NCL INDUSTRIES LTD - Q3 FY 21 RESULTS ANALYSIS

 

NCL INDUSTRIES LTD

Q3 FY 21 RESULTS ANALYSIS

 

Management     

Kamlesh Gandhi   Chairman     

K Ravi                  Managing Director      

N G V S G Prasad        Executive Director & CFO  

CAPACITIES

2,700,000            Cement Capacity(Tons)

90,000                 Cement Boned Particle Board (Sq. Metres)

5                          Ready Mix Concrete Units

15.75                   Hydro Power Capacity (MW)

2,000                   Dealers/Distributors

Cement to Building Materials – a natural progression

 

The first step was setting up a Plant to manufacture cement bonded particle Boards to be used as partitions, roofs and panels. This was started in collaboration with Bison Werke of Germany, the world leaders in particle board technology.

In house research and development brought about several improvements and additional features in the product. Bison Panels now have several features that provided flexibility and adaptability to suit varying requirements.

 

Bison Panels progressed from market acceptability to popularity. To meet the growing demand of the product, the capacity also was increased from the initial 30,000 TPA. A new plant with similar capacity was set up in Paonta Saheb, Himachal Pradesh in 2007 to cater to the North Indian market. Yet another plant at Mattapalli was commissioned in 2018. Now the total Boards capacity stands at 90,000 TPA.

The Group added to its product portfolio other products like pre-painted steel profiles for windows and partitions, paints, putties and emulsions, UPVC windows and AAC Bricks. These are all manufactured by its sister concern, NCL BUILDTEK LTD, (Formerly known as NCL ALLTEK & SECCOLOR LTD).

The Company is now in the process of setting up a state of the art ready-made doors plant, which is drawing attention of leading builders and architects.

NCL also has an Energy Division consisting of two small hydro power plants viz. 7.50 MW project on right main canal of Srisailam dam and 8.25 MW on right high level canal of Tungabhadra dam. Both the Plants have Power Purchase Agreements with respective State DISCOMs. These two projects augment the company’s revenues.

 

 

CEMENT DIVISION

Suryapet Dist.Telangana State

Krishna District, A.P.

BOARDS DIVISION

Suryapet Dist. Telangana State

Sirmour District ,Himachal Pradesh

ENERGY DIVISION

Nandikotkur TQ, Kurnool District, AP

Tungabhadra Dam, Hospet, Karnakata

READY MIX CONCRETE DIVISION

1. Visakhapatnam, A.P.

2. Visakhapatnam

3. Patancheru (V) Telangana State.

4. Keesara (M), Medchal (Dt.)Telangana State.

5. Serilinagampalli,Ranga Reddy (Dist)

6. Maheswaram (Mandal), Ranga Reddy (District), Telangana.

7. Kasimkota (M), Near Paravadapalem Busstop, AP.

DOORS DIVISION : Malkapur (V) Choutuppal (M),

Yadadri-Bhuvanagiri (Dt.) Telangana State

 

ANNUAL REPORT 2019-20

Performance Review & State of Company’s Affairs

After  a  promising  start  during  the  1st  quarter  of  the year  2019-20,  the  Cement  Division  had  to  face  several challenges in the subsequent quarters.

Non availability of sand, cancellation / suspension of some of the orders by some  contractors  executing  major  orders  of  some  State Governments  were  factors which  impacted  the  demand and  dispatches  of  cement. 

On  the  positive  side,  there were better price realisation resulted in an improved profit compared to the previous year.

The Cement Division registered a Turnover of ` 1102.91 Crores which was marginally lower by 12% in comparison with the previous year.

The Boards Division recorded a lower Turnover by 6 % at ` 125.92 Crores during the year under review.

The generation of hydel power during the year was 36.80 million units, an increase of around 65 % compared to 22.36 million units in the previous year.

 The Ready Mix Concrete division improved its performance during the year under review.

The Readymade Doors division commenced its commercial operations on 23rd December 2019 during the year under review.

The full results of operations of the Division are expected to be reflected in the financial statements for the current Financial Year 2020-21.

