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AIA ENGINEERING 2018-19 Annual Report Analysis
Sun, 31 Mar

AIA ENGINEERING 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.

AIA ENGINEERING Income Statement Analysis

  • Operating income during the year rose 26.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 22.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.6% in FY19 as against 22.3% in FY18.
  • Depreciation charges increased by 20.2% and finance costs increased by 2.6% YoY, respectively.
  • Other income declined by 0.7% YoY.
  • Net profit for the year grew by 15.3% YoY.
  • Net profit margins during the year declined from 18.3% in FY18 to 16.7% in FY19.

AIA ENGINEERING Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 24,236 30,695 26.7%
Other income Rs m 1,218 1,209 -0.7%
Total Revenues Rs m 25,454 31,904 25.3%
Gross profit Rs m 5,396 6,634 22.9%
Depreciation Rs m 656 788 20.2%
Interest Rs m 108 111 2.6%
Profit before tax Rs m 5,850 6,944 18.7%
Tax Rs m 1,414 1,830 29.4%
Profit after tax Rs m 4,436 5,114 15.3%
Gross profit margin % 22.3 21.6
Effective tax rate % 24.2 26.3
Net profit margin % 18.3 16.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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AIA ENGINEERING Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 4 billion as compared to Rs 5 billion in FY18, thereby witnessing an decrease of -13.0%.
  • Long-term debt stood at Rs 150 million as compared to Rs 2 million during FY18, a growth of 7437.7%.
  • Current assets rose 13% and stood at Rs 31 billion, while fixed assets rose 13% and stood at Rs 10 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 40 billion as against Rs 36 billion during FY18, thereby witnessing a growth of 13%.

AIA ENGINEERING Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 30,093 35,137 16.8
 
Current Liabilities Rs m 4,581 3,986 -13.0
Long-term Debt Rs m 2 150 7,437.7
Total Liabilities Rs m 35,585 40,327 13.3
 
Current assets Rs m 26,971 30,568 13.3
Fixed Assets Rs m 8,614 9,759 13.3
Total Assets Rs m 35,585 40,327 13.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



AIA ENGINEERING Cash Flow Statement Analysis

  • AIA ENGINEERING's cash flow from operating activities (CFO) during FY19 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -1 million, an improvement of 100% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 272 million from the Rs -604 million net cash flows seen during FY18.

AIA ENGINEERING 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 2,942 1,897 -35.5%
Cash Flow from Investing Activities Rs m -2,050 -1,638 -
Cash Flow from Financing Activities Rs m -1,583 -1 -
Net Cash Flow Rs m -604 272 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for AIA ENGINEERING

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 54.2, an improvement from the EPS of Rs 47.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,789.9, stands at 33.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 5.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 27.2 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 257.0 325.4
TTM Earnings per share Rs 47.0 54.2
Diluted earnings per share Rs 47.0 54.2
Price to Cash Flow x 26.4 27.2
TTM P/E ratio x 30.3 33.0
Price / Book Value ratio x 4.7 4.6
Market Cap Rs m 140,443 160,559
Dividends per share (Unadj.) Rs 8.0 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for AIA ENGINEERING

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 7.7x during FY19, from 5.9x 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 63.4x during FY19, from 55.0x 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 14.6% during FY19, from 14.7% 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 20.0% during FY19, from 19.8% 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 13.0% during FY19, from 12.8% 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 5.9 7.7
Debtors’ Days Days 904 840
Interest coverage x 55.0 63.4
Debt to equity ratio x 0.0 0.0
Return on assets % 12.8 13.0
Return on equity % 14.7 14.6
Return on capital employed % 19.8 20.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

AIA ENGINEERING Share Price Performance

Over the last one year, AIA ENGINEERING share price has moved up from Rs 1,426.9 to Rs 1,789.9, registering a gain of Rs 363.0 or around 25.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of AIA ENGINEERING?

AIA ENGINEERING currently trades at Rs 3,654.0 per share. You can check out the latest share price performance of AIA ENGINEERING here...

What was the revenue of AIA ENGINEERING in FY19? How does it compare to earlier years?

The revenues of AIA ENGINEERING stood at Rs 31,904 m in FY19, which was up 25.3% compared to Rs 25,454 m reported in FY18.

AIA ENGINEERING's revenue has grown from Rs 21,947 m in FY15 to Rs 31,904 m in FY19.

Over the past 5 years, the revenue of AIA ENGINEERING has grown at a CAGR of 9.8%.

What was the net profit of AIA ENGINEERING in FY19? How does it compare to earlier years?

The net profit of AIA ENGINEERING stood at Rs 5,114 m in FY19, which was up 15.3% compared to Rs 4,436 m reported in FY18.

This compares to a net profit of Rs 4,572 m in FY17 and a net profit of Rs 4,568 m in FY16.

Over the past 5 years, AIA ENGINEERING net profit has grown at a CAGR of 4.4%.

What does the cash flow statement of AIA ENGINEERING reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of AIA ENGINEERING reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 1,897 m as compared to Rs 2,942 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs -1,638 m as compared to Rs -2,050 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs -1 m as compared to Rs -1,583 m in FY18.

Here's the cash flow statement of AIA ENGINEERING for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations3,0705,9502,3062,9421,897
From Investments-2,568-4,493-161-2,050-1,638
From Financial Activity-833-2,084-909-1,583-1
Net Cashflow-330-6271,235-604272

What does the Key Ratio analysis of AIA ENGINEERING reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of AIA ENGINEERING reveals:

  • Operating profit margins witnessed a fall and stood at 21.6% in FY19 as against 22.3% in FY18.
  • Net profit margins declined from 18.3% in FY18 to 16.7% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of AIA ENGINEERING for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)27.830.329.422.321.6
Net Profit Margin (%)20.422.621.118.316.7
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of AIA ENGINEERING

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