Naga Limited Annual Report

Naga Limited (Naga Limited ) Return Comparision with Primex 40 Index

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Naga Limited

Naga Limited Balance Sheet (In Rs. Crore)

Particulars	31st March 2022	31st March 2021	31st March 2020
Non-Current Assets:
Fixed Assets	313.2	289.78	280.46
Property, Plant and Equipment	283.72	273.05	268.37
Capital Work in Progress	21.12	15.33	10.67
Intangible Assets	1.13	1.4	1.42
Non-current Investments
Investment Properties	10.27	0	0
Investments in Subsidiaries, Associates and Joint venture	0.52	0.33	2.83
Financial Assets :
Investments - Long-term	3.06	2.5	0
Others Financial Assets - Long-term	9.89	8.71	8.28
Other Non-current Assets	12.51	10.91	6.99
Total Reported Non-current Assets	349.45	312.23	298.56
Current Assets:
Inventories	164.47	188.37	158.14
Financial Assets :
Trade Receivables	88.99	50.65	56.45
Cash and Cash Equivalents	3.68	4.64	18.69
Bank Balances Other Than Cash and Cash Equivalents	4.98	7.3	4.7
Loans - Short-term	0.44	0.41	0.57
Others Financial Assets - Short-term	0.87	2.6	0
Current Tax Assets - Short-term	1.24	2.1	2.49
Other Current Assets	20.72	12.24	19.18
Total Current Assets	285.39	268.31	260.22
Total Non-Current and Other Assets	349.45	312.23	298.56
Total Assets	634.84	580.54	558.78
EQUITY AND LIABILITIES
Share Capital	14.25	14.25	14.25
Other Equity	144.15	132.82	121.08
Total Equity	158.4	147.07	135.33
Non-Current Liabilities:
Long Term Borrowings	183.7	191.71	180.85
Long-term Provisions	2.73	2.25	2.84
Deferred Tax Liabilities (Net)	14.03	12.72	14.4
Total Reported Non-current Liabilities	200.46	206.68	200.87
Current Liabilities:
Short Term Borrowings	145.59	109.61	101.33
Trade Payables	101.07	101.28	78.56
Others Financial Liabilities - Short-term	13.52	9.46	33.23
Provisions	1.04	0.47	0.14
Other Current Liabilities	14.76	5.97	9.32
Total Current Liabilities	275.98	226.79	222.58
Total Equity and Liabilities	634.84	580.54	558.78

Naga Limited Profit & Loss Statement (In Rs. Crore)

Particulars	2022	2021	2020
Revenue From Operations	1,726.80	1,506.63	1,003.30
Other Income	5.6	2.07	6.37
Total Revenue	1,732.40	1,508.70	1,009.67
EXPENSES:
Cost of Material Consumed	1,387.27	1,241.54	827.57
Purchases of Stock-in-Trade	65.71	44.85	0.36
Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	19.8	-13.38	-29.46
Employee Benefits / Salaries & other Staff Cost	55.52	48.71	42.09
Finance Cost	29.99	32.82	33.63
Depreciation and Amortization	36.97	35.62	33.06
Other Expenses	120.31	102.6	94.17
Total Expenses	1,715.57	1,492.76	1,001.42
Profit Before Exceptional Items and Tax	16.83	15.94	8.25
Profit Before Extraordinary Items and Tax	16.83	15.94	8.25
Profit Before Tax	16.83	15.94	8.25
Tax Expenses	4.31	3.18	-4.15
Current Tax	3.07	4.99	1.35
Deferred Tax	4.31	-1.81	-5.5
Other Tax Adjustments	-3.07	0	0
Current Tax - MAT / MAT Credit Entitlement	-3.07	0	0
Profit After Tax	12.52	12.76	12.4
Earnings Per Share - Basic	8.79	8.96	8.7
Earnings Per Share - Diluted	8.79	8.96	8.7

Naga Limited Cash Flow Statement for the last three years (In Rs. Crore)

