AIA ENGINEERING 2018-19 Annual Report Analysis

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AIA ENGINEERING 2018-19 Annual Report Analysis
Tue, 17 Sep

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 25.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 23.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.5% in FY19 as against 21.9% in FY18.
  • Depreciation charges increased by 20.2% and finance costs increased by 8.9% YoY, respectively.
  • Other income declined by 0.8% YoY.
  • Net profit for the year grew by 15.3% YoY.
  • Net profit margins during the year declined from 17.3% in FY18 to 16.0% in FY19.

AIA ENGINEERING Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 24,451 30,695 25.5%
Other income Rs m 1,218 1,209 -0.8%
Total Revenues Rs m 25,670 31,904 24.3%
Gross profit Rs m 5,357 6,599 23.2%
Depreciation Rs m 656 789 20.2%
Interest Rs m 69 76 8.9%
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 % 21.9 21.5
Effective tax rate % 24.2 26.3
Net profit margin % 17.3 16.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 7400.0%.
  • Current assets rose 13% and stood at Rs 31 billion, while fixed assets rose 18% and stood at Rs 9 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 7,400.0
Total Liabilities Rs m 35,585 40,328 13.3
 
Current assets Rs m 26,971 30,569 13.3
Fixed Assets Rs m 7,679 9,045 17.8
Total Assets Rs m 35,585 40,328 13.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 -15 million, an improvement of 99% 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 1,996 -32.1%
Cash Flow from Investing Activities Rs m -2,050 -1,714 -
Cash Flow from Financing Activities Rs m -1,583 -15 -
Net Cash Flow Rs m -604 272 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 1,626.0, stands at 28.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 5.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 26.0 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 259.2 325.4
TTM Earnings per share Rs 47.0 54.2
Diluted earnings per share Rs 47.0 54.2
Price to Cash Flow x 30.1 26.0
TTM P/E ratio x 28.1 28.1
Price / Book Value ratio x 4.7 4.6
Market Cap Rs m 153,364 153,364
Dividends per share (Unadj.) Rs 8.0 9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 93.0x during FY19, from 85.4x 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 19.9% during FY19, from 19.7% 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 12.9% during FY19, from 12.7% 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 90 84
Interest coverage x 85.4 93.0
Debt to equity ratio x 0.0 0.0
Return on assets % 12.7 12.9
Return on equity % 14.7 14.6
Return on capital employed % 19.7 19.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 down from Rs 1,758.6 to Rs 1,626.0, registering a loss of Rs 132.6 or around 7.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 17,261.5 (down 0.2%). Over the last one year it has moved down from 18,429.3 to 17,261.5, a loss of 1,168 points (down 6.3%).

Overall, the S&P BSE SENSEX is down 1.5% over the year.

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

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