NESCO 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

NESCO 2018-19 Annual Report Analysis
Wed, 10 Jul

NESCO 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.

NESCO Income Statement Analysis

  • Operating income during the year rose 12.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 5.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 64.4% in FY19 as against 68.0% in FY18.
  • Depreciation charges increased by 7.6% and finance costs decreased by 15.9% YoY, respectively.
  • Other income declined by 8.3% YoY.
  • Net profit for the year grew by 1.0% YoY.
  • Net profit margins during the year declined from 50.0% in FY18 to 45.9% in FY19.

NESCO Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 3,212 3,596 12.0%
Other income Rs m 361 331 -8.3%
Total Revenues Rs m 3,572 3,927 9.9%
Gross profit Rs m 2,185 2,314 5.9%
Depreciation Rs m 110 119 7.6%
Interest Rs m 56 47 -15.9%
Profit before tax Rs m 2,379 2,479 4.2%
Tax Rs m 592 675 14.0%
Profit after tax Rs m 1,787 1,804 1.0%
Gross profit margin % 68.0 64.4
Effective tax rate % 24.9 27.2
Net profit margin % 50.0 45.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NESCO Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 906 million as compared to Rs 1 billion in FY18, thereby witnessing an decrease of -30.1%.
  • Current assets fell 40% and stood at Rs 703 million, while fixed assets rose 23% and stood at Rs 7 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 13 billion as against Rs 12 billion during FY18, thereby witnessing a growth of 14%.

NESCO Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 10,111 11,705 15.8
 
Current Liabilities Rs m 1,297 906 -30.1
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 11,829 13,487 14.0
 
Current assets Rs m 1,179 703 -40.4
Fixed Assets Rs m 5,855 7,220 23.3
Total Assets Rs m 11,829 13,487 14.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NESCO Cash Flow Statement Analysis

  • NESCO's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion, an improvement of 16.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -2 billion, an improvement of 26.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -198 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -37 million from the Rs 43 million net cash flows seen during FY18.

NESCO 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 1,462 1,708 16.8%
Cash Flow from Investing Activities Rs m -1,228 -1,548 -
Cash Flow from Financing Activities Rs m -191 -198 -
Net Cash Flow Rs m 43 -37 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for NESCO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.6, an improvement from the EPS of Rs 25.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 557.8, stands at 22.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 9.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.4 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 45.6 51.0
TTM Earnings per share Rs 25.4 25.6
Diluted earnings per share Rs 25.4 25.6
Price to Cash Flow x 20.7 20.4
TTM P/E ratio x 22.0 22.0
Price / Book Value ratio x 11.7 3.0
Market Cap Rs m 39,303 39,300
Dividends per share (Unadj.) Rs 2.3 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for NESCO

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY19, from 0.9x 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 53.6x during FY19, from 43.5x 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 declined and down at 15.4% during FY19, from 17.7% 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 declined and down at 21.6% during FY19, from 24.1% 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 declined and down at 13.7% during FY19, from 15.6% 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 0.9 0.8
Debtors’ Days Days 16 18
Interest coverage x 43.5 53.6
Debt to equity ratio x 0.0 0.0
Return on assets % 15.6 13.7
Return on equity % 17.7 15.4
Return on capital employed % 24.1 21.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

NESCO Share Price Performance

Over the last one year, NESCO share price has moved up from Rs 512.6 to Rs 557.8, registering a gain of Rs 45.3 or around 8.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 19,221.5 (down 0.1%). Over the last one year it has moved up from 17,936.3 to 19,221.5, a gain of 1,285 points (up 7.2%).

Overall, the S&P BSE SENSEX is up 8.1% over the year.

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

Equitymaster requests your view! Post a comment on "NESCO 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

NESCO Announces Quarterly Results (1QFY21); Net Profit Up 35.8% (Quarterly Result Update)

Sep 1, 2020 | Updated on Sep 1, 2020

For the quarter ended June 2020, NESCO has posted a net profit of Rs 514 m (up 35.8% YoY). Sales on the other hand came in at Rs 693 m (down 11.4% YoY). Read on for a complete analysis of NESCO's quarterly results.

NESCO Announces Quarterly Results (4QFY20); Net Profit Up 3.0% (Quarterly Result Update)

May 21, 2020 | Updated on May 21, 2020

For the quarter ended March 2020, NESCO has posted a net profit of Rs 529 m (up 3.0% YoY). Sales on the other hand came in at Rs 1 bn (up 25.9% YoY). Read on for a complete analysis of NESCO's quarterly results.

Mindspace Business Parks REIT IPO - Should You Apply? (IPO)

Jul 27, 2020

Should you apply for the IPO of Mindspace Business Parks REIT?

More Views on News

Most Popular

Time to Buy Smallcaps?(Fast Profits Daily)

Apr 30, 2021

In this video, I'll show you why I favour smallcaps over the Nifty.

The Next Smallcap Winners(Profit Hunter)

Apr 30, 2021

Price is the only due diligence one might require to buy this business.

Sell in May and Go Away?(Fast Profits Daily)

Apr 28, 2021

Does the concept of selling stocks in the month of May, work in the Indian market?

This Fund Manager Has Taken the World by Storm. Will You Invest With Her?(Profit Hunter)

Apr 26, 2021

Should you invest with this Rockstar fund manager who has outperformed in a big way?

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

TRACK NESCO

NESCO - IIFL FINANCE COMPARISON

COMPARE NESCO WITH

MARKET STATS