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NLC INDIA 2020-21 Annual Report Analysis
Wed, 31 Mar

NLC INDIA has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

NLC INDIA Income Statement Analysis

  • Operating income during the year fell 4.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 18.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.2% in FY21 as against 31.8% in FY20.
  • Depreciation charges increased by 18.7% and finance costs increased by 11.8% YoY, respectively.
  • Other income grew by 57.2% YoY.
  • Net profit for the year declined by 7.4% YoY.
  • Net profit margins during the year declined from 14.1% in FY20 to 13.7% in FY21.

NLC INDIA Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 103,206 98,461 -4.6%
Other income Rs m 15,750 24,755 57.2%
Total Revenues Rs m 118,956 123,216 3.6%
Gross profit Rs m 32,786 26,757 -18.4%
Depreciation Rs m 13,342 15,842 18.7%
Interest Rs m 11,744 13,126 11.8%
Profit before tax Rs m 23,451 22,544 -3.9%
Tax Rs m 8,930 9,090 1.8%
Profit after tax Rs m 14,522 13,454 -7.4%
Gross profit margin % 31.8 27.2
Effective tax rate % 38.1 40.3
Net profit margin % 14.1 13.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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NLC INDIA Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 160 billion as compared to Rs 167 billion in FY20, thereby witnessing an decrease of -4.1%.
  • Long-term debt down at Rs 189 billion as compared to Rs 189 billion during FY20, a fall of 0.0%.
  • Current assets rose 2% and stood at Rs 161 billion, while fixed assets rose 3% and stood at Rs 391 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 552 billion as against Rs 537 billion during FY20, thereby witnessing a growth of 3%.

NLC INDIA Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 129,051 141,004 9.3
 
Current Liabilities Rs m 167,181 160,319 -4.1
Long-term Debt Rs m 189,432 189,344 0.0
Total Liabilities Rs m 536,872 552,319 2.9
 
Current assets Rs m 158,888 161,466 1.6
Fixed Assets Rs m 377,985 390,853 3.4
Total Assets Rs m 536,872 552,319 2.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



NLC INDIA Cash Flow Statement Analysis

  • NLC INDIA's cash flow from operating activities (CFO) during FY21 stood at Rs 44 billion, an improvement of 166.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -22 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -20 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs -15 million net cash flows seen during FY20.

NLC INDIA Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 16,468 43,897 166.6%
Cash Flow from Investing Activities Rs m -58,118 -22,123 -
Cash Flow from Financing Activities Rs m 41,635 -20,371 -
Net Cash Flow Rs m -15 1,404 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for NLC INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.7, an decline from the EPS of Rs 10.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 50.5, stands at 5.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.7 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-20* 12 Mar-21*
Sales per share (Unadj.) Rs 74.4 71.0
TTM Earnings per share Rs 10.5 9.7
Diluted earnings per share Rs 10.5 9.7
Price to Cash Flow x 2.2 2.4
TTM P/E ratio x 4.2 5.2
Price / Book Value ratio x 0.6 0.5
Market Cap Rs m 74,566 69,297
Dividends per share (Unadj.) Rs 7.1 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for NLC INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY21, from 1.0x during FY20. 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 2.7x during FY21, from 3.0x during FY20. 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 9.5% during FY21, from 11.3% during FY21. 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 10.8% during FY21, from 11.1% during FY20. 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 4.8% during FY21, from 4.9% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.0 1.0
Debtors’ Days Days 30 28
Interest coverage x 3.0 2.7
Debt to equity ratio x 1.5 1.3
Return on assets % 4.9 4.8
Return on equity % 11.3 9.5
Return on capital employed % 11.1 10.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

NLC INDIA Share Price Performance

Over the last one year, NLC INDIA share price has moved up from Rs 44.0 to Rs 50.5, registering a gain of Rs 6.5 or around 14.7%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,475.1 (down 1.4%). Over the last one year it has moved up from 1,378.0 to 2,475.1, a gain of 1,097 points (up 79.6%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Annual Report FAQs

What is the current share price of NLC INDIA?

NLC INDIA currently trades at Rs 208.4 per share. You can check out the latest share price performance of NLC INDIA here...

What was the revenue of NLC INDIA in FY21? How does it compare to earlier years?

The revenues of NLC INDIA stood at Rs 123,216 m in FY21, which was up 3.6% compared to Rs 118,956 m reported in FY20.

NLC INDIA's revenue has grown from Rs 118,716 m in FY17 to Rs 123,216 m in FY21.

Over the past 5 years, the revenue of NLC INDIA has grown at a CAGR of 0.9%.

What was the net profit of NLC INDIA in FY21? How does it compare to earlier years?

The net profit of NLC INDIA stood at Rs 13,454 m in FY21, which was down -7.4% compared to Rs 14,522 m reported in FY20.

This compares to a net profit of Rs 15,374 m in FY19 and a net profit of Rs 19,568 m in FY18.

Over the past 5 years, NLC INDIA net profit has grown at a CAGR of -14.0%.

What does the cash flow statement of NLC INDIA reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of NLC INDIA reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 43,897 m as compared to Rs 16,468 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -22,123 m as compared to Rs -58,118 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -20,371 m as compared to Rs 41,635 m in FY20.

Here's the cash flow statement of NLC INDIA for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations12,25345,33416,20116,46843,897
From Investments-43,318-45,931-61,191-58,118-22,123
From Financial Activity-67898244,15641,635-20,371
Net Cashflow-31,743385-834-151,404

What does the Key Ratio analysis of NLC INDIA reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of NLC INDIA reveals:

  • Operating profit margins witnessed a fall and stood at 27.2% in FY21 as against 31.8% in FY20.
  • Net profit margins declined from 14.1% in FY20 to 13.7% in FY21.
  • Debt to Equity ratio for FY21 stood at 1.3 as compared to 1.5 in FY20.

Here's the ratio/financial analysis of NLC INDIA for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)27.728.519.131.827.2
Net Profit Margin (%)22.317.415.614.113.7
Debt to Equity Ratio (x)0.70.71.11.51.3

Read: Latest Annual Report Analysis of NLC INDIA

 

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