Nicco Corporation Annual Reports, Balance Sheet and Financials

Nicco Corporation Limited Balance Sheet (In Rs Lakhs)

Nicco Corporation Limited Profit & Loss Statement (In Rs Lakhs)

Nicco Corporation Limited Consolidated Cash Flow Statement (In Rs Lakhs)

Let 's break down the Cash Flow Statement for the years 2023 and 2022:

1. Operating Activities:

   - Operating cash flow represents the cash generated or used in the core business operations of the company. In 2023, the net cash generated from operating activities was Rs 2,657.65 lakhs, a significant increase from Rs 640.5 lakhs in 2022.

   - The operating profit before working capital changes in 2023 was Rs 3,017.95 lakhs, significantly higher than the previous year 's Rs 632.22 lakhs. This increase indicates improved operational performance.

   - Various adjustments were made to calculate operating cash flow, including depreciation, interest income, finance costs, provisions for doubtful debts, and other adjustments related to asset de-recognition, foreign exchange, fair value gains, etc.

   - Changes in working capital also affected operating cash flow. In 2023, there was a decrease in inventories and an increase in trade and other payables, partially offset by a decrease in trade and other receivables.

2. Investing Activities:

   - Investing activities involve cash flows related to the acquisition and disposal of long-term assets such as property, plant, equipment, investments, and term deposits.

   - In 2023, the company spent Rs 1,863.42 lakhs on investing activities, compared to Rs 481.13 lakhs in 2022, indicating increased investment.

   - Major cash outflows were for acquiring property, plant, and equipment, and investments in term deposits. Cash inflows included proceeds from the disposal of property, plant, equipment, and interest received.

   - The company also invested in and divested from mutual funds, with net cash flows reflecting the overall impact of these transactions.

3. Financing Activities:

   - Financing activities involve cash flows related to raising and repaying capital, including borrowing, issuing equity, and paying dividends.

   - In 2023, the company used Rs 585.51 lakhs in financing activities, primarily for repaying long-term borrowings and paying interim dividends. This is a significant increase from Rs 33.5 lakhs used in 2022.

   - Other cash outflows included payment of finance costs and lease liabilities, reflecting the company 's financial obligations.

   - The net increase in cash and cash equivalents is calculated by summing the net cash flows from operating, investing, and financing activities. In 2023, the company ended with Rs 624.8 lakhs in cash and cash equivalents, compared to Rs 416.08 lakhs at the beginning of the year.

Financial Ratios

Summary of Financial Ratios for the years 2023 and 2022:

 Liquidity Ratios:

1. Current Ratio:

2023: 2.27

2022: 2.66

Explanation: The current ratio measures the company 's ability to cover its short-term liabilities with its short-term assets. A current ratio above 1 indicates the company 's ability to meet its short-term obligations. In this case, the current ratio has decreased slightly from 2.66 in 2022 to 2.27 in 2023.

 Activity Ratios:

2. Debtors Turnover Ratio:

2023: 2.67

2022: 2.19

Explanation: The debtors turnover ratio indicates how many times a company 's receivables are collected during a period. An increase in this ratio suggests improved efficiency in collecting receivables. In this case, the ratio has increased from 2.19 in 2022 to 2.67 in 2023, indicating better management of receivables.

3. Inventory Turnover Ratio:

2023: 2.02

2022: 0.68

Explanation: The inventory turnover ratio measures how efficiently a company manages its inventory. A higher ratio indicates better inventory management. In this case, there is a significant improvement in inventory turnover from 0.68 in 2022 to 2.02 in 2023.

 Profitability Ratios:

4. Operating Profit Margin:

2023: 0.38

2022: 0.17

Explanation: Operating profit margin represents the percentage of profit generated from core operations. An increase in this ratio indicates improved operational efficiency. In this case, the operating profit margin has increased from 0.17 in 2022 to 0.38 in 2023.

5. Net Profit Margin:

2023: 0.28

2022: 0.12

Explanation: Net profit margin measures the percentage of profit a company retains from its total revenue. An increase in this ratio suggests improved overall profitability. In this case, the net profit margin has increased from 0.12 in 2022 to 0.28 in 2023.

6. Return on Net Worth:

2023: 0.4

2022: 0.1

Explanation: Return on Net Worth (RoNW) measures the profitability of shareholder equity. An increase in this ratio indicates improved returns on equity. In this case, there is a substantial improvement in RoNW from 0.1 in 2022 to 0.4 in 2023.

 Financial Leverage Ratios:

7. Debt Equity Ratio:

2023: -

2022: 0.06

Explanation: The debt equity ratio measures the proportion of debt and equity used to finance the company 's assets. A negative value might be an anomaly in data reporting or calculations. Generally, a lower debt equity ratio indicates lower financial risk. In this case, there is no reported value for 2023, and a low positive value of 0.06 in 2022 suggests a relatively low level of debt compared to equity.

 Coverage Ratios:

8. Interest Coverage Ratio:

2023: 98.9

2022: 16.79

Explanation: The interest coverage ratio measures the company 's ability to cover its interest expenses with its operating profit. A higher ratio indicates better coverage. In this case, there is a significant improvement in the interest coverage ratio from 16.79 in 2022 to 98.9 in 2023, indicating a better ability to meet interest obligations.

Dividend History (NA)