NLC INDIA 2022-23 Annual Report Analysis

Fri, 31 Mar

NLC INDIA 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.

NLC INDIA Income Statement Analysis

• Operating income during the year rose 35.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 25.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.6% in FY23 as against 41.0% in FY22.
• Depreciation charges decreased by 5.7% and finance costs increased by 2.8% YoY, respectively.
• Other income grew by 103.7% YoY.
• Net profit for the year grew by 27.8% YoY.
• Net profit margins during the year declined from 9.3% in FY22 to 8.8% in FY23.

NLC INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	119,479	161,652	35.3%
Other income	Rs m	5,980	12,180	103.7%
Total Revenues	Rs m	125,460	173,832	38.6%
Gross profit	Rs m	48,976	36,503	-25.5%
Depreciation	Rs m	19,087	18,008	-5.7%
Interest	Rs m	9,838	10,117	2.8%
Profit before tax	Rs m	26,031	20,558	-21.0%
Tax	Rs m	14,880	6,307	-57.6%
Profit after tax	Rs m	11,151	14,251	27.8%
Gross profit margin	%	41.0	22.6
Effective tax rate	%	57.2	30.7
Net profit margin	%	9.3	8.8

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NLC INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 114 billion as compared to Rs 100 billion in FY22, thereby witnessing an increase of 14.5%.
• Long-term debt down at Rs 185 billion as compared to Rs 188 billion during FY22, a fall of 1.8%.
• Current assets rose 5% and stood at Rs 118 billion, while fixed assets rose 5% and stood at Rs 415 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 533 billion as against Rs 508 billion during FY22, thereby witnessing a growth of 5%.

NLC INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	141,892	151,688	6.9
Current Liabilities	Rs m	99,886	114,418	14.5
Long-term Debt	Rs m	188,453	184,982	-1.8
Total Liabilities	Rs m	508,068	532,957	4.9
Current assets	Rs m	112,919	118,028	4.5
Fixed Assets	Rs m	395,149	414,928	5.0
Total Assets	Rs m	508,068	532,957	4.9

NLC INDIA Cash Flow Statement Analysis

• NLC INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 38 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -21 billion, an improvement of 173.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -17 billion, an improvement of 75% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -619 million from the Rs -179 million net cash flows seen during FY22.

NLC INDIA 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	77,461	37,614	-51.4%
Cash Flow from Investing Activities	Rs m	-7,626	-20,886	-
Cash Flow from Financing Activities	Rs m	-70,014	-17,347	-
Net Cash Flow	Rs m	-179	-619	-

Current Valuations for NLC INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.3, an improvement from the EPS of Rs 8.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 77.2, stands at 7.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 3.3 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	86.2	116.6
TTM Earnings per share	Rs	8.0	10.3
Diluted earnings per share	Rs	8.0	10.3
Price to Cash Flow	x	2.9	3.3
TTM P/E ratio	x	7.8	7.5
Price / Book Value ratio	x	0.6	0.7
Market Cap	Rs m	87,531	106,494
Dividends per share (Unadj.)	Rs	3.0	3.5

Ratio Analysis for NLC INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.1x 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 3.0x during FY23, from 3.6x 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 improved and stood at 9.4% during FY23, from 7.9% 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 9.1% during FY23, from 10.9% 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 improved and stood at 4.6% during FY23, from 4.1% 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	1.1	1.0
Debtors’ Days	Days	11	10
Interest coverage	x	3.6	3.0
Debt to equity ratio	x	1.3	1.2
Return on assets	%	4.1	4.6
Return on equity	%	7.9	9.4
Return on capital employed	%	10.9	9.1

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 62.6 to Rs 77.2, registering a gain of Rs 14.6 or around 23.4%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 3,605.8 (up 0.5%). Over the last one year it has moved down from 4,043.6 to 3,605.8, a loss of 438 points (down 10.8%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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