Particulars	31st March 2022	31st March 2021	31st March 2020
Cash Flow Summary
Cash and Cash Equivalents at Beginning of the year	4.64	18.19	3.43
Net Cash from Operating Activities	68.76	101.82	39.61
Net Profit before Tax & Extraordinary Items	16.83	15.94	8.25
Depreciation	36.97	35.62	33.06
Interest (Net)	29.24	32.31	32.26
P/L on Sales of Assets	0	-0.06	0
P/L on Sales of Invest	-1.52	0	0
Prov. & W/O (Net)	1.65	0.85	1.29
P/L in Forex	-0.19	0	0
Others	0.93	0	0
Total Adjustments (PBT & Extraordinary Items)	67.08	68.72	66.61
Op. Profit before Working Capital Changes	83.91	84.66	74.86
Trade & other receivables	-39.99	4.95	-7.42
Inventories	23.9	-30.22	-84.5
Trade Payables	-0.02	22.12	63.92
Loans & Advances	0	0	-0.16
Others	3.17	24.91	-4.43
Total (OP before Working Capital Changes)	-12.94	21.76	-32.59
Cash Generated from/(used in) Operations	70.97	106.42	42.27
Direct Taxes Paid	-2.21	-4.6	-2.66
Total-others	-2.21	-4.6	-2.66
Cash Flow before Extraordinary Items	68.76	101.82	39.61
Net Cash Used in Investing Activities	-63.13	-51.61	-100.77
Purchased of Fixed Assets	-66.3	-49.56	-101.97
Sale of Fixed Assets	0.43	0.05	0
Purchase of Investments	-1.7	0	-0.43
Interest Received	0.75	0.51	1.37
Others	3.69	-2.61	0.26
Net Cash Used in Financing Activities	-6.59	-63.76	75.92
Proceed from 0ther Long Term Borrowings	0	10.86	60.83
Proceed from Bank Borrowings	0	0.17	0
Proceed from Short Term Borrowings	35.97	0	51.47
Of the Long-Term Borrowings	-8.05	0	0
Of the short-term Borrowings	0	-40.55	0
Dividend Paid	-1.42	-1.42	-2.75
Interest Paid	-33.09	-32.82	-33.63
Net Cash Used in Financing Activities	-6.59	-63.76	75.92
Net Inc/(Dec) in Cash and Cash Equivalent	-0.96	-13.55	14.76
Cash and Cash Equivalents at End of the year	3.68	4.64	18.19

Summary of Cash Flow Statement for Naga Limited:

1. Cash Flow from Operating Activities:

Naga Limited generated positive cash flows from operating activities in all three years. The company 's ability to generate cash from its core business operations improved over the years. In 2022, the net cash from operating activities was Rs. 68.76 Crore, compared to Rs. 101.82 Crore in 2021 and Rs. 39.61 Crore in 2020.

2. Cash Flow from Investing Activities:

The company has shown a net cash outflow from investing activities in all three years, indicating investments in fixed assets and other investments. In 2022, the net cash used in investing activities was Rs. -63.13 Crore, compared to Rs. -51.61 Crore in 2021 and Rs. -100.77 Crore in 2020.

3. Cash Flow from Financing Activities:

Naga Limited had net cash outflow from financing activities in all three years, mainly due to dividend payments and interest expenses, as well as borrowings for financing its operations. In 2022, the net cash used in financing activities was Rs. -6.59 Crore, compared to Rs. -63.76 Crore in 2021 and Rs. 75.92 Crore in 2020.

4. Net Increase/ (Decrease) in Cash and Cash Equivalents:

The net increase/ (decrease) in cash and cash equivalents represents the change in the company 's cash position during the year. In 2022, there was a slight decrease of Rs. -0.96 Crore, compared to a decrease of Rs. -13.55 Crore in 2021 and an increase of Rs. 14.76 Crore in 2020.

5. Cash and Cash Equivalents at the End of the Year:

Naga Limited had Rs. 3.68 Crore as cash and cash equivalents at the end of the year in 2022, compared to Rs. 4.64 Crore in 2021 and Rs. 18.19 Crore in 2020.

Funds Flow Statement of Naga Limited (In Rs. Crore)

Particulars	Mar-22	Mar-21	Mar-20
Sources of funds
Cash profit	48.73	48.38	45.46
Increase in other net worth	0.24	0.41	0
Increase in loan funds	28.45	0	120.89
Decrease in working capital	0	14.54	0
Total Inflow	77.42	63.33	166.35
Application of funds
Decrease in net worth	0	0	0.95
Decrease in loan funds	0	16.96	0
Increase in gross block	69.9	44.68	98.77
Increase in investments	0.75	0	1.21
Increase in working capital	5.34	0	63.14
Dividend	1.43	1.43	2.28
Total Outflow	77.42	63.33	166.35

Naga Limited Key Financial Ratios

Particulars	2022	2021	2020
Key Ratios
Debt-Equity Ratio	2.06	2.18	1.96
Long-Term Debt-Equity Ratio	1.23	1.32	1.15
Current Ratio	1.05	1.11	1.13
Turnover Ratios
Fixed Assets Turnover Ratio	3.84	3.79	3.05
Inventory Turnover Ratio	9.79	8.7	8.66
Debtors Turnover Ratio	24.73	28.14	18.79
Total Asset Turnover Ratio	3.67	3.32	2.57
Interest Cover Ratio	1.55	1.48	1.24
PBIDTM (%)	4.89	5.63	7.6
PBITM (%)	2.75	3.27	4.3
PBDTM (%)	3.12	3.42	4.12
CPM (%)	2.87	3.21	4.53
APATM (%)	0.73	0.85	1.24
ROCE (%)	10.09	10.86	11.04
RONW (%)	8.2	9.04	9.48
Payout (%)	11.42	11.21	18.39

Summary of Key Financial Ratios of Naga Limited:

1. Debt-Equity Ratio:

The debt-equity ratio measures the proportion of debt and equity used to finance the company 's assets. Naga Limited has shown a decreasing trend in the debt-equity ratio over the three years. In 2022, the ratio is 2.06, down from 2.18 in 2021 and 1.96 in 2020. This indicates a reduction in the company 's reliance on debt to finance its operations.

