ASIAN GRANITO 2019-20 Annual Report Analysis

Tue, 31 Mar

ASIAN GRANITO has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

ASIAN GRANITO Income Statement Analysis

• Operating income during the year rose 3.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.1% in FY20 as against 7.1% in FY19.
• Depreciation charges increased by 12.7% and finance costs increased by 8.5% YoY, respectively.
• Other income grew by 48.4% YoY.
• Net profit for the year grew by 132.2% YoY.
• Net profit margins during the year grew from 1.6% in FY19 to 3.6% in FY20.

ASIAN GRANITO Income Statement 2019-20

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Net Sales	Rs m	11,867	12,245	3.2%
Other income	Rs m	91	135	48.4%
Total Revenues	Rs m	11,958	12,380	3.5%
Gross profit	Rs m	837	1,119	33.8%
Depreciation	Rs m	273	308	12.7%
Interest	Rs m	369	400	8.5%
Profit before tax	Rs m	286	547	91.2%
Tax	Rs m	98	111	13.2%
Profit after tax	Rs m	187	435	132.2%
Gross profit margin	%	7.1	9.1
Effective tax rate	%	34.4	20.4
Net profit margin	%	1.6	3.6

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ASIAN GRANITO Balance Sheet Analysis

• The company's current liabilities during FY20 down at Rs 6 billion as compared to Rs 7 billion in FY19, thereby witnessing an decrease of -10.4%.
• Long-term debt down at Rs 809 million as compared to Rs 988 million during FY19, a fall of 18.1%.
• Current assets fell 3% and stood at Rs 7 billion, while fixed assets rose 0% and stood at Rs 5 billion in FY20.
• Overall, the total assets and liabilities for FY20 stood at Rs 13 billion as against Rs 13 billion during FY19, thereby witnessing a fall of 2%.

ASIAN GRANITO Balance Sheet as on March 2020

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*	% Change
Networth	Rs m	4,511	4,962	10.0
Current Liabilities	Rs m	6,641	5,950	-10.4
Long-term Debt	Rs m	988	809	-18.1
Total Liabilities	Rs m	12,811	12,591	-1.7
Current assets	Rs m	7,642	7,403	-3.1
Fixed Assets	Rs m	5,169	5,188	0.4
Total Assets	Rs m	12,811	12,591	-1.7

ASIAN GRANITO Cash Flow Statement Analysis

• ASIAN GRANITO 's cash flow from operating activities (CFO) during FY20 stood at Rs 565 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY20 stood at Rs -406 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY20 stood at Rs -397 million on a YoY basis.
• Overall, net cash flows for the company during FY20 stood at Rs -239 million from the Rs 94 million net cash flows seen during FY19.

ASIAN GRANITO Cash Flow Statement 2019-20

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-19	Mar-20
Cash Flow from Operating Activities	Rs m	876	565	-35.5%
Cash Flow from Investing Activities	Rs m	-623	-406	-
Cash Flow from Financing Activities	Rs m	-159	-397	-
Net Cash Flow	Rs m	94	-239	-

Current Valuations for ASIAN GRANITO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.5, an improvement from the EPS of Rs 6.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 164.3, stands at 47.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 8.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Sales per share (Unadj.)	Rs	394.4	407.0
TTM Earnings per share	Rs	6.2	14.5
Diluted earnings per share	Rs	1.5	3.4
Price to Cash Flow	x	68.3	8.6
TTM P/E ratio	x	167.8	47.8
Price / Book Value ratio	x	2.2	1.3
Market Cap	Rs m	9,778	6,379
Dividends per share (Unadj.)	Rs	0.6	0.7

Ratio Analysis for ASIAN GRANITO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY20, from 1.2x during FY19. 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 2.4x during FY20, from 1.8x during FY19. 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 8.8% during FY20, from 4.2% during FY20. 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 16.4% during FY20, from 11.9% during FY19. 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 6.6% during FY20, from 4.3% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-19*	12 Mar-20*
Current ratio	x	1.2	1.2
Debtors’ Days	Days	1,231	1,116
Interest coverage	x	1.8	2.4
Debt to equity ratio	x	0.2	0.2
Return on assets	%	4.3	6.6
Return on equity	%	4.2	8.8
Return on capital employed	%	11.9	16.4

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

ASIAN GRANITO Share Price Performance

Over the last one year, ASIAN GRANITO share price has moved down from Rs 248.1 to Rs 164.3, registering a loss of Rs 83.8 or around 33.8%.

Overall, the S&P BSE SENSEX is down 24.2% over the year.

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

Read: Latest Annual Report Analysis of ASIAN GRANITO