Readymade Doors:

The plant for manufacture of Readymade Doors installed at Malkapur near Hyderabad commenced its commercial operations  23rd  December,  2019.  The  response  from builders and market to the new product introduced by your Company is encouraging.

Ready Mix Concrete Units (RMC)

During the current year, your company has commenced establishment of two more RMC units at Visakhapatnam and Hyderabad and erection of machinery is in advanced stage of completion

 

QUARTERLY RESULTS

NCL Industries (in Rs. Cr.)	Dec '20	Sep '20	Jun '20	Mar '20	Dec '19	YOY	QOQ
Net Sales	369.49	348.08	260.91	246.87	210.64	75.41	6.15
Power & Fuel	81.69	78.73	--	79.02	65.05	25.58	3.76
Other Income	1.43	1.5	0.45	2.28	-1.43	-200	-4.67
Interest	4.46	5.11	6.85	7.47	8.1	-44.94	-12.72
P B T	58.47	66.51	48.01	7.37	5.77	913.34	-12.09
Tax	16.88	23.62	16.06	-0.29	0.34	4864.71	-28.54
N P T	41.59	42.9	31.95	7.66	5.43	665.93	-3.05
Equity	45.23	45.23	45.23	45.23	45.23	0	0
Basic EPS	9.2	9.48	7.06	1.72	1.2	666.67	-2.95

 

MP  168

PE   4.565217391

52 WEEK  : L 53.2       H 176.7 

Volume  2,67,839

Face Value    10

Book Value    116.83

Price Performance   

1 Week  0.63%

1 Month  11.93%

3 Months       15.50%

YTD 13.03%

1 Year    96.29%

Yearly Results	Mar '20	Mar '19	Mar '18	Mar '17	Mar '16
Net Sales	937.87	979.88	880.4	765.52	660.77
Raw Materials	285.81	343.85	310.88	303.77	255.9
P B T	69.18	60.99	74.37	61.66	66.87
Tax	18.34	14.21	25.26	6.93	13.79
Net Profit	50.85	46.78	49.11	54.73	53.08
Equity	45.23	45.23	45.23	36.73	36.73
Reserves	483.21	454.43	415.97	189.93	160.08
Equity Dividend Rate (%)	25	25	25	25	20
Basic EPS	11.26	10.34	12.51	14.9	14.56

 

SEGMENT REVENUE
	Q3 FY21	Q2 FY 21	Q3 FY20
CEMENT DN	439.71	434.68	240.59
BOARDS DN	38.47	29.01	31.14
PREFAB DN
ENERGYDN	3.93	2.42	4.42
READYMIX CONCRETE	31.42	21.2	23.49
DOORS	4.05	2.73	0.07
INTER-SEGMENTAL	-51.53	-47.54	-34.04
NET SALES	369.49	348.08	210.64
PROFIT
CEMENT DN	57.95	22.23	5.78

 

PROMOTERS SHAREHOLDING

Promoters pledged 3.34% of shares in last quarter. Total pledge stands at 6.33% of promoter holdings

Promoters have increased holdings from 43.7% to 43.86% in Dec 2020 qtr.

Mutual Funds have decreased holdings from 6.07% to 2.78% in Dec 2020 qtr

Number of MF schemes remains unchanged at 3 in Dec 2020 qtr

Institutional Investors have decreased holdings from 6.47% to 2.84% in Dec 2020 qtr

 

STRENGTHS

Promoters increasing shareholding QoQ

Effectively using its capital to generate profit - RoCE improving in last 2 years

Growth in Quarterly Net Profit with increasing Profit Margin (YoY)

 

Increasing Revenue every Quarter for the past 4 Quarters

WEAKNESSES

MFs decreased their shareholding last quarter

Decline in Net Profit with falling Profit Margin (QoQ)

Declining Net Cash Flow : Companies not able to generate net cash

OPPORTUNITIES

Companies with current TTM PE Ratio less than 3 Year, 5 Year and 10 Year PE

Highest Recovery from 52 Week Low

Stock with Low PE (PE < = 10)

Insiders bought stocks

THREATS

Companies where promoters have increased their pledged stocks