NLC INDIA 2020-21 Annual Report Analysis

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NLC INDIA 2020-21 Annual Report Analysis
Tue, 26 Oct

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 12.2% in FY20 to 10.9% 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 % 12.2 10.9
* 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 63.9, stands at 6.5 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 3.0 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 3.2 3.0
TTM P/E ratio x 6.5 6.5
Price / Book Value ratio x 0.6 0.5
Market Cap Rs m 88,537 88,537
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 49.4 to Rs 63.9, registering a gain of Rs 14.5 or around 29.4%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 3,462.1 (up 0.3%). Over the last one year it has moved up from 1,683.6 to 3,462.1, a gain of 1,779 points (up 105.6%).

Overall, the S&P BSE SENSEX is up 51.0% over the year.

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

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