GE POWER INDIA 2018-19 Annual Report Analysis

Sun, 31 Mar

GE POWER INDIA has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

GE POWER INDIA Income Statement Analysis

• Operating income during the year rose 42.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1142.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.2% in FY19 as against 0.7% in FY18.
• Depreciation charges decreased by 38.1% and finance costs increased by 66.7% YoY, respectively.
• Other income declined by 1.8% YoY.
• Net profit for the year grew by 183.4% YoY.
• Net profit margins during the year grew from 2.0% in FY18 to 4.0% in FY19.

GE POWER INDIA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	13,326	19,028	42.8%
Other income	Rs m	1,348	1,324	-1.8%
Total Revenues	Rs m	14,674	20,352	38.7%
Gross profit	Rs m	-95	989	-1,142.5%
Depreciation	Rs m	508	314	-38.1%
Interest	Rs m	322	537	66.7%
Profit before tax	Rs m	423	1,462	245.5%
Tax	Rs m	157	708	350.9%
Profit after tax	Rs m	266	754	183.4%
Gross profit margin	%	-0.7	5.2
Effective tax rate	%	37.1	48.4
Net profit margin	%	2.0	4.0

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GE POWER INDIA Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 30 billion as compared to Rs 33 billion in FY18, thereby witnessing an decrease of -9.2%.
• Current assets fell 5% and stood at Rs 35 billion, while fixed assets fell 14% and stood at Rs 6 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 42 billion as against Rs 45 billion during FY18, thereby witnessing a fall of 6%.

GE POWER INDIA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	8,283	8,819	6.5
Current Liabilities	Rs m	33,380	30,325	-9.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	44,578	41,745	-6.4
Current assets	Rs m	37,072	35,293	-4.8
Fixed Assets	Rs m	7,506	6,452	-14.0
Total Assets	Rs m	44,578	41,745	-6.4

GE POWER INDIA Cash Flow Statement Analysis

• GE POWER INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -394 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -575 million from the Rs -7 billion net cash flows seen during FY18.

GE POWER INDIA Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	581	-2,410	-
Cash Flow from Investing Activities	Rs m	-7,099	2,229	-
Cash Flow from Financing Activities	Rs m	-277	-394	-
Net Cash Flow	Rs m	-6,795	-575	-

Current Valuations for GE POWER INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.2, an improvement from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 810.8, stands at 71.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 51.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	198.2	283.0
TTM Earnings per share	Rs	4.0	11.2
Diluted earnings per share	Rs	4.0	11.2
Price to Cash Flow	x	80.6	51.6
TTM P/E ratio	x	136.7	71.7
Price / Book Value ratio	x	6.6	6.3
Market Cap	Rs m	54,604	55,125
Dividends per share (Unadj.)	Rs	3.0	6.0

Ratio Analysis for GE POWER INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY19, from 1.1x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 3.7x during FY19, from 2.3x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 8.5% during FY19, from 3.2% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 22.7% during FY19, from 9.0% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 3.1% during FY19, from 1.3% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	1.1	1.2
Debtors’ Days	Days	260	188
Interest coverage	x	2.3	3.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.3	3.1
Return on equity	%	3.2	8.5
Return on capital employed	%	9.0	22.7

To see how GE POWER INDIA has performed over the last 5 years, please visit here.

GE POWER INDIA Share Price Performance

Over the last one year, GE POWER INDIA share price has moved down from Rs 928.0 to Rs 810.8, registering a loss of Rs 117.2 or around 12.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for GE POWER INDIA and quarterly results for GE POWER INDIA)

Read: Latest Annual Report Analysis of GE POWER INDIA