TRIDENT 2018-19 Annual Report Analysis

Tue, 3 Sep

TRIDENT 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.

TRIDENT Income Statement Analysis

• Operating income during the year rose 15.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.8% in FY19 as against 18.7% in FY18.
• Depreciation charges decreased by 9.9% and finance costs increased by 0.2% YoY, respectively.
• Other income declined by 30.1% YoY.
• Net profit for the year grew by 39.7% YoY.
• Net profit margins during the year grew from 5.8% in FY18 to 7.0% in FY19.

TRIDENT Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	45,594	52,486	15.1%
Other income	Rs m	621	434	-30.1%
Total Revenues	Rs m	46,215	52,920	14.5%
Gross profit	Rs m	8,513	9,890	16.2%
Depreciation	Rs m	4,041	3,640	-9.9%
Interest	Rs m	1,182	1,185	0.2%
Profit before tax	Rs m	3,911	5,499	40.6%
Tax	Rs m	1,256	1,784	42.1%
Profit after tax	Rs m	2,662	3,718	39.7%
Gross profit margin	%	18.7	18.8
Effective tax rate	%	32.1	32.4
Net profit margin	%	5.8	7.0

TRIDENT Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 18 billion as compared to Rs 17 billion in FY18, thereby witnessing an increase of 8.0%.
• Long-term debt down at Rs 10 billion as compared to Rs 14 billion during FY18, a fall of 32.4%.
• Current assets rose 11% and stood at Rs 20 billion, while fixed assets fell 9% and stood at Rs 38 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 62 billion as against Rs 62 billion during FY18, thereby witnessing a fall of 0%.

TRIDENT Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	27,263	29,730	9.1
Current Liabilities	Rs m	16,861	18,216	8.0
Long-term Debt	Rs m	14,108	9,536	-32.4
Total Liabilities	Rs m	61,632	61,561	-0.1
Current assets	Rs m	18,305	20,369	11.3
Fixed Assets	Rs m	42,465	38,483	-9.4
Total Assets	Rs m	61,632	61,561	-0.1

TRIDENT Cash Flow Statement Analysis

• TRIDENT's cash flow from operating activities (CFO) during FY19 stood at Rs 7 billion, an improvement of 37.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -440 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -380 million from the Rs 203 million net cash flows seen during FY18.

TRIDENT 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	4,763	6,557	37.7%
Cash Flow from Investing Activities	Rs m	-1,879	-440	-
Cash Flow from Financing Activities	Rs m	-2,681	-6,497	-
Net Cash Flow	Rs m	203	-380	-

Current Valuations for TRIDENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.5, an improvement from the EPS of Rs 5.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 55.8, stands at 6.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 3.9 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	91.6	105.4
TTM Earnings per share	Rs	5.3	7.5
Diluted earnings per share	Rs	5.2	7.3
Price to Cash Flow	x	4.1	3.9
TTM P/E ratio	x	6.4	6.5
Price / Book Value ratio	x	1.5	1.1
Market Cap	Rs m	27,779	28,374
Dividends per share (Unadj.)	Rs	1.5	3.0

Ratio Analysis for TRIDENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x 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 5.6x during FY19, from 4.3x 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 12.5% during FY19, from 9.8% 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 17.0% during FY19, from 12.3% 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 8.0% during FY19, from 6.2% 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	1.1
Debtors’ Days	Days	37	46
Interest coverage	x	4.3	5.6
Debt to equity ratio	x	0.5	0.3
Return on assets	%	6.2	8.0
Return on equity	%	9.8	12.5
Return on capital employed	%	12.3	17.0

To see how TRIDENT has performed over the last 5 years, please visit here.

TRIDENT Share Price Performance

Over the last one year, TRIDENT share price has moved down from Rs 67.7 to Rs 55.8, registering a loss of Rs 11.9 or around 17.5%.

Overall, the S&P BSE SENSEX is down 4.5% over the year.

(To know more, check out historical annual results for TRIDENT and quarterly results for TRIDENT)