NUVOCO VISTAS 2022-23 Annual Report Analysis

Sun, 9 Jul

NUVOCO VISTAS 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.

NUVOCO VISTAS Income Statement Analysis

• Operating income during the year rose 13.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 46.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.6% in FY23 as against 16.1% in FY22.
• Depreciation charges increased by 3.6% and finance costs decreased by 10.2% YoY, respectively.
• Other income declined by 64.5% YoY.
• Net profit for the year declined by 50.6% YoY.
• Net profit margins during the year declined from 0.3% in FY22 to 0.1% in FY23.

NUVOCO VISTAS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	93,180	105,862	13.6%
Other income	Rs m	372	132	-64.5%
Total Revenues	Rs m	93,553	105,994	13.3%
Gross profit	Rs m	15,016	8,046	-46.4%
Depreciation	Rs m	9,180	9,511	3.6%
Interest	Rs m	5,699	5,119	-10.2%
Profit before tax	Rs m	509	-6,452	NA
Tax	Rs m	188	-6,611	NA
Profit after tax	Rs m	321	159	-50.6%
Gross profit margin	%	16.1	7.6
Effective tax rate	%	37.0	102.5
Net profit margin	%	0.3	0.1

Revealed: A Potential Huge Investing Opportunity for Investors

NUVOCO VISTAS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 53 billion as compared to Rs 45 billion in FY22, thereby witnessing an increase of 17.3%.
• Long-term debt down at Rs 33 billion as compared to Rs 42 billion during FY22, a fall of 20.5%.
• Current assets fell 3% and stood at Rs 25 billion, while fixed assets fell 3% and stood at Rs 165 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 190 billion as against Rs 196 billion during FY22, thereby witnessing a fall of 3%.

NUVOCO VISTAS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	88,212	88,390	0.2
Current Liabilities	Rs m	44,929	52,680	17.3
Long-term Debt	Rs m	41,834	33,254	-20.5
Total Liabilities	Rs m	196,148	189,877	-3.2
Current assets	Rs m	25,926	25,238	-2.7
Fixed Assets	Rs m	170,222	164,639	-3.3
Total Assets	Rs m	196,148	189,877	-3.2

NUVOCO VISTAS Cash Flow Statement Analysis

• NUVOCO VISTAS's cash flow from operating activities (CFO) during FY23 stood at Rs 17 billion, an improvement of 40.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 36.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -14 billion, an improvement of 4% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 894 million from the Rs -4 billion net cash flows seen during FY22.

NUVOCO VISTAS 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	12,209	17,114	40.2%
Cash Flow from Investing Activities	Rs m	-1,903	-2,604	-
Cash Flow from Financing Activities	Rs m	-14,202	-13,617	-
Net Cash Flow	Rs m	-3,897	894	-

Current Valuations for NUVOCO VISTAS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an decline from the EPS of Rs 0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 352.4, stands at 793.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 13.6 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	260.9	296.4
TTM Earnings per share	Rs	0.9	0.4
Diluted earnings per share	Rs	0.9	0.4
Price to Cash Flow	x	14.8	13.6
TTM P/E ratio	x	439.2	793.6
Price / Book Value ratio	x	1.8	1.5
Market Cap	Rs m	155,729	131,255
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NUVOCO VISTAS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY23, from 0.6x 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 -0.3x during FY23, from 1.1x 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 0.2% during FY23, from 0.4% 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 -1.1% during FY23, from 4.8% 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 declined and down at 2.8% during FY23, from 3.1% 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	0.6	0.5
Debtors’ Days	Days	2	2
Interest coverage	x	1.1	-0.3
Debt to equity ratio	x	0.5	0.4
Return on assets	%	3.1	2.8
Return on equity	%	0.4	0.2
Return on capital employed	%	4.8	-1.1

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

NUVOCO VISTAS Share Price Performance

Over the last one year, NUVOCO VISTAS share price has moved up from Rs 290.9 to Rs 352.4, registering a gain of Rs 61.5 or around 21.1%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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