GE T&D INDIA 2018-19 Annual Report Analysis

Sun, 31 Mar

GE T&D INDIA 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.

GE T&D INDIA Income Statement Analysis

• Operating income during the year fell 1.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 62.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.5% in FY19 as against 6.4% in FY18.
• Depreciation charges decreased by 7.4% and finance costs decreased by 19.7% YoY, respectively.
• Other income declined by 75.7% YoY.
• Net profit for the year grew by 1.9% YoY.
• Net profit margins during the year grew from 4.9% in FY18 to 5.0% in FY19.

GE T&D INDIA Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	42,776	42,188	-1.4%
Other income	Rs m	2,401	583	-75.7%
Total Revenues	Rs m	45,177	42,771	-5.3%
Gross profit	Rs m	2,744	4,445	62.0%
Depreciation	Rs m	899	832	-7.4%
Interest	Rs m	1,059	850	-19.7%
Profit before tax	Rs m	3,188	3,346	4.9%
Tax	Rs m	1,101	1,219	10.8%
Profit after tax	Rs m	2,088	2,127	1.9%
Gross profit margin	%	6.4	10.5
Effective tax rate	%	34.5	36.4
Net profit margin	%	4.9	5.0

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GE T&D INDIA Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 30 billion as compared to Rs 38 billion in FY18, thereby witnessing an decrease of -20.2%.
• Current assets fell 11% and stood at Rs 36 billion, while fixed assets rose 3% and stood at Rs 15 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 51 billion as against Rs 56 billion during FY18, thereby witnessing a fall of 8%.

GE T&D INDIA Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	11,896	14,280	20.0
Current Liabilities	Rs m	37,742	30,116	-20.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	55,672	51,452	-7.6
Current assets	Rs m	40,953	36,309	-11.3
Fixed Assets	Rs m	14,720	15,143	2.9
Total Assets	Rs m	55,672	51,452	-7.6

GE T&D INDIA Cash Flow Statement Analysis

• GE T&D INDIA's cash flow from operating activities (CFO) during FY19 stood at Rs -4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -1 billion, an improvement of 80% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -2 billion from the Rs 2 billion net cash flows seen during FY18.

GE T&D INDIA 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	10,540	-3,549	-
Cash Flow from Investing Activities	Rs m	-3,045	2,869	-
Cash Flow from Financing Activities	Rs m	-5,848	-1,145	-
Net Cash Flow	Rs m	1,634	-1,823	-

Current Valuations for GE T&D INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.3, an improvement from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 274.6, stands at 33.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 27.4 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	167.1	164.8
TTM Earnings per share	Rs	8.2	8.3
Diluted earnings per share	Rs	8.2	8.3
Price to Cash Flow	x	34.7	27.4
TTM P/E ratio	x	49.6	33.1
Price / Book Value ratio	x	8.5	5.7
Market Cap	Rs m	101,202	80,962
Dividends per share (Unadj.)	Rs	1.8	1.8

Ratio Analysis for GE T&D INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY19, from 1.1x 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 4.9x during FY19, from 4.0x 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 14.9% during FY19, from 17.5% 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 29.4% during FY19, from 35.7% 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 5.8% during FY19, from 5.7% 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	1.1	1.2
Debtors’ Days	Days	154	175
Interest coverage	x	4.0	4.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.7	5.8
Return on equity	%	17.5	14.9
Return on capital employed	%	35.7	29.4

To see how GE T&D INDIA has performed over the last 5 years, please visit here.

GE T&D INDIA Share Price Performance

Over the last one year, GE T&D INDIA share price has moved down from Rs 404.8 to Rs 274.6, registering a loss of Rs 130.2 or around 32.2%.

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 GE T&D INDIA and quarterly results for GE T&D INDIA)

Read: Latest Annual Report Analysis of GE T&D INDIA