2. Long-Term Debt-Equity Ratio:

This ratio focuses on long-term debt in relation to equity. Naga Limited also shows a declining trend in the long-term debt-equity ratio, indicating a decrease in long-term debt compared to equity. In 2022, the ratio is 1.23, down from 1.32 in 2021 and 1.15 in 2020.

3. Current Ratio:

The current ratio measures the company 's ability to meet its short-term obligations. Naga Limited has a stable current ratio over the three years, indicating reasonable liquidity. In 2022, the ratio is 1.05, similar to 1.11 in 2021 and 1.13 in 2020.

4. Turnover Ratios:

- Fixed Assets Turnover Ratio: The fixed assets turnover ratio indicates how efficiently the company generates revenue from its fixed assets. Naga Limited has a consistent fixed assets turnover ratio over the three years, indicating efficient utilization of its fixed asset base. In 2022, the ratio is 3.84, similar to 3.79 in 2021 and higher than 3.05 in 2020.

- Inventory Turnover Ratio: The inventory turnover ratio reflects how efficiently the company manages its inventory. Naga Limited has a stable inventory turnover ratio over the three years, indicating effective inventory management. In 2022, the ratio is 9.79, similar to 8.7 in 2021 and 8.66 in 2020.

- Debtors Turnover Ratio: The debtors turnover ratio reflects the efficiency of the company in collecting cash from debtors. Naga Limited has shown a declining trend in this ratio, which may indicate changes in its credit management or collection efficiency. In 2022, the ratio is 24.73, down from 28.14 in 2021 and higher than 18.79 in 2020.

- Total Asset Turnover Ratio: The total asset turnover ratio measures the company 's ability to generate revenue from its total assets. Naga Limited has a consistent total asset turnover ratio over the three years, indicating efficient utilization of its total asset base. In 2022, the ratio is 3.67, similar to 3.32 in 2021 and higher than 2.57 in 2020.

5. Interest Cover Ratio:

The interest cover ratio evaluates the company 's ability to cover its interest expenses with its operating profit. Naga Limited has a stable interest cover ratio over the three years, indicating adequate coverage of interest expenses. In 2022, the ratio is 1.55, similar to 1.48 in 2021 and 1.24 in 2020.

6. Profitability Ratios:

The profitability ratios for Naga Limited indicate positive values over the three years.

- PBIDTM (%): The PBIDTM (Profit Before Interest, Depreciation, and Tax Margin) shows positive values, indicating that the company is making profits before considering interest, depreciation, and tax.

- PBITM (%): The PBITM (Profit Before Interest and Tax Margin) also shows positive values over the three years, suggesting profitability before considering interest and tax.

- PBDTM (%): The PBDTM (Profit Before Depreciation and Tax Margin) shows positive values, indicating profitability before considering depreciation and tax.

7. ROCE (%) and RONW (%):

Both the Return on Capital Employed (ROCE) and the Return on Net Worth (RONW) show positive values over the three years, indicating that the company is generating positive returns on its capital and shareholders ' equity.

8. Payout (%):

The payout ratio reflects the portion of earnings distributed to shareholders as dividends. Naga Limited has a consistent payout ratio over the three years, indicating the proportion of profits distributed as dividends. In 2022, the ratio is 11.42, similar to 11.21 in 2021 and lower than 18.39 in 2020.

Naga Limited Dividend History

Particulars	2022	2021	2020	2019
Dividend Per Share	0	0	0	0

Naga Limited Recent Financial Performance

Revenue from Operations increased by 14.61% from Rs. 1506.63 Crore in FY 2021 to Rs. 1726.80 Crore in FY 2022.
Total borrowings of the company increased from Rs. 301.32 Crore as of 31st March 2021 to Rs. 329.29 Crore as of 31st March 2022.
The Finance cost of the company decreased by 8.62% from Rs. 32.82 Crore to Rs. 29.99 Crore.
Profit after Tax decreased by 1.88% from Rs. 12.76 Crore in FY 2021 to Rs. 12.52 Crore in FY 2022.
For FY 2022, the company’s EPS was Rs. 8.79.
The Current Ratio of the company as of 31st March 2022 is 1.05.
The Debt to Equity Ratio of the company as of 31st March 2022 was 2.06.
The Book value per equity share of the company as of 31st March 2022 is Rs. 111.17.