ANSAL HOUSING 2018-19 Annual Report Analysis

Sun, 31 Mar

ANSAL HOUSING 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.

ANSAL HOUSING Income Statement Analysis

• Operating income during the year fell 21.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.2% in FY19 as against 12.4% in FY18.
• Depreciation charges increased by 6.7% and finance costs decreased by 5.5% YoY, respectively.
• Other income grew by 18.4% YoY.
• Net profit for the year declined by 79.3% YoY.
• Net profit margins during the year grew from 7.7% in FY18 to 2.0% in FY19.

ANSAL HOUSING Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	2,492	1,949	-21.8%
Other income	Rs m	262	310	18.4%
Total Revenues	Rs m	2,754	2,259	-18.0%
Gross profit	Rs m	309	354	14.6%
Depreciation	Rs m	16	17	6.7%
Interest	Rs m	827	782	-5.5%
Profit before tax	Rs m	-272	-135	-50.5%
Tax	Rs m	-81	-95	17.3%
Profit after tax	Rs m	-191	-39	-79.3%
Gross profit margin	%	12.4	18.2
Effective tax rate	%	29.9	70.7
Net profit margin	%	-7.7	-2.0

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ANSAL HOUSING Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 20 billion as compared to Rs 10 billion in FY18, thereby witnessing an increase of 96.4%.
• Long-term debt down at Rs 1 billion as compared to Rs 4 billion during FY18, a fall of 70.1%.
• Current assets rose 29% and stood at Rs 23 billion, while fixed assets fell 6% and stood at Rs 2 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 25 billion as against Rs 20 billion during FY18, thereby witnessing a growth of 26%.

ANSAL HOUSING Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	4,205	2,884	-31.4
Current Liabilities	Rs m	10,100	19,839	96.4
Long-term Debt	Rs m	3,835	1,146	-70.1
Total Liabilities	Rs m	19,928	25,077	25.8
Current assets	Rs m	18,053	23,305	29.1
Fixed Assets	Rs m	1,876	1,772	-5.5
Total Assets	Rs m	19,928	25,077	25.8

ANSAL HOUSING Cash Flow Statement Analysis

• ANSAL HOUSING's cash flow from operating activities (CFO) during FY19 stood at Rs 556 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 267 million, an improvement of 250.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -827 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -3 million from the Rs 2 million net cash flows seen during FY18.

ANSAL HOUSING 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	718	556	-22.5%
Cash Flow from Investing Activities	Rs m	76	267	250.7%
Cash Flow from Financing Activities	Rs m	-793	-827	-
Net Cash Flow	Rs m	2	-3	-

Current Valuations for ANSAL HOUSING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.7, an improvement from the EPS of Rs -3.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 12.1, stands at -8.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.2 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at -42.5 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	42.0	32.8
TTM Earnings per share	Rs	-3.2	-0.7
Diluted earnings per share	Rs	-3.2	-0.7
Price to Cash Flow	x	-6.8	-42.5
TTM P/E ratio	x	-5.5	-8.9
Price / Book Value ratio	x	0.4	0.3
Market Cap	Rs m	1,630	937
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ANSAL HOUSING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY19, from 1.8x 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 0.8x during FY19, from 0.7x 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 improved and stood at -1.4% during FY19, from -4.5% 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 improved and stood at 16.1% during FY19, from 6.9% 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 3.0% during FY19, from 3.2% 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	1.8	1.2
Debtors’ Days	Days	1,333	1,675
Interest coverage	x	0.7	0.8
Debt to equity ratio	x	0.9	0.4
Return on assets	%	3.2	3.0
Return on equity	%	-4.5	-1.4
Return on capital employed	%	6.9	16.1

To see how ANSAL HOUSING has performed over the last 5 years, please visit here.

ANSAL HOUSING Share Price Performance

Over the last one year, ANSAL HOUSING share price has moved down from Rs 19.9 to Rs 12.1, registering a loss of Rs 7.8 or around 39.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,077.1 (up 0.6%). Over the last one year it has moved down from 2,229.9 to 2,077.1, a loss of 153 points (down 6.9%).

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

(To know more, check out historical annual results for ANSAL HOUSING and quarterly results for ANSAL HOUSING)

Read: Latest Annual Report Analysis of ANSAL HOUSING