ADANI ENTERPR. 2018-19 Annual Report Analysis

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ADANI ENTERPR. 2018-19 Annual Report Analysis
Thu, 18 Jul

ADANI ENTERPR. 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.

ADANI ENTERPR. Income Statement Analysis

  • Operating income during the year rose 12.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 3.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.9% in FY19 as against 5.7% in FY18.
  • Depreciation charges decreased by 41.3% and finance costs increased by 30.0% YoY, respectively.
  • Other income declined by 3.4% YoY.
  • Net profit for the year declined by 24.1% YoY.
  • Net profit margins during the year declined from 1.5% in FY18 to 1.0% in FY19.

ADANI ENTERPR. Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 359,239 403,787 12.4%
Other income Rs m 5,922 5,720 -3.4%
Total Revenues Rs m 365,162 409,506 12.1%
Gross profit Rs m 20,342 19,688 -3.2%
Depreciation Rs m 6,639 3,898 -41.3%
Interest Rs m 12,502 16,251 30.0%
Profit before tax Rs m 7,124 5,259 -26.2%
Tax Rs m 1,121 1,445 28.9%
Profit after tax Rs m 5,466 4,151 -24.1%
Gross profit margin % 5.7 4.9
Effective tax rate % 15.7 27.5
Net profit margin % 1.5 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ADANI ENTERPR. Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 224 billion as compared to Rs 238 billion in FY18, thereby witnessing an decrease of -6.2%.
  • Long-term debt down at Rs 30 billion as compared to Rs 43 billion during FY18, a fall of 30.0%.
  • Current assets fell 35% and stood at Rs 230 billion, while fixed assets fell 8% and stood at Rs 148 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 424 billion as against Rs 565 billion during FY18, thereby witnessing a fall of 25%.

ADANI ENTERPR. Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 150,892 147,559 -2.2
 
Current Liabilities Rs m 238,478 223,807 -6.2
Long-term Debt Rs m 42,730 29,922 -30.0
Total Liabilities Rs m 564,947 424,076 -24.9
 
Current assets Rs m 354,564 229,994 -35.1
Fixed Assets Rs m 160,811 147,850 -8.1
Total Assets Rs m 564,947 424,076 -24.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ADANI ENTERPR. Cash Flow Statement Analysis

  • ADANI ENTERPR.'s cash flow from operating activities (CFO) during FY19 stood at Rs 33 billion, an improvement of 13.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 18 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -62 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -4 billion from the Rs 4 billion net cash flows seen during FY18.

ADANI ENTERPR. 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 29,424 33,267 13.1%
Cash Flow from Investing Activities Rs m -77,065 18,091 -
Cash Flow from Financing Activities Rs m 51,196 -61,584 -
Net Cash Flow Rs m 4,131 -4,376 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ADANI ENTERPR.

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.8, an decline from the EPS of Rs 5.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 136.4, stands at 76.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 34.5 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 326.6 367.1
TTM Earnings per share Rs 5.0 3.8
Diluted earnings per share Rs 3.5 2.7
Price to Cash Flow x 15.1 34.5
TTM P/E ratio x 54.0 76.2
Price / Book Value ratio x 1.2 1.3
Market Cap Rs m 150,014 211,655
Dividends per share (Unadj.) Rs 0.4 0.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ADANI ENTERPR.

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY19, from 1.5x 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 deteriorated and stood at 1.3x during FY19, from 1.6x 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 declined and down at 2.8% during FY19, from 3.6% 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 12.3% during FY19, from 9.9% 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 4.8% during FY19, from 3.2% 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 1.5 1.0
Debtors’ Days Days 123 128
Interest coverage x 1.6 1.3
Debt to equity ratio x 0.3 0.2
Return on assets % 3.2 4.8
Return on equity % 3.6 2.8
Return on capital employed % 9.9 12.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

ADANI ENTERPR. Share Price Performance

Over the last one year, ADANI ENTERPR. share price has moved up from Rs 100.6 to Rs 136.4, registering a gain of Rs 35.8 or around 35.6%.

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for ADANI ENTERPR. and quarterly results for ADANI ENTERPR.)

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