NILKAMAL 2021-22 Annual Report Analysis
Wed, 22 Jun

NILKAMAL has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

NILKAMAL Income Statement Analysis

  • Operating income during the year rose 30.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 12.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.2% in FY22 as against 12.2% in FY21.
  • Depreciation charges increased by 4.0% and finance costs increased by 17.7% YoY, respectively.
  • Other income declined by 26.0% YoY.
  • Net profit for the year declined by 30.3% YoY.
  • Net profit margins during the year declined from 5.3% in FY21 to 2.8% in FY22.

NILKAMAL Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 20,922 27,301 30.5%
Other income Rs m 160 119 -26.0%
Total Revenues Rs m 21,082 27,420 30.1%
Gross profit Rs m 2,558 2,238 -12.5%
Depreciation Rs m 972 1,010 4.0%
Interest Rs m 262 309 17.7%
Profit before tax Rs m 1,485 1,038 -30.1%
Tax Rs m 370 261 -29.5%
Profit after tax Rs m 1,115 777 -30.3%
Gross profit margin % 12.2 8.2
Effective tax rate % 24.9 25.1
Net profit margin % 5.3 2.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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NILKAMAL Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 4 billion as compared to Rs 3 billion in FY21, thereby witnessing an increase of 26.8%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 285 million during FY21, a growth of 309.8%.
  • Current assets rose 15% and stood at Rs 11 billion, while fixed assets rose 11% and stood at Rs 8 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 20 billion as against Rs 17 billion during FY21, thereby witnessing a growth of 13%.

NILKAMAL Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 11,394 12,015 5.5
 
Current Liabilities Rs m 3,173 4,024 26.8
Long-term Debt Rs m 285 1,170 309.8
Total Liabilities Rs m 17,238 19,533 13.3
 
Current assets Rs m 9,988 11,451 14.7
Fixed Assets Rs m 7,250 8,082 11.5
Total Assets Rs m 17,238 19,533 13.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



NILKAMAL Cash Flow Statement Analysis

  • NILKAMAL's cash flow from operating activities (CFO) during FY22 stood at Rs 691 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -889 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 596 million, an improvement of 184% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 343 million from the Rs 127 million net cash flows seen during FY21.

NILKAMAL Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 2,030 691 -66.0%
Cash Flow from Investing Activities Rs m -1,209 -889 -
Cash Flow from Financing Activities Rs m -706 596 -
Net Cash Flow Rs m 127 343 170.5%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for NILKAMAL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 52.1, an decline from the EPS of Rs 74.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,711.6, stands at 32.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 20.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 1,402.3 1,829.8
TTM Earnings per share Rs 74.7 52.1
Diluted earnings per share Rs 74.7 52.1
Price to Cash Flow x 13.9 20.9
TTM P/E ratio x 26.1 32.9
Price / Book Value ratio x 2.0 3.1
Market Cap Rs m 22,306 37,352
Dividends per share (Unadj.) Rs 15.0 15.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for NILKAMAL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.8x during FY22, from 3.1x during FY21. 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 4.4x during FY22, from 6.7x during FY21. 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 6.5% during FY22, from 9.8% during FY22. 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 10.2% during FY22, from 15.0% during FY21. 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 5.6% during FY22, from 8.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 3.1 2.8
Debtors’ Days Days 537 420
Interest coverage x 6.7 4.4
Debt to equity ratio x 0.0 0.1
Return on assets % 8.0 5.6
Return on equity % 9.8 6.5
Return on capital employed % 15.0 10.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

NILKAMAL Share Price Performance

Over the last one year, NILKAMAL share price has moved down from Rs 2,229.4 to Rs 1,711.6, registering a loss of Rs 517.9 or around 23.2%.

Overall, the S&P BSE SENSEX is down 1.0% over the year.

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

Annual Report FAQs

What is the current share price of NILKAMAL?

NILKAMAL currently trades at Rs 2,050.1 per share. You can check out the latest share price performance of NILKAMAL here...

What was the revenue of NILKAMAL in FY22? How does it compare to earlier years?

The revenues of NILKAMAL stood at Rs 27,420 m in FY22, which was up 30.1% compared to Rs 21,082 m reported in FY21.

NILKAMAL's revenue has grown from Rs 20,912 m in FY18 to Rs 27,420 m in FY22.

Over the past 5 years, the revenue of NILKAMAL has grown at a CAGR of 7.0%.

What was the net profit of NILKAMAL in FY22? How does it compare to earlier years?

The net profit of NILKAMAL stood at Rs 777 m in FY22, which was down -30.3% compared to Rs 1,115 m reported in FY21.

This compares to a net profit of Rs 1,361 m in FY20 and a net profit of Rs 1,106 m in FY19.

Over the past 5 years, NILKAMAL net profit has grown at a CAGR of -9.7%.

What does the cash flow statement of NILKAMAL 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 NILKAMAL reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 691 m as compared to Rs 2,030 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -889 m as compared to Rs -1,209 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 596 m as compared to Rs -706 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations1,2071,7482,5192,030691
From Investments-957-1,065-1,524-1,209-889
From Financial Activity-203-725-997-706596
Net Cashflow42-4352127343

What does the Key Ratio analysis of NILKAMAL 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 NILKAMAL reveals:

  • Operating profit margins witnessed a fall and stood at 8.2% in FY22 as against 12.2% in FY21.
  • Net profit margins declined from 5.3% in FY21 to 2.8% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.1 as compared to 0.0 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)11.69.112.612.28.2
Net Profit Margin (%)5.64.76.05.32.8
Debt to Equity Ratio (x)0.00.00.00.00.1