Share the post "Nile ‘s Q2 Financial results: Revenue Grows by 0.39% YoY"
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 0.39 % in the past year, substantial increase in net sales/revenue by 2.56 %.
- 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 8 %. Marginal decrease of -28.95% in other income during this quarter.
- Profit over the Year and quarter: Significant improvement in profitability for Nile Ltd.. Notable increase of 2.38 % in net profit Year to Year, Nile Ltd.’s profitability increased by 3.23 % in this quarter.
- EPS over the Year and quarter: EPS increased by 2.39 % Year to Year. EPS increased by 3.26 % in previous quarter. Positive impact on shareholders.
Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
---|---|---|---|---|---|
Sales | Rs. 250.712 Cr | Rs. 245.405 Cr | Rs. 251.681 Cr | + 2.56 % | + 0.39 % |
Expenses | Rs. 238.67 Cr | Rs. 232.39 Cr | Rs. 239.05 Cr | + 2.87 % | + 0.16 % |
Operating Profit | Rs. 12.04 Cr | Rs. 13.02 Cr | Rs. 12.63 Cr | -3 % | + 4.9 % |
OPM % | 4.8 % | 5.31 % | 5.02 % | -0.29 % | + 0.22 % |
Other Income | Rs. 0.025 Cr | Rs. 0.038 Cr | Rs. 0.027 Cr | -28.95 % | + 8 % |
Interest | Rs. 0.36 Cr | Rs. 0.61 Cr | Rs. 0.36 Cr | -40.98 % | + 0 % |
Depreciation | Rs. 0.72 Cr | Rs. 0.95 Cr | Rs. 0.97 Cr | + 2.11 % | + 34.72 % |
Profit before tax | Rs. 10.99 Cr | Rs. 11.5 Cr | Rs. 11.33 Cr | -1.48 % | + 3.09 % |
Tax % | 25.58 % | 29.42 % | 26.09 % | -3.33 % | + 0.51 % |
Net Profit | Rs. 8.18 Cr | Rs. 8.11 Cr | Rs. 8.37 Cr | + 3.21 % | + 2.32 % |
EPS in Rs | Rs. 27.24 | Rs. 27.01 | Rs. 27.89 | + 3.26 % | + 2.39 % |
Today, we’re looking at Nile Ltd.’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a robust year-over-year sales growth of 0.39 %. However, it did see a marginal increase of 2.56 % from the previous quarter. Expenses ticked up slightly by 2.87 % quarter-on-quarter, aligning with the annual rise of 0.16 %. Operating profit, while up 4.9 % compared to last year, faced a quarter-on-quarter dip of -3 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 0.22 %, but a shrinkage of -0.29 % sequentially. Other income fell by -28.95 % compared to the last quarter, despite an annual growth of 8 %. Interest expenses dropped significantly by -40.98 % from the previous quarter, yet the year-over-year increase remains at a moderate 0 %. Depreciation costs climbed by 2.11 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 34.72 %. Profit before tax grew annually by 3.09 % but saw a reduction from the preceding quarter by -1.48 %.
Tax expenses as a percentage of profits increased slightly by 0.51 % compared to last year, with a more notable quarter-on-quarter decrease of -3.33 %. Net profit rose by 2.32 % year-on-year but experienced a 3.21 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 2.39 % but a quarterly rise of 3.26 %. In summary, Nile Ltd.’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. 250.712 Cr | Rs. 245.405 Cr | Rs. 251.681 Cr | + 2.56 % | + 0.39 % |
Expenses | Rs. 238.67 Cr | Rs. 232.39 Cr | Rs. 239.05 Cr | + 2.87 % | + 0.16 % |
Operating Profit | Rs. 12.04 Cr | Rs. 13.02 Cr | Rs. 12.63 Cr | -3 % | + 4.9 % |
Net Profit | Rs. 8.18 Cr | Rs. 8.11 Cr | Rs. 8.37 Cr | + 3.21 % | + 2.32 % |
EPS in Rs | Rs. 27.24 | Rs. 27.01 | Rs. 27.89 | + 3.26 % | + 2.39 % |
In reviewing Nile Ltd.’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 0.39 % year-on-year growth, however, there was a minor increase of 2.56 % from the previous quarter. Expenses rose by 0.16 % compared to the previous year, with a 2.87 % increase quarter-on-quarter. Operating Profit surged by 4.9 % annually, and saw a -3 % decrease from the last quarter.
Net Profit showed yearly increase of 2.32 %, and experienced a 3.21 % increase from the previous quarter. Earnings Per Share (EPS) rose by 2.39 % annually, however rose by 3.26 % compared to the last quarter. In essence, while Nile Ltd. exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
32
3-Year Profit
20
5-Year Profit
20
10-Year Profit
2,249
Current Price
675
Market Cap
Upon examining the financial data for BSE code 530129, it becomes clear that the company achieved a notable five-year profit of 20 percents, which impressively increased to 32 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 36 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 56 percents over the five-year period to just 156 percents in the last year. The ten-year average stock price, which sits at 21 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.
Currently valued at ₹675 crore, the company's stock price stands at ₹2,249. Over the years, it has seen significant fluctuations, with its price ranging from ₹2,798 / 841, a reflection of its sensitivity to market conditions and investor sentiment. The stock's Price-to-Earnings (P/E) ratio, currently at 19.6, suggests that it is highly valued in comparison to its earnings, possibly indicating strong future growth expectations or a high level of investor confidence. The book value per share is ₹821, which represents the net asset value of the company per share. The dividend yield of 0.18% provides some return to investors, though it may not be the primary attraction for those investing in the stock. The company's Return on Capital Employed (ROCE) is 18.9%, pointing to efficient use of its capital base to generate profits. The Return on Equity (ROE), at 14.5%, highlights the profitability for shareholders. The company's financial health is further underscored by its very low debt-to-equity ratio of 0.07, signaling conservative financial management. However, the net cash flow is negative at ₹0.26 crore, indicating possible liquidity concerns or heavy investment. The Piotroski score of 7.00 provides a snapshot of its financial stability, while the Graham Number, estimated at ₹1,455, offers an intrinsic value benchmark. With a Price-to-Book (P/B) ratio of 2.74, the stock seems to be trading at a premium relative to its book value, which could signal strong market expectations or overvaluation risks.