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 116,149 121,527 4.6%
Other income Rs m 5,232 5,890 12.6%
Total Revenues Rs m 121,381 127,416 5.0%
Gross profit Rs m 58,033 69,244 19.3%
Depreciation Rs m 2,566 2,790 8.7%
Interest Rs m 371 403 8.7%
Profit before tax Rs m 60,328 71,940 19.2%
Tax Rs m 23,733 25,565 7.7%
Profit after tax Rs m 38,085 46,184 21.3%
Gross profit margin % 50.0 57.0
Effective tax rate % 39.3 35.5
Net profit margin % 31.4 36.2
* 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 FY19 down at Rs 31 billion as compared to Rs 35 billion in FY18, thereby witnessing an decrease of -13.5%.
  • Current assets fell 10% and stood at Rs 80 billion, while fixed assets rose 8% and stood at Rs 173 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 299 billion as against Rs 287 billion during FY18, thereby witnessing a growth of 4%.

NMDC LTD Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 244,174 260,440 6.7
 
Current Liabilities Rs m 35,449 30,648 -13.5
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 286,913 298,919 4.2
 
Current assets Rs m 88,643 79,773 -10.0
Fixed Assets Rs m 160,023 173,313 8.3
Total Assets Rs m 286,913 298,919 4.2
* 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 FY19 stood at Rs 41 billion, an improvement of 21.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -8 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -33 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 113 million from the Rs -458 million net cash flows seen during FY18.

NMDC LTD Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 33,763 40,966 21.3%
Cash Flow from Investing Activities Rs m -18,649 -7,892 -
Cash Flow from Financing Activities Rs m -15,572 -32,961 -
Net Cash Flow Rs m -458 113 -
* 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 15.1, an improvement from the EPS of Rs 12.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 83.9, stands at 6.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 2.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 36.7 39.7
TTM Earnings per share Rs 12.0 15.1
Diluted earnings per share Rs 9.6 11.6
Price to Cash Flow x 6.5 6.8
TTM P/E ratio x 5.5 6.9
Price / Book Value ratio x 1.7 1.3
Market Cap Rs m 265,293 332,442
Dividends per share (Unadj.) Rs 4.3 5.5
* 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 2.6x during FY19, from 2.5x during FY18. 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 improved and stood at 179.4x during FY19, from 163.6x during FY18. 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 17.7% during FY19, from 15.6% during FY19. 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 27.7% during FY19, from 25.5% during FY18. 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 15.6% during FY19, from 13.4% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 2.5 2.6
Debtors’ Days Days 46 43
Interest coverage x 163.6 179.4
Debt to equity ratio x 0.0 0.0
Return on assets % 13.4 15.6
Return on equity % 15.6 17.7
Return on capital employed % 25.5 27.7
* 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 down from Rs 119.1 to Rs 83.9, registering a loss of Rs 35.3 or around 29.6%.

Overall, the S&P BSE SENSEX is down 2.7% over the year.

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

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For the quarter ended June 2019, NMDC LTD has posted a net profit of Rs 12 bn (up 20.9% YoY). Sales on the other hand came in at Rs 33 bn (up 34.8% YoY). Read on for a complete analysis of NMDC LTD's quarterly results.

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Dec 20, 2018 | Updated on Dec 20, 2018

Here's an analysis of the annual report of NMDC LTD for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of NMDC LTD. Also includes updates on the valuation of NMDC LTD.

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