AHLUWALIA CONTRACTS 2018-19 Annual Report Analysis

Tue, 24 Sep

AHLUWALIA CONTRACTS 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.

AHLUWALIA CONTRACTS Income Statement Analysis

• Operating income during the year rose 6.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.3% in FY19 as against 13.3% in FY18.
• Depreciation charges increased by 7.5% and finance costs decreased by 23.4% YoY, respectively.
• Other income grew by 54.8% YoY.
• Net profit for the year grew by 1.5% YoY.
• Net profit margins during the year declined from 7.0% in FY18 to 6.7% in FY19.

AHLUWALIA CONTRACTS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	16,466	17,522	6.4%
Other income	Rs m	63	98	54.8%
Total Revenues	Rs m	16,529	17,620	6.6%
Gross profit	Rs m	2,192	2,162	-1.4%
Depreciation	Rs m	256	276	7.5%
Interest	Rs m	251	192	-23.4%
Profit before tax	Rs m	1,748	1,792	2.5%
Tax	Rs m	594	620	4.4%
Profit after tax	Rs m	1,154	1,172	1.5%
Gross profit margin	%	13.3	12.3
Effective tax rate	%	34.0	34.6
Net profit margin	%	7.0	6.7

AHLUWALIA CONTRACTS Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 7 billion as compared to Rs 6 billion in FY18, thereby witnessing an increase of 13.4%.
• Long-term debt down at Rs 6 million as compared to Rs 7 million during FY18, a fall of 13.7%.
• Current assets rose 24% and stood at Rs 11 billion, while fixed assets rose 1% and stood at Rs 2 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 15 billion as against Rs 13 billion during FY18, thereby witnessing a growth of 18%.

AHLUWALIA CONTRACTS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	6,213	7,343	18.2
Current Liabilities	Rs m	5,997	6,802	13.4
Long-term Debt	Rs m	7	6	-13.7
Total Liabilities	Rs m	12,521	14,825	18.4
Current assets	Rs m	9,100	11,270	23.8
Fixed Assets	Rs m	1,900	1,919	1.0
Total Assets	Rs m	12,521	14,825	18.4

AHLUWALIA CONTRACTS Cash Flow Statement Analysis

• AHLUWALIA CONTRACTS's cash flow from operating activities (CFO) during FY19 stood at Rs 857 million, an improvement of 5.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -426 million, an improvement of 114.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs 191 million, an improvement of 127% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 622 million from the Rs -85 million net cash flows seen during FY18.

AHLUWALIA CONTRACTS 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	810	857	5.9%
Cash Flow from Investing Activities	Rs m	-198	-426	-
Cash Flow from Financing Activities	Rs m	-696	191	-
Net Cash Flow	Rs m	-85	622	-

Current Valuations for AHLUWALIA CONTRACTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.5, an improvement from the EPS of Rs 17.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 320.0, stands at 20.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 14.8 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	245.8	261.6
TTM Earnings per share	Rs	17.2	17.5
Diluted earnings per share	Rs	17.2	17.5
Price to Cash Flow	x	15.2	14.8
TTM P/E ratio	x	20.0	20.0
Price / Book Value ratio	x	3.6	3.1
Market Cap	Rs m	21,437	21,437
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for AHLUWALIA CONTRACTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x 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 improved and stood at 10.3x during FY19, from 8.0x 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 16.0% during FY19, from 18.6% 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 declined and down at 27.0% during FY19, from 32.1% 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 declined and down at 9.2% during FY19, from 11.2% 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	1.7
Debtors’ Days	Days	125	135
Interest coverage	x	8.0	10.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.2	9.2
Return on equity	%	18.6	16.0
Return on capital employed	%	32.1	27.0

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

AHLUWALIA CONTRACTS Share Price Performance

Over the last one year, AHLUWALIA CONTRACTS share price has moved up from Rs 282.0 to Rs 320.0, registering a gain of Rs 38.0 or around 13.5%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,089.3 (down 0.2%). Over the last one year it has moved up from 1,841.3 to 2,089.3, a gain of 248 points (up 13.5%).

Overall, the S&P BSE SENSEX is up 8.0% over the year.

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