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NLC INDIA 2017-18 Annual Report Analysis
Sat, 31 Mar

NLC INDIA 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.

NLC INDIA Income Statement Analysis

  • Operating income during the year rose 2.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 5.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.5% in FY18 as against 27.7% in FY17.
  • Depreciation charges increased by 18.0% and finance costs decreased by 6.9% YoY, respectively.
  • Other income grew by 59.4% YoY.
  • Net profit for the year declined by 20.3% YoY.
  • Net profit margins during the year declined from 22.3% in FY17 to 17.4% in FY18.

NLC INDIA Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 110,030 112,755 2.5%
Other income Rs m 8,686 13,843 59.4%
Total Revenues Rs m 118,716 126,598 6.6%
Gross profit Rs m 30,525 32,159 5.4%
Depreciation Rs m 10,435 12,316 18.0%
Interest Rs m 5,883 5,479 -6.9%
Profit before tax Rs m 22,893 28,207 23.2%
Tax Rs m -1,674 8,639 -616.1%
Profit after tax Rs m 24,567 19,568 -20.3%
Gross profit margin % 27.7 28.5
Effective tax rate % -7.3 30.6
Net profit margin % 22.3 17.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

NLC INDIA Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 126 billion as compared to Rs 117 billion in FY17, thereby witnessing an increase of 7.5%.
  • Long-term debt stood at Rs 94 billion as compared to Rs 85 billion during FY17, a growth of 9.9%.
  • Current assets fell 1% and stood at Rs 117 billion, while fixed assets rose 16% and stood at Rs 272 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 389 billion as against Rs 352 billion during FY17, thereby witnessing a growth of 11%.

NLC INDIA Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 121,265 133,520 10.1
 
Current Liabilities Rs m 116,917 125,706 7.5
Long-term Debt Rs m 85,366 93,803 9.9
Total Liabilities Rs m 351,628 389,114 10.7
 
Current assets Rs m 117,614 116,755 -0.7
Fixed Assets Rs m 234,014 272,359 16.4
Total Assets Rs m 351,628 389,114 10.7
* 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 FY18 stood at Rs 45 billion, an improvement of 270.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -46 billion, an improvement of 6.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 982 million, an improvement of 245% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 385 million from the Rs -32 billion net cash flows seen during FY17.

NLC INDIA 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 12,253 45,334 270.0%
Cash Flow from Investing Activities Rs m -43,318 -45,931 -
Cash Flow from Financing Activities Rs m -678 982 -
Net Cash Flow Rs m -31,743 385 -
* 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 12.8, an decline from the EPS of Rs 16.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 83.9, stands at 6.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.8 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 72.0 73.8
TTM Earnings per share Rs 16.1 12.8
Diluted earnings per share Rs 17.7 14.1
Price to Cash Flow x 4.3 4.8
TTM P/E ratio x 4.6 6.1
Price / Book Value ratio x 1.2 1.2
Market Cap Rs m 145,596 154,615
Dividends per share (Unadj.) Rs 7.3 4.5
* 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 deteriorated and stood at 0.9x during FY18, from 1.0x 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 improved and stood at 6.1x during FY18, from 4.9x 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 14.7% during FY18, from 20.3% 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 improved and stood at 14.8% during FY18, from 13.9% 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 6.4% during FY18, from 8.7% 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 1.0 0.9
Debtors’ Days Days 16 15
Interest coverage x 4.9 6.1
Debt to equity ratio x 0.7 0.7
Return on assets % 8.7 6.4
Return on equity % 20.3 14.7
Return on capital employed % 13.9 14.8
* 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 down from Rs 107.4 to Rs 83.9, registering a loss of Rs 23.5 or around 21.9%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 2,125.8 (down 1.1%). Over the last one year it has moved down from 2,274.4 to 2,125.8, a loss of 149 points (down 6.5%).

Overall, the S&P BSE SENSEX is up 12.1% 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 228.1 per share. You can check out the latest share price performance of NLC INDIA here...

What was the revenue of NLC INDIA in FY18? How does it compare to earlier years?

The revenues of NLC INDIA stood at Rs 126,598 m in FY18, which was up 6.6% compared to Rs 118,716 m reported in FY17.

NLC INDIA's revenue has grown from Rs 84,345 m in FY16 to Rs 126,598 m in FY18.

Over the past 3 years, the revenue of NLC INDIA has grown at a CAGR of 22.5%.

What was the net profit of NLC INDIA in FY18? How does it compare to earlier years?

The net profit of NLC INDIA stood at Rs 19,568 m in FY18, which was down -20.3% compared to Rs 24,567 m reported in FY17.

This compares to a net profit of Rs 680 m in FY16.

Over the past 3 years, NLC INDIA net profit has grown at a CAGR of 436.6%.

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 FY18 and stood at Rs 45,334 m as compared to Rs 12,253 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -45,931 m as compared to Rs -43,318 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs 982 m as compared to Rs -678 m in FY17.

Here's the cash flow statement of NLC INDIA for the past 3 years.

(Rs m)FY16FY17FY18
From Operations13,00512,25345,334
From Investments-13,797-43,318-45,931
From Financial Activity627-678982
Net Cashflow-165-31,743385

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 down at 28.5% in FY18 as against 27.7% in FY17.
  • Net profit margins declined from 22.3% in FY17 to 17.4% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.7 as compared to 0.7 in FY17.

Here's the ratio/financial analysis of NLC INDIA for the past 3 years.

 FY16FY17FY18
Operating Profit Margin (%)19.327.728.5
Net Profit Margin (%)0.922.317.4
Debt to Equity Ratio (x)0.60.70.7

Read: Latest Annual Report Analysis of NLC INDIA

 

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