Share the post "NGL Fine-Chem announced Financial Results Q1 2024"
Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 27.75 % in the past year, decrease in net sales/revenue by -9.03 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 77.15 %. Marginal increase in other income during this quarter, up by 59.92%.
- Profit over the Year and quarter: Significant improvement in profitability for NGL Fine-Chem Limited. Notable increase of 8.37 % in net profit Year to Year, NGL Fine-Chem Limited’s profitability dropped by -25.2 % Quarter to Quarter.
- EPS over the Year and quarter: EPS increased by 8.35 % Year to Year. EPS decreased by -25.21 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 71.042 Cr | Rs. 99.761 Cr | Rs. 90.754 Cr | -9.03 % | + 27.75 % |
| Expenses | Rs. 61.18 Cr | Rs. 83.94 Cr | Rs. 81.41 Cr | -3.01 % | + 33.07 % |
| Operating Profit | Rs. 9.86 Cr | Rs. 15.82 Cr | Rs. 9.34 Cr | -40.96 % | -5.27 % |
| OPM % | 13.88 % | 15.86 % | 10.29 % | -5.57 % | -3.59 % |
| Other Income | Rs. 3.322 Cr | Rs. 3.68 Cr | Rs. 5.885 Cr | + 59.92 % | + 77.15 % |
| Interest | Rs. 0.24 Cr | Rs. 0.49 Cr | Rs. 0.44 Cr | -10.2 % | + 83.33 % |
| Depreciation | Rs. 2.86 Cr | Rs. 2.92 Cr | Rs. 3.01 Cr | + 3.08 % | + 5.24 % |
| Profit before tax | Rs. 10.08 Cr | Rs. 16.09 Cr | Rs. 11.78 Cr | -26.79 % | + 16.87 % |
| Tax % | 15.64 % | 23.42 % | 21.79 % | -1.63 % | + 6.15 % |
| Net Profit | Rs. 8.51 Cr | Rs. 12.33 Cr | Rs. 9.22 Cr | -25.22 % | + 8.34 % |
| EPS in Rs | Rs. 13.77 | Rs. 19.95 | Rs. 14.92 | -25.21 % | + 8.35 % |
Today, we’re looking at NGL Fine-Chem Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 27.75 %. However, it did see a marginal slip of -9.03 % from the previous quarter. Expenses decreased slightly by -3.01 % quarter-on-quarter, aligning with the annual rise of 33.07 %. Operating profit, while down -5.27 % compared to last year, faced a quarter-on-quarter dip of -40.96 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -3.59 %, but a shrinkage of -5.57 % sequentially. Other income rose by 59.92 % compared to the last quarter, despite an annual growth of 77.15 %. Interest expenses dropped significantly by -10.2 % from the previous quarter, yet the year-over-year increase remains at a moderate 83.33 %. Depreciation costs climbed by 3.08 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 5.24 %. Profit before tax grew annually by 16.87 % but saw a reduction from the preceding quarter by -26.79 %.
Tax expenses as a percentage of profits increased slightly by 6.15 % compared to last year, with a more notable quarter-on-quarter decrease of -1.63 %. Net profit rose by 8.34 % year-on-year but witnessed a -25.22 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 8.35 % but a quarterly fall of -25.21 %. In summary, NGL Fine-Chem Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 71.042 Cr | Rs. 99.761 Cr | Rs. 90.754 Cr | -9.03 % | + 27.75 % |
| Expenses | Rs. 61.18 Cr | Rs. 83.94 Cr | Rs. 81.41 Cr | -3.01 % | + 33.07 % |
| Operating Profit | Rs. 9.86 Cr | Rs. 15.82 Cr | Rs. 9.34 Cr | -40.96 % | -5.27 % |
| Net Profit | Rs. 8.51 Cr | Rs. 12.33 Cr | Rs. 9.22 Cr | -25.22 % | + 8.34 % |
| EPS in Rs | Rs. 13.77 | Rs. 19.95 | Rs. 14.92 | -25.21 % | + 8.35 % |
In reviewing NGL Fine-Chem Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 27.75 % year-on-year growth, although there was a slight dip of -9.03 % from the previous quarter. Expenses rose by 33.07 % compared to the previous year, with a decrease of -3.01 % quarter-on-quarter. Operating Profit dropped by -5.27 % annually, and saw a -40.96 % decrease from the last quarter.
Net Profit showed yearly increase of 8.34 %, and experienced a -25.22 % decrease from the previous quarter. Earnings Per Share (EPS) rose by 8.35 % annually, however dipped by -25.21 % compared to the last quarter. In essence, while NGL Fine-Chem Limited exhibits strong annual growth indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
-11
3-Year Profit
14
5-Year Profit
23
10-Year Profit
1,947
Current Price
1,203
Market Cap
Upon examining the financial data for BSE code 524774, it becomes clear that the company achieved a notable five-year profit of 14 percents, which impressively increased to -11 percents in the three-year window. This upward trajectory, however, has been overshadowed by the latest trailing twelve-month (TTM) figures, which indicate a concerning loss of 13 percents. This financial loss is further compounded by the fact that the company has not recorded any sales across any of the timeframes under consideration. Such an unusual situation might suggest that the company operates under an unconventional business model, which could potentially carry higher risks. In terms of stock performance, the company’s stock price has seen a decline, falling from 32 percents over the five-year period to just 9 percents in the last year. The ten-year average stock price, which sits at 43 percents, highlights long-term volatility, casting doubt on the company's ability to sustain its market position over time. This warrants further investigation into the factors driving these fluctuations.
The company has a market capitalization of ₹1,203 crore and is currently trading at ₹1,947 per share. Historically, the stock has fluctuated within a range of ₹2,824 / 1,711, reflecting both the opportunities and risks that investors perceive in the company. The P/E ratio, at 28.6, is relatively high, suggesting that the market has priced in substantial future growth or is willing to pay a premium for the company’s current earnings. The book value per share stands at ₹425, which reflects the net asset value of the company divided by the number of outstanding shares. The dividend yield is 0.09%, providing shareholders with a consistent return on their investment. ROCE is 20.4%, indicating how well the company is using its capital to generate profits, while ROE at 17.0% highlights the returns generated from shareholders' equity. The debt-to-equity ratio is 0.13, signaling low financial leverage, which is typically seen as a positive indicator of financial health. However, the company’s negative net cash flow of ₹-7.43 crore might raise concerns about its cash generation capabilities or capital expenditures. With a Piotroski score of 7.00, the company's financial stability is evaluated on several factors. Finally, the Graham Number, at ₹807, provides an estimate of the stock’s intrinsic value, while the Price-to-Book (P/B) ratio of 4.58 highlights that the stock is trading at a premium to its book value, potentially reflecting positive market sentiment or overvaluation risks.
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