AMARA RAJA BATTERIES 2019-20 Annual Report Analysis

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AMARA RAJA BATTERIES 2019-20 Annual Report Analysis
Tue, 18 Aug

AMARA RAJA BATTERIES has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

AMARA RAJA BATTERIES Income Statement Analysis

  • Operating income during the year rose 0.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 15.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.1% in FY20 as against 14.0% in FY19.
  • Depreciation charges increased by 15.1% and finance costs increased by 75.4% YoY, respectively.
  • Other income grew by 17.7% YoY.
  • Net profit for the year grew by 36.7% YoY.
  • Net profit margins during the year grew from 7.1% in FY19 to 9.6% in FY20.

AMARA RAJA BATTERIES Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 67,931 68,392 0.7%
Other income Rs m 468 551 17.7%
Total Revenues Rs m 68,399 68,942 0.8%
Gross profit Rs m 9,515 10,985 15.5%
Depreciation Rs m 2,612 3,007 15.1%
Interest Rs m 70 122 75.4%
Profit before tax Rs m 7,301 8,407 15.1%
Tax Rs m 2,469 1,799 -27.1%
Profit after tax Rs m 4,832 6,608 36.7%
Gross profit margin % 14.0 16.1
Effective tax rate % 33.8 21.4
Net profit margin % 7.1 9.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Discover: India's #1 Defence Stock

AMARA RAJA BATTERIES Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 11 billion as compared to Rs 9 billion in FY19, thereby witnessing an increase of 22.1%.
  • Long-term debt down at Rs 343 million as compared to Rs 468 million during FY19, a fall of 26.6%.
  • Current assets rose 1% and stood at Rs 22 billion, while fixed assets rose 25% and stood at Rs 27 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 50 billion as against Rs 45 billion during FY19, thereby witnessing a growth of 11%.

AMARA RAJA BATTERIES Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 33,350 36,553 9.6
 
Current Liabilities Rs m 9,025 11,021 22.1
Long-term Debt Rs m 468 343 -26.6
Total Liabilities Rs m 44,957 50,004 11.2
 
Current assets Rs m 22,041 22,233 0.9
Fixed Assets Rs m 21,275 26,562 24.9
Total Assets Rs m 44,957 50,004 11.2
* 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 FY20 stood at Rs 12 billion, an improvement of 117.4% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -8 billion, an improvement of 83.5% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -176 million from the Rs 15 million net cash flows seen during FY19.

AMARA RAJA BATTERIES Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 5,411 11,766 117.4%
Cash Flow from Investing Activities Rs m -4,629 -8,494 -
Cash Flow from Financing Activities Rs m -916 -3,638 -
Net Cash Flow Rs m 15 -176 -
* 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 38.7, an improvement from the EPS of Rs 28.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 767.2, stands at 22.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 13.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 397.7 400.4
TTM Earnings per share Rs 28.3 38.7
Diluted earnings per share Rs 28.3 38.7
Price to Cash Flow x 17.6 13.6
TTM P/E ratio x 22.5 22.5
Price / Book Value ratio x 4.1 2.8
Market Cap Rs m 131,037 131,045
Dividends per share (Unadj.) Rs 7.1 11.0
* 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 deteriorated and stood at 2.0x during FY20, from 2.4x during FY19. 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 70.0x during FY20, from 106.1x during FY19. 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 improved and stood at 18.1% during FY20, from 14.5% during FY20. 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 23.1% during FY20, from 21.8% during FY19. 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 13.5% during FY20, from 10.9% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 2.4 2.0
Debtors’ Days Days 41 34
Interest coverage x 106.1 70.0
Debt to equity ratio x 0.0 0.0
Return on assets % 10.9 13.5
Return on equity % 14.5 18.1
Return on capital employed % 21.8 23.1
* 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 up from Rs 618.4 to Rs 767.2, registering a gain of Rs 148.8 or around 24.1%.

Overall, the S&P BSE SENSEX is up 2.3% 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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Related Views on News

AMARA RAJA BATTERIES Announces Quarterly Results (1QFY21); Net Profit Down 55.5% (Quarterly Result Update)

Aug 18, 2020 | Updated on Aug 18, 2020

For the quarter ended June 2020, AMARA RAJA BATTERIES has posted a net profit of Rs 627 m (down 55.5% YoY). Sales on the other hand came in at Rs 12 bn (down 36.6% YoY). Read on for a complete analysis of AMARA RAJA BATTERIES's quarterly results.

AMARA RAJA BATTERIES Announces Quarterly Results (4QFY20); Net Profit Up 14.5% (Quarterly Result Update)

Jun 1, 2020 | Updated on Jun 1, 2020

For the quarter ended March 2020, AMARA RAJA BATTERIES has posted a net profit of Rs 1 bn (up 14.5% YoY). Sales on the other hand came in at Rs 16 bn (up 0.9% YoY). Read on for a complete analysis of AMARA RAJA BATTERIES's quarterly results.

AMARA RAJA BATTERIES 2018-19 Annual Report Analysis (Annual Result Update)

Sep 9, 2019 | Updated on Sep 9, 2019

Here's an analysis of the annual report of AMARA RAJA BATTERIES for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of AMARA RAJA BATTERIES. Also includes updates on the valuation of AMARA RAJA BATTERIES.

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