X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
NESCO LIMITED 2017-18 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 LIMITED 2017-18 Annual Report Analysis
Wed, 9 Jan

NESCO LIMITED 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.

NESCO LIMITED Income Statement Analysis

  • Operating income during the year rose 3.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 1.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 68.0% in FY18 as against 68.9% in FY17.
  • Depreciation charges increased by 35.7% and finance costs increased by 10.9% YoY, respectively.
  • Other income declined by 16.1% YoY.
  • Net profit for the year grew by 5.2% YoY.
  • Net profit margins during the year grew from 48.0% in FY17 to 50.0% in FY18.

NESCO LIMITED Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 3,114 3,212 3.1%
Other income Rs m 430 361 -16.1%
Total Revenues Rs m 3,544 3,572 0.8%
Gross profit Rs m 2,146 2,185 1.8%
Depreciation Rs m 81 110 35.7%
Interest Rs m 51 56 10.9%
Profit before tax Rs m 2,444 2,379 -2.7%
Tax Rs m 745 592 -20.5%
Profit after tax Rs m 1,700 1,787 5.2%
Gross profit margin % 68.9 68.0
Effective tax rate % 30.5 24.9
Net profit margin % 48.0 50.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NESCO LIMITED Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 1 billion as compared to Rs 624 million in FY17, thereby witnessing an increase of 100.1%.
  • Current assets rose 1% and stood at Rs 1 billion, while fixed assets rose 30% and stood at Rs 6 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 12 billion as against Rs 10 billion during FY17, thereby witnessing a growth of 14%.

NESCO LIMITED Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 8,510 10,111 18.8
 
Current Liabilities Rs m 624 1,248 100.1
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 10,332 11,781 14.0
 
Current assets Rs m 1,206 1,217 0.9
Fixed Assets Rs m 4,501 5,855 30.1
Total Assets Rs m 10,332 11,781 14.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



NESCO LIMITED Cash Flow Statement Analysis

  • NESCO LIMITED's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -191 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 43 million from the Rs -4 million net cash flows seen during FY17.

NESCO LIMITED 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 1,526 1,462 -4.2%
Cash Flow from Investing Activities Rs m -1,530 -1,228 -
Cash Flow from Financing Activities Rs m -1 -191 -
Net Cash Flow Rs m -4 43 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for NESCO LIMITED

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.4, an decline from the EPS of Rs 120.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 475.0, stands at 19.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 11.7 times, while the price to sales ratio stands at 36.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 17.6 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 221.0 45.6
TTM Earnings per share Rs 120.6 25.4
Diluted earnings per share Rs 24.1 25.4
Price to Cash Flow x 3.8 17.6
TTM P/E ratio x 3.9 19.4
Price / Book Value ratio x 3.3 11.7
Market Cap Rs m 6,693 33,466
Dividends per share (Unadj.) Rs 11.0 2.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for NESCO LIMITED

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY18, from 1.9x 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 43.5x during FY18, from 49.4x 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 declined and down at 17.7% during FY18, from 20.0% 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 declined and down at 24.1% during FY18, from 29.3% 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 declined and down at 15.6% during FY18, from 16.9% 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 1.9 1.0
Debtors’ Days Days 14 16
Interest coverage x 49.4 43.5
Debt to equity ratio x 0.0 0.0
Return on assets % 16.9 15.6
Return on equity % 20.0 17.7
Return on capital employed % 29.3 24.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

NESCO LIMITED Share Price Performance

Over the last one year, NESCO LIMITED share price has moved up from Rs 572.0 to Rs 475.0, registering a loss of Rs 97.0 or around 17.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,346.5 (up 0.3%). Over the last one year it has moved down from 20,056.6 to 18,346.5, a loss of 1,710 points (down 8.5%).

Overall, the S&P BSE SENSEX is up 5.3% over the year.

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

Equitymaster requests your view! Post a comment on "NESCO LIMITED 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

NESCO LIMITED Announces Quarterly Results (3QFY19); Net Profit Down 4.1% (Quarterly Result Update)

Feb 22, 2019 | Updated on Feb 22, 2019

For the quarter ended December 2018, NESCO LIMITED has posted a net profit of Rs 420 m (down 4.1% YoY). Sales on the other hand came in at Rs 885 m (up 9.8% YoY). Read on for a complete analysis of NESCO LIMITED's quarterly results.

NESCO LIMITED Announces Quarterly Results (2QFY19); Net Profit Up 1.9% (Quarterly Result Update)

Nov 21, 2018 | Updated on Nov 21, 2018

For the quarter ended September 2018, NESCO LIMITED has posted a net profit of Rs 493 m (up 1.9% YoY). Sales on the other hand came in at Rs 1 bn (up 21.2% YoY). Read on for a complete analysis of NESCO LIMITED's quarterly results.

Garden Reach Shipbuilders and Engineers Ltd: Is This PSU Shipbuilder Worth Betting On? (IPO)

Sep 24, 2018

Should you apply for the IPO of Garden Reach Shipbuilders and Engineers Ltd?

H.G Infra Engineering Ltd. (IPO)

Feb 24, 2018

Should you subscribe to the IPO of H.G Infra Engineering Ltd.?

Amber Enterprises India Ltd. (IPO)

Jan 16, 2018

Should you subscribe to the IPO of Amber Enterprises India Ltd?

More Views on News

Most Popular

This is Why the Stock of Jubilant FoodWorks Went Up 1,160%(The 5 Minute Wrapup)

Apr 12, 2019

This critical business strategy has enabled companies to scale their operations faster.

Pocketing Massive Gains with HDFC And HDFC Bank(Profit Hunter)

Apr 12, 2019

Here's how one could have generated gains of Rs 59,250 in 10 days by trading HDFC and HDFC Bank with a capital of Rs 4 lakh.

My Master Series on How to Trade Election 2019(Profit Hunter)

Apr 16, 2019

For 30 years he has watched how elections impact the markets, and practiced how to profit from it. Now he is here...telling you everything. Read on...

A Simple 3-Point Investing Manifesto for You the Indian Investor(The 5 Minute Wrapup)

Apr 11, 2019

A must have checklist for every investor in the Indian stock market.

Election Series: Follow the World's Biggest Traders To See Where the Money Flows(The 5 Minute Wrapup)

Apr 17, 2019

20% of all the traders bring in 80% of the money. Watch these 20% and you get a working idea of which way the wind is blowing.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK NESCO

COMPARE NESCO WITH

MARKET STATS