SADHANA NITRO 2022-23 Annual Report Analysis

Tue, 20 Feb

SADHANA NITRO 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.

SADHANA NITRO Income Statement Analysis

• Operating income during the year rose 8.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 45.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.8% in FY23 as against 11.1% in FY22.
• Depreciation charges increased by 24.6% and finance costs increased by 113.7% YoY, respectively.
• Other income declined by 63.9% YoY.
• Net profit for the year declined by 48.9% YoY.
• Net profit margins during the year declined from 4.7% in FY22 to 2.2% in FY23.

SADHANA NITRO Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,317	1,433	8.8%
Other income	Rs m	50	18	-63.9%
Total Revenues	Rs m	1,367	1,451	6.2%
Gross profit	Rs m	146	212	45.2%
Depreciation	Rs m	61	76	24.6%
Interest	Rs m	46	98	113.7%
Profit before tax	Rs m	89	57	-36.6%
Tax	Rs m	27	25	-8.0%
Profit after tax	Rs m	62	32	-48.9%
Gross profit margin	%	11.1	14.8
Effective tax rate	%	30.2	43.8
Net profit margin	%	4.7	2.2

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SADHANA NITRO Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -5.8%.
• Long-term debt stood at Rs 598 million as compared to Rs 346 million during FY22, a growth of 72.8%.
• Current assets rose 21% and stood at Rs 3 billion, while fixed assets rose 21% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 21%.

SADHANA NITRO Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,352	2,261	67.3
Current Liabilities	Rs m	1,783	1,680	-5.8
Long-term Debt	Rs m	346	598	72.8
Total Liabilities	Rs m	3,862	4,663	20.7
Current assets	Rs m	2,188	2,640	20.6
Fixed Assets	Rs m	1,674	2,024	20.9
Total Assets	Rs m	3,862	4,663	20.7

SADHANA NITRO Cash Flow Statement Analysis

• SADHANA NITRO's cash flow from operating activities (CFO) during FY23 stood at Rs -378 million, an improvement of 704.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -528 million, an improvement of 36.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 716 million, an improvement of 57% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -190 million from the Rs 20 million net cash flows seen during FY22.

SADHANA NITRO 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	-47	-378	-
Cash Flow from Investing Activities	Rs m	-388	-528	-
Cash Flow from Financing Activities	Rs m	455	716	57.4%
Net Cash Flow	Rs m	20	-190	-

Current Valuations for SADHANA NITRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an decline from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 114.5, stands at 892.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.5 times, while the price to sales ratio stands at 16.1 times.
• The company's price to cash flow (P/CF) ratio stood at 259.1 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	6.7	7.1
TTM Earnings per share	Rs	0.3	0.2
Diluted earnings per share	Rs	0.3	0.1
Price to Cash Flow	x	264.3	259.1
TTM P/E ratio	x	523.9	892.4
Price / Book Value ratio	x	14.0	12.4
Market Cap	Rs m	18,897	27,941
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for SADHANA NITRO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.2x 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 1.6x during FY23, from 3.0x 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 declined and down at 1.4% during FY23, from 4.6% 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 5.4% during FY23, from 7.9% 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 declined and down at 2.8% during FY23, from 2.8% 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	1.2	1.6
Debtors’ Days	Days	1,132	1,669
Interest coverage	x	3.0	1.6
Debt to equity ratio	x	0.3	0.3
Return on assets	%	2.8	2.8
Return on equity	%	4.6	1.4
Return on capital employed	%	7.9	5.4

To see how SADHANA NITRO has performed over the last 5 years, please visit here.

SADHANA NITRO Share Price Performance

Over the last one year, SADHANA NITRO share price has moved down from Rs 131.9 to Rs 114.5, registering a loss of Rs 17.4 or around 13.2%.

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

(To know more, check out historical annual results for SADHANA NITRO and quarterly results for SADHANA NITRO)