Revenue and Profitability Trends
Navkar Corporat.’s net sales increased from ₹347.26 crores in the fiscal year ending March 2016 to ₹370.91 crores in March 2017, reflecting a moderate growth in top-line performance. Despite this increase, the operating profit margin (excluding other income) slightly declined from 38.5% to 37.1%, indicating a marginal compression in operational efficiency. The gross profit margin also saw a dip from 35.3% to 32.2% over the same period.
Operating profit (PBDIT) excluding other income rose modestly from ₹133.68 crores to ₹137.44 crores, while total operating profit including other income decreased from ₹156.87 crores to ₹150.57 crores, largely due to a reduction in other income from ₹23.18 crores to ₹13.13 crores. Interest expenses decreased from ₹34.39 crores to ₹31.28 crores, contributing to a slight improvement in gross profit before depreciation and tax.
Profit before tax declined from ₹103.15 crores to ₹99.21 crores, with profit after tax remaining almost flat at around ₹85.6 crores for both years. The company maintained a consistent earnings per share (EPS) of ₹6.0, though diluted EPS showed a slight decrease from ₹6.65 to ₹6.0. The PAT margin narrowed from 24.6% to 23.1%, signalling a minor contraction in net profitability.
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Balance Sheet and Asset Growth
Over the years, Navkar Corporat. has significantly strengthened its balance sheet. Shareholder’s funds rose from ₹208.69 crores in March 2012 to ₹1,448.91 crores by March 2017, driven by a substantial increase in reserves from ₹195.26 crores to ₹1,306.30 crores. The equity capital also expanded from ₹13.44 crores to ₹142.61 crores, reflecting capital infusion and growth.
Total liabilities increased from ₹659.58 crores in 2012 to ₹2,089.01 crores in 2017, with long-term borrowings showing a gradual decline from ₹353.75 crores to ₹339.34 crores, indicating some deleveraging. Short-term borrowings rose moderately to ₹35.88 crores in 2017. The company’s gross block of assets expanded from ₹568.69 crores to ₹1,290.84 crores, with net block increasing to ₹1,193.85 crores, underscoring ongoing capital expenditure and asset accumulation.
Capital work in progress surged notably from ₹0.54 crores in 2012 to ₹516.09 crores in 2017, signalling active investment in future growth projects. Non-current assets grew steadily to ₹1,875.82 crores, supported by long-term loans and advances and non-current investments.
Liquidity and Cash Flow Analysis
Navkar Corporat.’s cash flow from operating activities showed variability, with ₹108.35 crores generated in 2017 compared to ₹224.35 crores in 2016. The cash flow after changes in working capital was ₹136.69 crores in 2017, down from ₹247.09 crores the previous year, reflecting fluctuations in working capital management.
Investing activities consistently resulted in cash outflows, with ₹47.22 crores spent in 2017, significantly lower than the ₹663.75 crores outflow in 2016, indicating a slowdown in capital expenditure or asset acquisitions. Financing activities saw a net outflow of ₹27.61 crores in 2017, contrasting with a substantial inflow in 2016, suggesting repayment or reduction of borrowings.
Closing cash and cash equivalents increased markedly to ₹38.39 crores in 2017 from ₹4.87 crores in 2016, enhancing liquidity buffers. However, net current assets turned negative at ₹-41.47 crores in 2017, compared to a positive ₹148.08 crores in 2016, which may warrant closer monitoring of short-term obligations.
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Overall Assessment
Navkar Corporat. has exhibited a stable financial performance with consistent profitability and a growing asset base over the past several years. While revenue and profit margins have experienced slight fluctuations, the company’s ability to maintain earnings and expand shareholder equity is notable. The increase in capital work in progress and net block assets suggests a focus on long-term growth, although the negative net current assets in the latest year highlight a potential area for liquidity management.
Investors should consider these factors alongside sector trends and peer performance to gauge Navkar Corporat.’s future prospects. The company’s steady cash flow generation and controlled debt levels provide a foundation for sustainable operations, but monitoring working capital and margin pressures will be essential for continued success.
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