AMARA RAJA BATTERIES 2018-19 Annual Report Analysis

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AMARA RAJA BATTERIES 2018-19 Annual Report Analysis
Mon, 9 Sep

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 12.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 7.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.0% in FY19 as against 14.6% in FY18.
  • Depreciation charges increased by 13.4% and finance costs increased by 37.4% YoY, respectively.
  • Other income declined by 29.5% YoY.
  • Net profit for the year grew by 2.5% YoY.
  • Net profit margins during the year declined from 7.7% 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 60,592 67,931 12.1%
Other income Rs m 664 468 -29.5%
Total Revenues Rs m 61,255 68,399 11.7%
Gross profit Rs m 8,832 9,515 7.7%
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 % 14.6 14.0
Effective tax rate % 34.0 33.8
Net profit margin % 7.7 7.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 10% and stood at Rs 21 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 19,296 21,275 10.3
Total Assets Rs m 41,686 44,957 7.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 639.6, stands at 21.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 14.7 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 354.7 397.7
TTM Earnings per share Rs 27.6 28.3
Diluted earnings per share Rs 27.6 28.3
Price to Cash Flow x 15.6 14.7
TTM P/E ratio x 21.4 21.4
Price / Book Value ratio x 4.7 4.1
Market Cap Rs m 109,250 109,256
Dividends per share (Unadj.) Rs 4.2 7.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 47 41
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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 816.9 to Rs 639.6, registering a loss of Rs 177.3 or around 21.7%.

Overall, the S&P BSE SENSEX is down 2.7% over the year.

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

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