ADANI ENTERPR. 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

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.)

Equitymaster requests your view! Post a comment on "ADANI ENTERPR. 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

ADANI ENTERPR. Announces Quarterly Results (1QFY20); Net Profit Up 15434.9% (Quarterly Result Update)

Aug 13, 2019 | Updated on Aug 13, 2019

For the quarter ended June 2019, ADANI ENTERPR. has posted a net profit of Rs 5 bn (up 15434.9% YoY). Sales on the other hand came in at Rs 106 bn (up 32.8% YoY). Read on for a complete analysis of ADANI ENTERPR.'s quarterly results.

ADANI ENTERPR. Announces Quarterly Results (4QFY19); Net Profit Up 3.2% (Quarterly Result Update)

Jun 3, 2019 | Updated on Jun 3, 2019

For the quarter ended March 2019, ADANI ENTERPR. has posted a net profit of Rs 2 bn (up 3.2% YoY). Sales on the other hand came in at Rs 132 bn (up 29.3% YoY). Read on for a complete analysis of ADANI ENTERPR.'s quarterly results.

MSTC IPO: Should You Bet on This State-Run E-Commerce Player? (IPO)

Mar 13, 2019

Should you subscribe to the IPO of MSPC Limited?

Hindustan Aeronautics IPO: Yet Another Play on India's Defence Sector (IPO)

Mar 14, 2018

Should you apply for the IPO of state-run military aircraft maker Hindustan Aeronautics?

Bharat Dynamics IPO: Worth Betting on Defence Manufacturing? (IPO)

Mar 12, 2018

Should you apply for the IPO of Bharat Dynamics, India's first state-owned missile manufacturer?

More Views on News

Most Popular

My 3 Best Small-cap Stocks to Get Rich in this Market Rebound(Profit Hunter)

Oct 14, 2019

This is once in a decade opportunity to make a killing from smallcap rebound.

Finally, Is the Share Price of Yes Bank Ready for a Rebound?(The 5 Minute Wrapup)

Oct 7, 2019

Here's what every individual investor must know about Yes Bank...

Two Stocks to Buy in the Great Indian Festival(Profit Hunter)

Oct 11, 2019

Discounts are not just limited to E-tailers. You can buy stocks at 50% off too. Here are two stocks to buy now.

The One Stock I Like in this Market(The 5 Minute Wrapup)

Oct 10, 2019

There are rare periods in markets when you get good quality stocks at attractive valuations. Is this one such period?

5 Smart Money Stocks to Profit from the Market Rebound(The 5 Minute Wrapup)

Oct 11, 2019

Now is the time to put money in these 5 stocks to take advantage of the recovery in the economy and the markets.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2020
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK ADANI ENTERPR.

  • Track your investment in ADANI ENTERPR. with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON ADANI ENTERPR.

ADANI ENTERPR. 5-YR ANALYSIS

COMPARE ADANI ENTERPR. WITH

MARKET STATS