AMARA RAJA BATTERIES 2018-19 Annual Report Analysis

Sun, 31 Mar

AMARA RAJA BATTERIES 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.

AMARA RAJA BATTERIES Income Statement Analysis

• Operating income during the year rose 15.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.0% in FY19 as against 15.0% in FY18.
• Depreciation charges increased by 13.4% and finance costs increased by 37.4% YoY, respectively.
• Other income declined by 28.1% YoY.
• Net profit for the year grew by 2.5% YoY.
• Net profit margins during the year declined from 8.0% in FY18 to 7.1% in FY19.

AMARA RAJA BATTERIES Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	58,853	67,931	15.4%
Other income	Rs m	664	477	-28.1%
Total Revenues	Rs m	59,517	68,408	14.9%
Gross profit	Rs m	8,832	9,505	7.6%
Depreciation	Rs m	2,303	2,612	13.4%
Interest	Rs m	51	70	37.4%
Profit before tax	Rs m	7,142	7,301	2.2%
Tax	Rs m	2,429	2,469	1.6%
Profit after tax	Rs m	4,713	4,832	2.5%
Gross profit margin	%	15.0	14.0
Effective tax rate	%	34.0	33.8
Net profit margin	%	8.0	7.1

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AMARA RAJA BATTERIES Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 9 billion as compared to Rs 10 billion in FY18, thereby witnessing an decrease of -9.1%.
• Long-term debt down at Rs 468 million as compared to Rs 584 million during FY18, a fall of 19.9%.
• Current assets rose 2% and stood at Rs 22 billion, while fixed assets rose 14% and stood at Rs 23 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 45 billion as against Rs 42 billion during FY18, thereby witnessing a growth of 8%.

AMARA RAJA BATTERIES Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	29,374	33,350	13.5
Current Liabilities	Rs m	9,930	9,025	-9.1
Long-term Debt	Rs m	584	468	-19.9
Total Liabilities	Rs m	41,686	44,957	7.8
Current assets	Rs m	21,523	22,041	2.4
Fixed Assets	Rs m	20,163	22,916	13.7
Total Assets	Rs m	41,686	44,957	7.8

AMARA RAJA BATTERIES Cash Flow Statement Analysis

• AMARA RAJA BATTERIES's cash flow from operating activities (CFO) during FY19 stood at Rs 5 billion, an improvement of 68.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -5 billion, an improvement of 89.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -916 million, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 15 million from the Rs -520 million net cash flows seen during FY18.

AMARA RAJA BATTERIES 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	3,217	5,411	68.2%
Cash Flow from Investing Activities	Rs m	-2,443	-4,629	-
Cash Flow from Financing Activities	Rs m	-1,382	-916	-
Net Cash Flow	Rs m	-520	15	-

Current Valuations for AMARA RAJA BATTERIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.3, an improvement from the EPS of Rs 27.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 719.0, stands at 25.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 18.2 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	344.6	397.7
TTM Earnings per share	Rs	27.6	28.3
Diluted earnings per share	Rs	27.6	28.3
Price to Cash Flow	x	19.4	18.2
TTM P/E ratio	x	28.9	25.4
Price / Book Value ratio	x	4.7	4.1
Market Cap	Rs m	138,230	135,369
Dividends per share (Unadj.)	Rs	4.2	7.1

Ratio Analysis for AMARA RAJA BATTERIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY19, from 2.2x 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 deteriorated and stood at 106.1x during FY19, from 142.1x 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 14.5% during FY19, from 16.0% 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 21.8% during FY19, from 24.0% 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 10.9% during FY19, from 11.4% 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	2.2	2.4
Debtors’ Days	Days	5	4
Interest coverage	x	142.1	106.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.4	10.9
Return on equity	%	16.0	14.5
Return on capital employed	%	24.0	21.8

To see how AMARA RAJA BATTERIES has performed over the last 5 years, please visit here.

AMARA RAJA BATTERIES Share Price Performance

Over the last one year, AMARA RAJA BATTERIES share price has moved down from Rs 797.5 to Rs 719.0, registering a loss of Rs 78.6 or around 9.8%.

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

(To know more, check out historical annual results for AMARA RAJA BATTERIES and quarterly results for AMARA RAJA BATTERIES)

Read: Latest Annual Report Analysis of AMARA RAJA ENERGY & MOBILITY