NATIONAL PEROXIDE 2022-23 Annual Report Analysis

Tue, 20 Feb

NATIONAL PEROXIDE 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.

NATIONAL PEROXIDE Income Statement Analysis

• Operating income during the year fell 99.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1466.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19878.0% in FY23 as against 10.6% in FY22.
• Depreciation charges decreased by 100.0% and finance costs decreased by 100.0% YoY, respectively.
• Other income declined by 100.0% YoY.
• Net profit for the year grew by 6810.7% YoY.
• Net profit margins during the year grew from 2.4% in FY22 to 19833.5% in FY23.

NATIONAL PEROXIDE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,259	19	-99.2%
Other income	Rs m	102	0	-100.0%
Total Revenues	Rs m	2,362	19	-99.2%
Gross profit	Rs m	240	3,761	1,466.7%
Depreciation	Rs m	174	0	-100.0%
Interest	Rs m	88	0	-100.0%
Profit before tax	Rs m	79	3,761	4,631.9%
Tax	Rs m	25	8	-66.6%
Profit after tax	Rs m	54	3,753	6,810.7%
Gross profit margin	%	10.6	19,878.0
Effective tax rate	%	31.7	0.2
Net profit margin	%	2.4	19,833.5

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NATIONAL PEROXIDE Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 15 million as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -98.6%.
• Current assets fell 97% and stood at Rs 32 million, while fixed assets fell 35% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 12 billion during FY22, thereby witnessing a fall of 41%.

NATIONAL PEROXIDE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	9,106	5,573	-38.8
Current Liabilities	Rs m	1,080	15	-98.6
Long-term Debt	Rs m	138	0	-100.0
Total Liabilities	Rs m	12,469	7,373	-40.9
Current assets	Rs m	1,247	32	-97.4
Fixed Assets	Rs m	11,222	7,341	-34.6
Total Assets	Rs m	12,469	7,373	-40.9

NATIONAL PEROXIDE Cash Flow Statement Analysis

• NATIONAL PEROXIDE's cash flow from operating activities (CFO) during FY23 stood at Rs 14 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 14 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -29 million, an improvement of 94% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -5 million from the Rs -58 million net cash flows seen during FY22.

NATIONAL PEROXIDE 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	94	14	-84.6%
Cash Flow from Investing Activities	Rs m	339	14	-95.8%
Cash Flow from Financing Activities	Rs m	-491	-29	-
Net Cash Flow	Rs m	-58	-5	-

Current Valuations for NATIONAL PEROXIDE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 652.6, an improvement from the EPS of Rs 9.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,237.6, stands at 16.7 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 376.1 times.
• The company's price to cash flow (P/CF) ratio stood at 2.4 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	392.9	3.3
TTM Earnings per share	Rs	9.4	652.6
Diluted earnings per share	Rs	9.4	653.0
Price to Cash Flow	x	39.9	2.4
TTM P/E ratio	x	168.0	16.7
Price / Book Value ratio	x	1.4	1.6
Market Cap	Rs m	12,564	9,120
Dividends per share (Unadj.)	Rs	5.0	1.0

Ratio Analysis for NATIONAL PEROXIDE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY23, from 1.2x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 67.3% during FY23, from 0.6% 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 improved and stood at 67.5% during FY23, from 1.8% 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 improved and stood at 50.9% during FY23, from 1.1% 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	1.2	2.2
Debtors’ Days	Days	305	1,929
Interest coverage	x	1.9	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.1	50.9
Return on equity	%	0.6	67.3
Return on capital employed	%	1.8	67.5

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

NATIONAL PEROXIDE Share Price Performance

Over the last one year, NATIONAL PEROXIDE share price has moved down from Rs 1,587.2 to Rs 1,237.6, registering a loss of Rs 349.6 or around 22.0%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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